By Lenie Lectura – August 31, 2020
from Business Mirror

Alcantara-led Alsons Consolidated Resources Inc. (ACR) said over the weekend that the Securities and Exchange Commission (SEC) has given its nod to the company’s sale of commercial papers (CP) worth P1 billion to fund its working capital requirements.

The amount represents the second tranche of the company’s CP program of up to P2.5 billion registered with the SEC in 2018.

“The issuance will provide ACR-the publicly-listed company of the Alcantara Group, with interim funding for the company’s ongoing projects,” ACR said.

The second tranche of the ACR’s CP issuance received in April a “PRS A plus (corp.) with a Stable Outlook” issuer credit rating from the Philippine Rating Services Corporation (PhilRatings).

This means that ACR has an above average capacity to meet its financial commitments. A stable outlook, meanwhile, means the rating is likely to be maintained or to remain unchanged in the next 12 months.

Among the factors cited by PhilRatings as basis for the rating were “the positive growth prospects for Mindanao which will bring about an increasing demand for power,” and ACR’s “ability to establish joint ventures with strong partners for particular projects.”

ACR has a portfolio of 4 power facilities with an aggregate capacity of 468 megawatts (MW) serving over 8 million people in 14 cities and 11 provinces including key urban centers such as Cagayan de Oro, General Santos, Iligan, and Zamboanga City.

The company will focus on renewables for the long-term with 8 run-of-river hydroelectric power plants in its pipeline, one of which is currently under construction. Once completed and operational these hydro power plants will comprise the bulk of the company’s power facilities.

“In the next few years, in terms of the number of power facilities, renewable energy will constitute the largest segment in Alsons’ power portfolio,” said ACR Chairman and President Tomas I. Alcantara.

The company expects renewable energy’s contribution to ACR earnings will exceed 35 percent in the mid-term once the first 3 hydro plants are operational.

“In the long-term, when all 8 hydro plants are operating, we project that renewable energy contribution to ACR earnings will be around 45 percent,” said ACR Deputy Chief Financial Officer Philip Edward B. Sagun.

The company 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 of this year 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.

ACR earlier said its consolidated net earnings in the first half rose to P1.39 billion from last year’s P293.08 million. Net earnings attributable to the parent during the period climbed to P331.98 million, from P23.38 million in 2019.

ACR’s revenues in the first half went up to P5.28 billion, from P3.10 billion the previous year.

Leave a Reply

Your email address will not be published. Required fields are marked *