SPC Power going into renewables

MANILA, Philippines - SPC Power Corp. is entering the renewable energy business to sustain its profitability after it recorded an all-time high performance in 2016.

SPC chairman Alfredo Henares said the company has remained upbeat on its outlook of the energy sector, seeking new opportunities in renewable energy projects including hydro, geothermal and biomass power plants.

The company, however, will not abandon plans to pursue coal-fired power projects and power barges.

“Moving forward, the group will continue to focus on further improving efficiencies and leveraging existing business assets to sustain or improve profitability,” SPC chief finance officer Reynante Del Rosario said.

The company posted a record high consolidated income of P1.79 billion in 2016, up 18.4 percent from P1.51 billion in 2015.

“These resulted from the strong performance in each of the company’s core segments, power generation and distribution,” the firm said.

The companies’ financial condition improved with capital growing to P8.9 billion equivalent to P5.96 per share. Amid this strong performance, it declared a dividend payment of P0.40 per share.

Based on its annual report, the company operates the 146.5-megawatt (MW) Panay Diesel Power Plant located in Dingle, Iloilo and the 22-MW Bohol Diesel Power Plant in Tagbilaran City, Bohol through its subsidiary SPC Island Power Corp.

It also owns the 55-MW Naga land-based gas turbine power plant in Colon, Naga City, Cebu as well as the 32-MW Power Barge 104.

SPC has a team up with Kepco Philippines for a 200-MW circulating fluidized bed combustion coal plant in Naga completed in 2011.

Subsidiary Cebu Naga Power Corp. meanwhile, is building a 2x150-MW circulating fluidized bed coal-fired power plant in Cebu.

For its distribution business, it owns majority of Bohol Light Company Inc. which provides electricity services to Tagbilaran City, Bohol. It also has a 40-percent stake in Mactan Electric Co. Inc., which powers up Lapu-lapu City and the Municipality of Cordova in Cebu.

Earlier, SPC said it would start retailing electricity to large power uses as the electricity market transitions into an open, retail market under the retail competition and open access scheme.