Slashed expenses pushed up Alsons H1 income to P362.22M

A slash in expenses allowed Alsons Consolidated Resources Inc. to earn more in the first half despite recording a weaker topline.

In a disclosure on Thursday, the Alcantara-led company said net income attributable to parent reached P362.22 million, slightly higher than the P346.14 million booked a year ago.

Total expenses were reduced to P4.6 billion from the previous P5.59 billion as its direct costs in coal and replacement power dropped.

Revenues in the January to June period, however, fell to P5.89 billion from the previous P6.93 billion due to lower passed-on coal costs. Alsons also noted Sarangani Energy Corp. (SEC) plant experienced forced outages from late last year to February 2024.

SEC delivers power to key areas in Mindanao, including Sarangani province, General Santos, Cagayan de Oro, Iligan, Dipolog, Dapitan, Pagadian, Samal, Tagum, Kidapawan and Butuan.

However, Alsons said the company witnessed stronger electricity demand in the second quarter, with its revenues climbing by 64 percent to P3.26 billion, up from the prior quarter’s P1.99 billion.

The company attributed the increase in demand in the period ending June to the El Niño weather conditions marked by warmer temperatures.

“We’ve made a solid recovery after the disruptions caused by the Mindanao earthquake last year, November 2023,” said Philip Edward Sagun, Alsons deputy chief financial officer.

“Our outlook for the rest of the year is positive, bolstered by our new ASPA (ancillary service procurement agreement) with NGCP and the opportunities presented by the RCOA (Retail Competition and Open Access) Market in Mindanao,” he added.

RCOA allows power customers consuming at least 500 kilowatts a month to purchase cheaper electricity from retailers other than the existing distributors in their area.

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Alsons recently secured a retail electricity supply deal with Holcim Philippines to provide 80 percent of the latter’s energy needs for its facilities in Davao and Misamis Oriental.

“We look forward to collaborating with other industry players, particularly in the Visayas region, where a power supply shortage is forecasted for next year,” the official added.

The company also expects to make its 14.5-megawatt Siguil Hydro Power Project in Sarangani operational within the year.

Alsons has currently a capacity of 468 megawatts, supplying power to more than eight million consumers in Mindanao.