SPC POWER Corp.’s attributable net income went down by 25.74% year on year to P1.19 billion in 2021 due to its weaker fourth-quarter performance.
In a disclosure, SPC Power said its net income translated to earnings per share of 81 centavos from P1.07 in 2020 and return on equity of 11.99% versus 15.8% the prior year.
The company said its full-year income was dragged down by its financial performance in the last quarter of 2021. However, no fourth-quarter figures were provided.
SPC Power’s end-September 2021 net income was at P1.38 billion, higher than the P1.31 billion in the comparable year-ago period.
The company said its performance in the fourth quarter was hit by the delayed recovery of purchased power costs following Typhoon Odette, since the Wholesale Electricity Spot Market’s (WESM) operations in the Visayas grid only resumed on Jan. 17.
It also recorded lower revenues due to cheaper sales of power generated and sold to distribution utilities and electric cooperatives, as well as the expiry of power supply contracts, which were not offset by increased capacity sold to WESM.
Due to higher pass-through costs of fuel and power, SPC Power logged operation costs that were higher than its revenues, slashing its gross margin by 6.3% to P516.9 million in 2021.
“The power distribution business segment bore the brunt of the typhoon damage,” the company said, citing a 68.9% decline in the segment’s contribution to its net income.
Meanwhile, its power generation business segment’s earnings also dropped by 17.8% to P317.8 million.
SPC Power’s shares went down by 20 centavos or 1.38% to close at P14.30 each on Tuesday. — R.C.S. Agustin
