PUBLICLY listed SPC Power Corp. said its net income in the first nine months fell 22 percent to P336.6 million due to a substantial decline in foreign exchange gains.

In a filing with the Philippine Stock Exchange, SPC Power noted that the marked increase in revenues generated by its subsidiaries was not sufficient to offset the rise in its cost of services and other operating expenses.

The group posted a consolidate revenue growth of 35.4 percent to P1.18 billion in the first nine months, boosted by the acquisition of diesel power plants in the islands of Panay and Bohol.

However, net foreign exchange gains, resulting from the revaluation of dollar-denominated assets of the parent company, plunged by almost 98 percent to only P6.2 million from a year-ago level of P266.5 million.

?Net foreign exchange gains were low in 2009 because the exchange rate of the peso to a dollar increased slightly, only by 0.1 percent to P47.59 as of Sept. 30, coming from P47.52 at the beginning of the year,? SPC Power explained.

"In contrast, substantial foreign exchange gains were booked in the first nine months of 2008 because the exchange rate of the peso to a dollar increased by 14 percent to P47.05 as of Sept. 30, 2008, from P41.28 at the beginning of 2008,? the company added.

Meanwhile, the consolidated cost of services increased by 33 percent to P741.1 million in 2009 due to the additional costs incurred for the operation of the two diesel power plants beginning March this year, among others.

SPC also reported that its net cash inflows from operating activities in the first nine months of 2009 were lower at P385.3 million compared to P490 million in the same period a year earlier.

?This was due mainly to the delayed collection of receivables from the National Power Corp. and payment for various spare parts and supplies valued at P70.9 million as part of the purchase and bid price of Panay and Bohol diesel power plants,? SPC Power explained.