SPC Power Corp. saw its first-quarter attributable net income drop 72.6% to P126.72 million from P462.49 million in the same period a year ago, as earnings of investee companies contracted.
“The biggest component of the reduction in the group’s consolidated net income was from the equity share in the earnings of investee companies which contracted to P55.8 million in the first quarter of 2022, from P371.3 million in the same period a year earlier,” the company said in its first-quarter report released on Thursday.
One of the investee companies is KEPCO SPC Power Corp., which saw its net income decrease by 92% in the first three months of the year.
SPC Power attributed this to “advance preventive maintenance service conducted on power generating units and he emerging challenging situation in renewing power supply contracts as the increase in spot sales could not offset the decrease in sales to distribution utilities/electric cooperatives previously under power supply contracts.”
At the same time, the company noted that operations of its other business units continued to be partially affected by the spillover impact of Typhoon Odette.
The company saw its revenues grow 45.2% to P676.4 million in the first quarter from P464.5 million in the prior year, due to the higher pass-through cost of fuel.
Cost of services increased 58.3% to P556.70 million from P351.6 million previously.
Higher expenses for business development resulted in 77.4% increase in administrative and general expenses.
“The group is encouraged by signs of post-pandemic and post-Typhoon Odettte recovery,” the company said.
“It is looking toward a renewed growth momentum in the succeeding quarters by continuously improving efficiencies, leveraging existing business assets, and widening the market coverage beyond the existing customers and in areas outside of the Visayas region while in pursuit of new markets and customer segments,” it added.
SPC Power shares closed 1.19% lower at P13.28 apiece on Thursday. — Arjay L. Balinbin