SPC Power income down 14.5% to P794.3 M in 1st half
By Myrna M. Velasco – August 16, 2021, 3:09 PM
from Manila Bulletin
The consolidated net income of SPC Power Corporation dipped 14.5-percent to P794.3 million in the first six months of the year from a more robust earnings of P929.0 million in the same period last year.
The company said the decline in earnings had been mainly due to the 50-day maintenance shutdown of the Kepco-SPC (KSPC) coal-fired power facility – and that resulted in reduced earnings in the second quarter of this year. The KSPC plant is SPC’s joint venture with Korea Electric Power Corporation.
Given such development in the firm’s operations, SPC reported that its income in the second quarter dropped by 23.5-percent to P333.6 million from the year-ago level of P436.4 million in the same period.
SPC nevertheless qualified that aside from the knock-on effect of the KSPC plant’s maintenance, “all other business units in the group performed relatively better in the second quarter of 2021 as compared to the first quarter and second quarter of 2020.”
On the whole though, the firm specified that “with lower results, earnings per share declined to P0.53 in the first half of 2021 as compared with P0.62 per share in the year before.”
According to SPC, the power generation segment of its operations yielded 31.9-percent share in net income and that hovered at P253.7 million, which has been higher by 53.7-percent versus last year’s P165.1 million.
The distribution segment of the company’s business, on the other, had been decimated with a loss of P2.9 million, so far a reverse of the P14.4 million income logged in the prior year. “This was mainly due to temporary under-recovery of the cost of purchased power in the current year,” SPC explained.
On the revenue front, this climbed by 15.8-percent to P1.122 billion from P968.8 million in the same six-month period in 2020; and that was mainly traced to “higher volume of energy sold, higher pass-through cost of fuel and purchased power and higher prices in the WESM (Wholesale Electricity Spot Market).”
The company, however, noted that it incurred higher cost for services, as well as in administrative and general expenses; hence, that had driven down performance in the bottom line.
“Consolidated administrative and general expenses went up by 14.9-percent to P92.7 million in January-June 2021, due mainly to higher expenses for business development; personnel; and taxes and licenses,” SPC expounded.
In terms of cost of services, the company emphasized that this went up by 11.4-percent to P797.9 million in the first half of 2021 versus P715.9 million in the same period in 2020, “due mainly to costs arising from higher volume and prices of transactions.”
