SPC Power Corp. has commenced preparation for its entry in the renewable-energy (RE) business, particularly hydropower.
On Tuesday the power firm said it is “holding exploratory talks with proponents of and conducting due diligence in a number of renewable-energy projects.”
No other details were given, except it signed a nondisclosure agreement over a hydropower project.
Last week SPC said it remained upbeat with its outlook of the energy sector, seeking new opportunities in RE projects including hydro-, geothermal- and biomass-power plants.
It said it has not abandoned its plans to pursue coal-fired power projects and power barges.
“Moving forward, the group will continue to focus on further improving efficiencies and leveraging existing-business assets to sustain or improve profitability,” SPC CFO Reynante del Rosario said. The company posted a new record level of consolidated income amounting to P1.8 billion in 2016, equivalent to P1.16 earnings per share. These resulted from the strong performance in each of the company’s core segments, power generation and distribution.
With its strong performance last year, its 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. SPC earlier acquired the 55-megawatt (MW) Naga land-based gas-turbine power plant in Colon, Naga, in 2009. That same year SPC 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 bid out the 153.1-MW Naga power plants located in the leased premises and on April 30, 2014, and 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.