SPC Power Corp. is banking on its expansion plans in coal, renewable energy battery energy storage projects to support its long-term growth prospects.
Company chairman Alfredo “Atom” Henares said SPC remains bullish on investments in renewables, setting its sight on solar power projects in Luzon and Visayas, development of battery energy storage system and participation in future competitive biddings for energy and ancillary service capacities.
“Despite the challenges, SPC is steadfast in its commitment to a sustainable future,” assured Henares.
He said power demand slowed down during the pandemic but he expects it to take up soon as the economy continues to reopen.
“So we do believe that demand will return and with the renewed hope for the new administration, we hope that demand will further increase. If that happens, there will be really a gap between supply and demand and hopefully our existing assets can address that demand profitability,” Henares said.
“That, together with our new projects, will bring us to a better future although I have to temper that with the fact that despite that gap, there’s really been a lot of increased competition in the business,” he said.
Henarez said increased competition could temper some returns that SPC had been earning previously.
SPC vice president and director James Villareal said the company is looking at expanding its portfolio and intensifying its marketing efforts to secure more power supply contracts.
The company reported a 26.8 percent drop in net profit last year due to the COVID-19 pandemic, the economic disruption brought by super typhoon Odette in the Visayas, the heart of its operations and the highly competitive environment of the power generation business in the country.
“Despite the decline in net income, the company maintains a solid financial position and material headroom which allows its flexibility to pay dividends, to maintain the performance of its existing assets and to take advantage of investment opportunities for growth,” he said.
Incorporated in 1994, SPC entered into rehabilitation, operation, maintenance and management agreement with the National Power Corp.
It successfully gained a foothold in the power industry business, through its subsidiary, SPC Island Power Corp. and its associates, Mactan Electric Co. and KEPCO SPC Power Corp., among others.
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