Alcantara-led Alsons Consolidated Resources (ACR) reported an increase of over a tenth in its net income for 2024 due to high power demand, prices in the Wholesale Electricity Spot Market (WESM), and its entry into the retail electricity supply (RES) market.
In a disclosure to the Philippine Stock Exchange on Thursday, March 20, ACR reported that its net income throughout 2024 rose to ₱2.53 billion from ₱2.28 billion in 2023, which is an 11 percent increase year-on-year.
Philip Edward Sagun, deputy chief financial officer of ACR, explained that the company's net income was able to hurdle through the geological challenge faced in 2023, which affected its performance in the first few months of last year.
“In the first quarter of 2024, we faced disruptions caused by the 2023 Mindanao earthquake. Despite this challenge, we demonstrated resilience and achieved a strong recovery, closing the year with solid financial performance,” he said.
According to ACR, the growth in its financial performance was driven by the 237-megawatt (MW) Sarangani Energy Corp.
ACR also cited ancillary services agreements for the Western Mindanao Power Corp. in Zamboanga and Mapalad Power Corp. in Iligan were factors to its financial improvements.
Furthermore, Alsons launched its first renewable energy (RE) plant in Sarangani, the 14.5-MW Siguil hydropower plant, which played a role in last year’s financial growth.
“We are confident that our growth prospects will continue, fueled by the anticipated increase in power demand and our strategic focus on expanding our RES portfolio," Sagun elaborated.
Its new RES unit was able to secure major clients such as Holcim Philippines and Metro Retail Stores Group Inc. via a 43-MW combined contracted capacity.
“We remain steadfast in our commitment to expanding our RE portfolio, with several projects currently under development. This year, we are targeting to launch our first large-scale solar power project in Mindanao, marking a significant milestone in our sustainability strategy," Sagun added.