Alsons hikes capital of mining unit

MANILA, Philippines - Alsons Consolidated Resources Inc. (ACR), the publicly listed holding company of the Alcantara Group, has approved an increase in the authorized capital of wholly owned subsidiary ACR Mining Corp. to P500 million from just P5 million.

In a disclosure to the Philippine Stock Exchange, ACR said the increase in the authorized capital stock would enhance the subsidiary’s financial capability in pursuing opportunities in the mining industry, starting with the development of its mining assets in Compostela Valley in Mindanao.

This developed as ACR reported a 66 percent increase in revenues in the nine months to September to P3.9 billion, from P2.3 billion in the same period last year.

The increase in revenues came from the 103-megawatt Mapalad Power Corp. (MPC) diesel plant in Iligan City, which has been operating for over a year since the company re-acquired and rehabilitated the facility early last year.

At present, the facility provides power to the cities of Iligan, General Santos, Zamboanga, Butuan, Bayugan, Dapitan, Dipolog and Pagadian as well as key areas in the provinces of Sarangani, South Cotabato, Agusan del Norte, Agusan del Sur, Zamboanga del Norte and Zamboanga del Sur.

Despite higher revenues, however, the company posted a consolidated net income of P606.7 million during the period, 24 percent lower than the P793.2 million recorded a year ago.

The decline in net income stemmed from higher interest expenses and foreign exchange losses.