By Lenie Lectura – June 1, 2017
from Business Mirror
SPC Power Corp. is seen expanding its power-generation portflio to include renewable energy.
“SPC has remained upbeat with its outlook of the energy sector, seeking new opportunities in renewable-energy projects including hydro, geothermal and biomass power plants. It has not, however, abandoned its plans to pursue coal-fired power projects and power barges,” SPC Chairman Alfredo L. Henares said.
SPC acquired the 55-megawatt (MW) Naga land-based gas turbine power plant in Colon, Naga, in 2009. In the same year, it entered into a land-lease agreement with the Power Sector Assets and Liabilities Management Corp. (PSALM), which included SPC’s right to top the price of a winning bidder for the sale of any property in the vicinity of the leased premises.
PSALM subsequently bidded out the 153.1-MW Naga power plant located in the leased premises and on April 30, 2014, after two failed biddings, the agency issued a notice of award to Therma Power for submitting the highest bid.
Therma Power offered a bid of P1.088 billion but SPC exercised its right to top and matched the bid with an additional P54 million, or a total of P1.143 billion. PSALM then awarded the contract to SPC, despite Therma Visayas’s objections.
A petition with the Supreme Court (SC) was then filed seeking to enjoin PSALM from awarding the Naga plant on the grounds that SPC’s right to top was void. The SC reinstated the notice of award to Therma Power.
In facing the dynamic challenges in the energy sector, SPC CFO Reynante del Rosario said: “Moving forward, the group will continue to focus on improving efficiencies and leveraging existing business assets to sustain or improve profitability.
The company posted a record consolidated income amounting to P1.8 billion in 2016, equivalent to P1.16 earnings per share, on the strong performance of the company’s core segments—power generation and distribution.
Thus, the companies’ financial condition improved with capital growing to P8.9 billion equivalent to P5.96 per share.
SPC’s subsidiaries are Bohol Light Co. Inc., SPC Island Power Corp., SPC Malaya Power Corp., SPC Electric Co. Inc. and SPC Light Co. Inc.
SPC also maintains equity investments in Mactan Electric Co. Inc. and Kepco SPC Power Corp.