MANILA, Philippines - Earnings of Mindanao-based Alsons Consolidated Resources Inc. (ACR) nearly halved in the January to September period on the absence of non-recurring gains which it booked last year.
Despite the decline, the company expects to hit its earnings guidance of more than P450 million for the entire year.
In a disclosure, ACR said its net income sank to P239.6 million from P402.3 million a year ago.
However, consolidated core net income, which strips out currency swings and non-recurring gains, grew 17 percent to P747 million in the nine-month period from P640 million a year ago.
Last year, Alsons booked a one-time gain from the collection of insurance claims by a subsidiary.
In the nine-month period, ACR recorded a nine-percent increase in total revenues to P2.27 billion from P2.08 billion.
“The biggest contribution to the holding company’s revenues came from ACR’s power generation subsidiaries based in Alabel, Satangani and Zamboanga City,” ACR said.
ACR currently has a total generating capacity of 155 megawatts (MW).
Power and water sales of ACR’s utility subsidiaries at the Lima Technology Center in Malvar, Batangas jumped 19 percent to P603 million from P505 million from a year ago.
“Although the expected operation of the Iligan diesel power plant may not be able to significantly contribute this year, ACR still expects it can catch up and hit its targeted net income of P456 million by yearend,” the company said.
Last month, ACR bagged preliminary approval from the Commission on Audit for the P300-million purchase of the 100-MW Iligan diesel power plant.
The Iligan diesel plant, which was last operated in 2010, will be sold to ACR subsidiary Conal Holdings Corp. after it was acquired by the local government due to tax delinquency.
The energy and power businesses of ACR, the publicly listed holding company of the Alcantara Group, are held by Conal Holdings, Mapalad Power Corp., Sarangani Energy Corp., Alsing Power Holdings, Inc., Alsons Power Holdings Corp., Northern Mindanao Power Corp. and Alto Power Management Corp.
ACR is finalizing a partnership deal with Japan’s Toyota Tsusho Corp., which will buy a 25-percent stake in power producer Sarangani Energy.
Toyota Tsusho has is a 25-percent stake in Sarangani Energy, which plans to build a 105-MW coal plant.
The Alcantara Group is also into real estate, aquaculture, agribusiness and services primarily focusing on Mindanao.