MANILA, Philippines - Trans-Asia Oil and Energy Development Corp., the energy arm of the Phinma Group, registered a 74-percent surge in net profits in the first half of 2015 due to the strong performance of its power generation business after a power project started commercial operations in April.
In a statement, Trans-Asia said it net income reached P377 million in the first semester of the year from P216 million in the same period in 2014.
The company said growth was driven by its power business, which doubled its revenues from generation to P753 million in the second quarter from P369 million a year earlier.
Meanwhile, net revenues from electricity trading in the spot market grew 21 percent to P398 million in the second quarter from P329 million in 2014 due to lower cost of power from the Wholesale Electricity Spot Market (WESM).
Trans-Asia attributed the rise in revenues over the P1-billion mark to its increased generation capacity with the completion of the first 135-megawatt (MW) unit of South Luzon Thermal Energy Corp. (SLTEC).
Starting commercial operations last April 24, SLTEC is a circulating fluidized bed coal-fired power plant in Calaca, Batangas. It is a 50-50 joint venture of Trans-Asia with AC Energy Holdings Inc. of the Ayala Group.
“We expect to continue the substantial growth of our company’s bottom line, especially now that we have a baseload plant, in the form of SLTEC that can provide a steady revenue stream for the company, reliable electricity supply for our customers, as well as greater utilization of our peaking plants,” Trans-Asia president Francisco Viray said.
“We are hopeful that we can sustain this momentum with the commercial operations of SLTEC Unit 2, which would add another 135 MW, before the year ends,” he added.
The company said construction of SLTEC’s second 135-MW unit is well underway and is in the final stages of completion.
The recent takeover of Power Barges 101, 1012 and 103 from the state-run Power Sector Assets and Liabilities Management Corp. (PSALM) will help in sustaining the company’s performance for the rest of the year.
With a combined capacity of 96 MW, the barges are expected to contribute to the energy needs in the Visayas, where they will be stationed.
Trans-Asia has also started laying the ground work for additional projects to address the country’s power needs for the 2018-2023 period.
Other projects in the pipeline include the expansion of the 20-MW geothermal plant under Maibarara Geothermal Inc. (MGI) by another 10 MW. It is expected to be online by the first quarter of 2017.
MGI is Trans-Asia’s joint venture with PetroEnergy Resources Corp. and PNOC Renewables Corp.
“Trans-Asia intends to pursue projects to bulk up its generation portfolio to cater to more customers. We need to increase our generation capacity to coincide with the growing power demand and to become a key player in the industry,” Viray said.