Against a tide of falling profits due to the pandemic, Alsons Consolidated Resources Inc. (ACR) saw its first semester net earnings hit P1.4 billion, 375-percent higher compared to P293 million in the same period last year.
ACR said in a statement their bottom line was buoyed by the continuing operations of their power plants in Mindanao, where a relatively brief community quarantine period was imposed.
In the second quarter alone, the Alcantara group’s publicly listed firm’s net income shoot up by 472 percent to P1.08 billion from P188.72 million.
Revenues were up 70 percent year-on-year in the first half to P5.28 billion, and 64-percent up to P3.07 billion in the second quarter.
“For the rest of the year, we remain cautiously optimistic on the financial performance of the company,” ACR deputy chief financial officer Philip Edward B. Sagun said.
“We expect higher revenues and profit margins from the full commercial operations of the Sarangani energy plant,” Sagun said. “We will also reap the benefits of lower operating costs as we continue to maintain cost efficiency measures.”
He is referring to the 210-megawatt coal-fired power plant in Maasim town, which continued to be the key revenue and income driver for ACR.
The $570-million Sarangani facility—touted as the single largest investment in the Soccsksargen Region—started operations with the first 105-MW unit in 2016 and the second 105-MW unit in October 2019.
Aside from Sarangani province, the power complex supplies electricity to other key areas in Mindanao including General Santos, Cagayan de Oro, Iligan, Dipolog, Dapitan, Pagadian, Samal, Tagum, Kidapawan and Butuan.
Including the Sarangani coal-fired generators, ACR’s portfolio so far includes four power facilities with an aggregate capacity of 468 MW and which supply power to about eight million people in 14 cities and 11 provinces, including Zamboanga City.
The group is currently building a P4.5-billion 14.5-MW run-of -river hydroelectric power plant at Siguil River basin, also in Maasim.
The Siguil hydro power plant is expected to begin commercial operations in 2022 and will provide power to Sarangani, General Santos City and key towns of South Cotabato.
Also under development is the 105-MW coal-fired power plant of San Ramon Power Inc. in Zamboanga City, which is scheduled to begin operations in 2023.
ACR is also engaged in property development. It is developing a 26-hectare mixed-use township project in Davao City in partnership with Ayala group.