Alsons sees lower profit on forex losses

Alsons Consolidated Resources Inc. (ACR), the publicly-listed company of the Alcantara Group, said its consolidated net income declined by 5 percent to P691 million in 2015 from P727 million in 2014.

The company said this was due mainly to foreign exchange losses arising from the dollar-denominated loans carried at the parent level.

Alsons’ three diesel-fired power plants in Mindanao sold 1.4 billion megawatt-hours of electricity to its various customers in 2015—a 15-percent jump from the 1.2-billion megawatt-hours of power dispatched and sold by ACR’s plants in 2014.

ACR’s diesel plants are: the 103-MW Mapalad Power Corp. diesel plant in Iligan City, the 55-MW Southern Philippines Power Corp. facility in Alabel, Sarangani and the 100-MW power plant of the Western Mindanao Power Corp. in Zamboanga City. All three diesel plants of Alsons have significantly contributed to alleviating the power shortage in Mindanao.

Despite the increase in electricity sold in 2015, lower price indices resulted in almost flat revenue in 2015 of P5 billion, compared to P5.1 billion generated in 2014. The company’s operating profit in 2015 was 30 percent better at P1.5 billion thn the previous year’s operating profit of P1.1 billion.

Due to the non-recurring expense caused by the depreciation of the Philippine peso, ACR’s net income attributable to the parent declined to P189 million in 2015 from P359 million in 2014. Without this non-recurring expense, ACR’s net income attributable to the parent would have been P406 million or 16 percent better than the previous year’s P359 million.

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