MANILA, Philippines — Alcantara-led Alsons Consolidated Resources Inc. (ACR) has received the approval of the Securities and Exchange Commission (SEC) to sell P1 billion worth of commercial papers (CP).
“The issuance will provide ACR with interim funding for the company’s ongoing projects,” the company said.
In February, ACR re-issued P694 million worth of commercial papers from the P1.5 billion first tranche of the fund-raising program.
At present, ACR has a portfolio of four power facilities with an aggregate capacity of 468 mega-watts (MW) serving over eight million people in 14 cities and 11 provinces including key urban centers such as Cagayan de Oro, General Santos, Iligan, and Zamboanga City.
“In the next few years, in terms of the number of power facilities, renewable energy will constitute the largest segment in Alsons’ power portfolio,” ACR chairman and president Tomas Alcantara said.
The company plans to focus on renewables for the long-term with eight run-of-river hydroelectric power plants in the pipeline, one of which is under construction.
Once completed and operational, these hydro power plants will comprise the bulk of the company’s power facilities.
“We expect that renewable energy contribution to ACR earnings will be more than 35 percent in the mid-term once our first three hydro plants are operating,” ACR deputy chief financial officer Philip Edward Sagun said.
“In the long-term, when all eight hydro plants are operating, we project that renewable energy contribution to ACR earnings will be around 45 percent,” he added.
ACR is also developing the 105-MW San Ramon Power Inc. (SRPI) baseload coal-fired power plant in Zamboanga City.
The engineering, procurement and construction contract for the SRPI plant will be signed within the third quarter with construction expected to begin in early 2021.
“The P16 billion SRPI plant is expected to begin commercial operations in 2023 to provide much needed baseload power to Zamboanga City and nearby areas,” the company said.
In the first semester, ACR’s earnings grew by over four-fold to P1.39 billion from P293.08 million in the first half of 2019.
Net earnings attributable to the parent in the first six months climbed to P331.98 million from P23.38 million in 2019, while revenues increased to P5.28 billion from P3.10 billion a year ago.