Alsons Consolidated bares 37% drop in 2008 profit

MANILA, Philippines - Alsons Consolidated Resources Inc. reported a 37.5 percent drop in net profit last year due to higher provision for income tax.

In a disclosure to the Philippine Stock Exchange (PSE), ACR said revenues rose five percent to P2.63 billion while gross profit remained almost the same as the previous year as cost of goods sold went up 10 percent due to the higher turnover of real estate properties.

ACR said interest expenses declined by 56 percent to P107 million with the settlement of debts.

As of end-December last year, ACR had total assets of P1.513 billion, up five percent from P14.43 billion in 2007.

Total liabilities, on the other hand, decreased seven percent to P3.53 billion.

ACR is pushing through with its proposed P2 billion bioethanol plant with the financial closing of the project targeted by the end of the year.

The project which will be done in partnership with the Electricity Generating Public Company of Thailand (EGCO) and Toyota Tsusho, is intended to produce 100,000 liters per day.

The plant is expected to break ground in the middle of next year.

Funding for the project will be supported by equity and borrowings. The International Finance Corp., the private sector financing arm of the World Bank, has expressed interest to extend a loan to help jumpstart the project.

ACR hopes to capitalize on the anticipated growth in demand for fuel with the mandatory five percent blend of bioethanol by May 2009. Based on a forecast by the Department of Energy, domestic bioethanol demand is seen to reach 309 million liters per annum by 2009 and will increase further to 664 million liters by 2011 and 713 million liters by 2013.

The country needs around 15 to 20 ethanol plants by 2011 to meet the mandatory blend requirement of the Biofuels Act of 2006.

ACR is studying options on its possible investment in a 200 megawatt coal-fired power plant in Maasim, Sarangani. The project, in partnership with Egco, estimated to cost at least $450 million.

The proposed coal-fired power plant aims to help stabilize the Mindanao power grid by 2011, with two incremental expansions of 350 MW each within 15 years from the plant’s full operation.

When completed, the power plant will supply 15 percent of the region’s power needs.