Alsons earns 41% more in H1

MANILA, Philippines - Alsons Consolidated Resources Inc., the publicly-listed holding company of the Alcantara Group, posted a 41 percent hike in profits in the first six months of 2015 on the back of robust sales of its power generation business.

The company told the Philippine Stock Exchange its January to June net income amounted to P218.9 million, an improvement from P155.5 million in the first half of 2014. 

Alsons booked revenues of P2.5 billion in the first half of 2015, identical to the company’s revenues for the same period in 2014, from its three operating diesel power plants in Mindanao.

These plants sold 12 percent more electricity during the period to 709 gigawatts per hour (gwh) in 2015 from 633 gwh in 2014, triggered by the continuous shortage of power in Mindanao.

Its operating power generation facilities are: the 103-megawatt (MW) diesel power plant of Mapalad Power Corp. in Iligan City; the 55-MW power plant of Southern Philippines Power Corp. in Alabel, Sarangani; and the 100-MW Western Mindanao Power Corp. plant in Zamboanga.

Alsons said gross profit in the first half of 2015 rose 27 percent to P972 million from P766 million in the same period last year due to lower cost of sales figures, driving gross profit margins to improve to 39 percent in 2015 from 31 percent in 2014.

The company said it is also developing coal-fired power facilities to help provide a stable source of baseload power for Mindanao and ensure long-term power security for the island.

These facilities are: the 105-MW San Ramon Power Inc. plant in Zamboanga City and the 210-MW Sarangani Energy Corp. plant in Maasim, Sarangani.

Between the two, the Sarangani plant is in the advanced stages of construction and will begin commercial operations within the first quarter of 2016 with an initial capacity of 105 MW and is expected to operate at its full 210 MW capacity in 2018.

In the same disclosure, Alsons said the Securities and Exchange Commission (SEC) approved its declaration of wholly-owned subsidiary ACR Mining Corp. (ACRMC) as a property dividend. 

Under the property dividend, shareholders of Alsons as of the projected record date will receive shares in ACRMC.

ACRMC currently has rights to a 75 percent participating interest in a joint venture to develop a mining project covering 1,547.32 hectares in Nabunturan, Davao del Norte and Maco, Compostela Valley.

The company said the actual distribution of the ACRMC shares can be made only after obtaining clearances and approvals from other regulatory agencies, which will be announced soon after gaining said clearances.