Alsons January-June earnings revved up 42.8%
Alsons Consolidated Resources Inc. (ACR) of the Alcantara Group reported a 42.8-percent jump in earnings for six months ending June. This was fueled by its coal-fired power plant in Sarangani.
On Friday, ACR said its net income attributable to the parent company soared to P517.19 million. This came from P362.23 million in the same period last year.
Net income stood at P1.3 billion, a 21 percent increase, although revenues dropped by 1.9 percent to P5.78 billion.
Despite this decline, the most recent reported revenue is equivalent to 98 percent of last year’s first-semester revenues of P5.9 billion.
“The results were driven by the continuing strong performance of Sarangani Energy Corp. alongside the combined contributions of ACR’s business units,” the company said in a statement.
Through SEC, the listed firm operates the 210-megawatt baseload coal-fired power plant in Maasim town. It supplies electricity to around four million people in Sarangani, General Santos, Cagayan de Oro, Iligan, Dapitan, Dipolog, Pagadian, Digos, Samal, Butuan, Koronadal, Kidapawan and other key areas of Mindanao.
ACR also said its improved participation in the Wholesale Electricity Spot Market (WESM), the venue for trading electricity as a commodity, along with Siguil Hydro Power Corp. (SHPC) and Alsons Power Supply Corp., its retail electricity supply (RES) unit boosted its profitability.
The company’s 14.5-megawatt hydropower plant in Maasim town, which began commercial operations in June last year, now operates as a must-run facility in the WESM.
Meanwhile, the cost of goods sold and services fell 8 percent to P3.4 billion. This was largely due to lower fuel costs and reduced direct operating expenses.
“Despite the challenging market and the economic impact of geopolitical events, we are pleased to report a stable, profitable and strong first half performance. This achievement is a testament to the dedication and resilience of our entire team, as well as the trust and support of our stakeholders,” ACR chief finance officer Roberto Joaquin Ramos said.
“Looking ahead, we remain confident that our momentum combined with operational discipline and our values will not only carry us through the rest of the year but in the periods to come,” Ramos added.
The listed firm said it is keen on jump-starting the construction of its first large-scale solar power project in Mindanao within the year.
“ACR is dedicated to expanding its renewable energy portfolio through various solar and hydropower projects which are in different stages of development,” it added.
