November 24, 2017, 5:09 pm
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Off-grid power supplier records flat sales

Reduced energy dispatch to Mindoro and Palawan led off-grid energy supplier, DMCI Power Corp. (DPC),to record flat electricity sales volume for January to September 2017 at 181.43 gigawatt hours (GWh).

Energy sales to Palawan Electric Cooperative dipped one percent from 69.96 GWh to 69.32 GWh, while volume sold to Oriental Mindoro Electric Cooperative contracted by six percent from 40.98 GWh to 38.38 GWh. 

Only Masbate showed growth, as sales volume to Masbate Electric Cooperative grew by a modest four percent from 70.82 GWh to 73.73 GWh.

DPC said the marginal decline in total sales volume was offset by a 19 percent increase in average selling price, primarily driven by higher fuel prices.

Consolidated revenues for the period rose 18 percent from P1.7 billion to P2 billion, while net income dropped five percent from P341 million to P324 million, following the expiration of DPC’s income tax holiday (ITH) for its Masbate operations in September 2016.

“Despite our flattish sales and ITH expiration, our profitability remains strong. Our pre-tax earnings actually grew 11 percent year-on-year,” Nestor Dadivas, DPC president,said in a statement.

Earnings before interest, tax, depreciation and amortization for the nine-month period rose by 18 percent to P554 million,from P469 million in the same period last year.

Earlier, the company said its investments stood at P3.5 billion from 2010 to 2016, with capacity of 55 megawatts (MW) delivered to local cooperatives in remote areas of the country.

“We have been investing heavily in these far-flung areas the past couple of years because we believe in their growth potential. Now we are posting double-digit growth because of our investments,” Dadivassaid recently.

Last year, DPC said it is eyeing to put uprun-of-river hydropower plants in Cagayan de Oro and Sultan Kudaratof up to 100 MW which could reach a total project cost of P14 billion.

Dadivas said DPC is specifically looking at hydro among other renewable energy sources as it has better capacity factor than solar and biomass plants. If the plans proceed, this would be the company’s first venture into hydro plants.

DPC currently operates and maintains bunker-fired power plants and diesel generating sets in parts of Masbate, Oriental Mindoro, Palawan and Sultan Kudarat. It is the energy development arm of the DMCI Holdings Group, which is also involved in construction, residential development as well as coal and nickel mining businesses.
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