Synergy Grid sets higher cash dividends

MANILA, Philippines — Listed Synergy Grid and Development Philippines Inc. (SGP) has declared a higher cash dividend totaling P1.158 billion, to be paid out to shareholders next month.

SGP said its board approved its first quarterly cash dividend at P0.22 per share, 10 percent higher than the P0.20 per share dividend totaling P1.053 billion distributed and paid out in January.

The cash dividends will be payable on April 26 to stockholders on record as of April 6.

“The distribution of dividends continues SGP’s commitment to its partner investors. Investments in SGP will contribute to the development of the nation’s sole transmission network operated and maintained by the National Grid Corporation of the Philippines (NGCP),” SGP chairman Henry Sy, Jr. said in a statement.

SGP indirectly controls 60 percent of the outstanding capital stock and owns an effective interest of 40.2 percent of National Grid Corp. of the Philippines (NGCP), its sole operating asset.

The NGCP holds the sole and exclusive concession and franchise for the operation of the Philippines’ transmission network, linking power generators and distribution utilities to deliver electricity to power distributors and cooperatives nationwide.

In the next 13 years, NGCP has committed to invest P440 billion across 211 projects, which are aimed to support the growing electricity demand in the country and to make the country’s power backbone continuously reliable.

The massive multi-year investment will support the expected growth in demand at an annual average growth rate of 6.23 percent for 2021 to 2025, 6.73 percent for 2026 to 2030, and 6.49 percent for 2031 to 2040, as detailed in the 2021 consultation draft of the Transmission Development Plan (TDP).

The TDP outlines NGCP’s plans to expand, develop, and monitor the grid throughout the country.

SGP vice chairman Robert Coyiuto Jr. said the NGCP has made substantial achievements in terms of improving the country’s power transmission grid.

“Last year, NGCP successfully completed several components of the Mindanao-Visayas Interconnection Project (MVIP), particularly the submarine cable and cable terminal stations completed last November 2021, and the Lala-Aurora 138-kilovolt (kV) transmission line energized on Feb. 19. NGCP also recently completed restoration works on Typhoon Odette affected transmission lines in Visayas, among other accomplishments,” he said.

As of Jan. 10, NGCP successfully energized all 69-kV affected lines in the province of Bohol.

Earlier, NGCP restored power transmission services to the affected provinces of Northern Samar, Samar, and Biliran; Eastern Samar; Leyte; Negros Occidental; Negros Oriental; Agusan del Norte and Agusan del Sur and Surigao del Norte and Surigao del Sur.

Power transmission services were also restored in Southern Leyte on Jan. 8.

The permanent restoration of the toppled special towers in Bohol is set to be completed this April.

Last November, SGP conducted a follow-on offering of 1.05 billion primary shares with an overallotment option of up to 101 million secondary shares at P12 apiece.

The offering was in compliance with NGCP’s franchise undertakings, which include the offer at least 20 percent of its outstanding capital stock through the completed share swap and FOO.

NGCP’s franchise under Republic Act 9511 requires the grid operator to comply with its statutory requirement to offer at least 20 percent of its outstanding capital stock to the public within 10 years from Jan. 15, 2009. This has been extended to November this year after NGCP’s request.

Under Section 8 of its franchise, “the listing on the [Philippine Stock Exchange] of any company which directly or indirectly owns or controls at least 30 percent of the outstanding shares of stock of NGCP shall be considered full compliance with this listing requirement.”

SGP owns 40.2 percent of NGCP after the former raised its authorized capital stock from P50 million to P5.05 billion and issued 4.1 billion common shares of stock in exchange for shares of stock in OneTaipan Holdings Inc. and Pacifica21 Holdings Inc.

One Taipan is owned by Sy and Pacifica21 by Roberto Coyiuto Jr., two companies that control the NGCP.

NGCP holds the 25-year concession contract to operate the country’s power transmission network.

It is 60 percent controlled by Filipino-owned entities One Taipan Holding Corp.’s Monte Oro Grid Resources led by Sy and Pacific21’s Calaca High Power Corp. led by Coyiuto. The remaining 40 percent is held by State Grid Corp. of China as its technical partner.