Mirant sees flat income growth

Mirant Philippines Inc., a subsidiary of US-based power giant Mirant Corp., expects a flat income growth of about P8.6 billion for 2002 and 2003.

"More or less, we will incur roughly the same level of earnings as in 2001 of P8.6 billion," Mirant vice president for external affairs Paul Flake said, during a press briefing on the company’s new corporate social responsibility (CSR) project dubbed as "Carbon Sink."

Despite flat earnings projection for the two-year period, he said Mirant will continue to invest on CSR as part of its overall vision which is to share part of its earnings to promote the welfare of Filipinos and the environment, specifically those located near Mirant’s power facilities.

But apart from the CSR projects, he said Mirant is cautious in investing on other capital-intensive projects amidst the current uncertainties in the market.

"All of our investment decisions depend on market forces. We have to study carefully if the market needs it," he said.

Flake, however, said they are ongoing talks on the development of new and renewable energy (NRE) sources.

So far, he said the company is willing to allocate some P150 million a year to potential NRE projects. Normally, he said about P3 million to P7 million is being allotted for one hybrid system which can produce power from NRE sources like wind, biomass and solar.

He said Mirant has initially identified at least six potential areas where it can invest in NRE-related programs and projects. These areas include: Cagayan, Isabela, Quezon, Cebu, Iloilo, and Bicol.

At present, he said, the power firm is evaluating the technical and financial viabilities of these areas.

Meanwhile, Flake said they will invest about P30 million for the "Carbon Sink" project which will be the first-of-its kind in the country. – Donnabelle Gatdula