PSALM revenue hits P98.4 billion in 2019

MANILA, Philippines — State-run Power Sector Assets and Liabilities Management Corp. (PSALM) generated P98.37 billion in revenue last year, enabling the agency to cut its financial obligations higher than its target, the Department of Finance (DOF) reported yesterday.

Citing a report from the state-owned firm, the DOF said PSALM was able to raise about P98 billion from privatization proceeds, power sales, collections from delinquent and overdue accounts and from the collection of Universal Charges (UCs).

The DOF said P11.76 billion of the total amount came from power sales from customers, representing a 93.5 percent collection efficiency against the target for the whole year.

PSALM was also able to raise P4.32 billion in revenues from overdue and delinquent accounts by offering flexible payment schemes through restructuring agreements or special payment arrangements. This surpassed the agency’s target of P4.12 billion.

“These flexible payment schemes encouraged entities and electric cooperatives to viably settle their outstanding obligations,” PSALM president Irene Joy Besido-Garcia said in a report to Finance Secretary Carlos Dominguez.

The state firm’s privatization efforts also contributed P74.66 billion in revenue, while UC for stranded contract costs and stranded debt brought in another P6.5 billion.

Quoting PSALM, the DOF said the state-run corporation was able to lower its overhead expenses to 4.67 percent in relation to its total income due. This is better than the 2019 goal of 8.92 percent.

As a result of its liability management strategies, PSALM was able to cut its financial obligations by 6.05 percent or P27.18 billion to P422.01 billion in 2019 from P449.19 billion in 2018, the DOF said. This is likewise higher than target reduction of P15.21 billion.

PSALM also achieved an EBITDA margin of 14.07 percent, the DOF said.

Meanwhile, Garcia also reported that PSALM was able to collect P20.115 billion out of P20.51 billion in receivables, translating to a collection efficiency of 98.07 percent.

PSALM also disbursed P13.24 billion to the National Power Corp. and P19 million to renewable energy developers from the proceeds of the UC-missionary electrification charge collections.

For 2020, Garcia said PSALM is targeting to reduce its debt by P11.943 billion.