Alsons income surges 82% to P254 million in January-September

MANILA, Philippines - Alcantara-led Alsons Consolidated Resources (ACR) said its net earnings grew 82 percent in the first nine months of the year to P254 million on the back of a nine percent rise in revenues.

In a financial report submitted to securities regulators, ACR said total revenues reached P2 billion, with its energy subsidiaries accounting for 95 percent of total sales.

ACR said it expects its net income to hit P326 million by yearend, 17 percent higher than the previous year, as revenues are seen to grow eight percent to P2.67 billion. Earnings per share are likewise forecast to improve to P0.052 as against P0.044 in 2009.

The company expects to perform even better next year with net income seen to grow to P451 million on the back of P8 billion in projected revenues. The increase in revenue will mainly come from the energy subsidiaries that account for 98 percent of total sales. Earnings per share is also seen to rise to P0.072.

“Our company believes that the conditions are favorable to warrant the company’s expansion of its industrial activities at this time,” ACR chairman Tomas I. Alcantara said.

To take advantage of anticipated power shortage in the near future, ACR is undertaking an expansion program that will require investments of around $500 million from 2011 to 2013. This includes two of the three coal-fired power generating plants that the company intends to put up in Sarangani and Zamboanga del Sur provinces.

The first of the three plants is expected to have a financial closing and ground breaking by the second quarter of 2011. It is expected to be in commercial operation and contributing to the revenue and profits of the corporation by 2014.

“We believe that the establishment of the power plants in the region will address the current supply difficulties which will be more chronic in the medium term if only the existing capacities are relied upon,” said Alcantara.

He said funding for the expansion will come from shareholders’ equity and borrowings. ACR is preparing a financial plan to support its expansion and strengthen its financial standing.

The company is also looking at other options to raise funds, including tapping the peso market and issuing convertible bonds, he added.