SPC Power 9-mo profit down 10%

MANILA, Philippines – SPC Power Corp. saw its net earnings fall by 10.3 percent in the nine months to September on account of weaker contribution from its power generation business and foreign exchange losses.

In a regulatory filing, SPC said it recorded a net income of P1.14 billion during the period, lower than the P1.27 billion in the same period in 2014.

“The lower net income was due mainly to lower earnings from the power generation business and lower equity share in the earnings of associates,” the firm said.

Its power generation business generated an income of P256.9 million in the January to September period, a 31.6 percent drop from P375.3 million last year.

SPC attributed the decline to the expiration of the operation, maintenance and service contracts (OMSCs) for the 153.1-megawatt (MW) Naga Power Plant in Cebu and the 650-MW Malaya Thermal Power Plant in Rizal in  Sept. 25, 2014 and Oct. 25, 2014, respectively.

Meanwhile, total equity share in the earnings of associates also decreased by 2.7 percent to P843.7 million during the period.

The firm said this was mainly due to unrealized foreign exchange losses from the revaluation of remaining dollar-denominated obligations.

“Excluding the non-recurring foreign exchange losses, total equity share in the earnings of associates would have amounted to P945.7 million in the first nine months of 2015, 5.2 percent higher year-on-year, as the associates actually chalked up higher earnings for the period,” SPC said.

Consolidated revenues also declined by 2.2 percent to P2 billion, as a result of the termination of the OMSCs but this was partially offset by higher sales through ancillary services, bilateral contracts and the spot market.