Davao Light projects to cost P2 billion
Subscribe Now January 06, 2014 at 08:09am
The capital expenditure, approved by the Energy Regulatory Commission (ERC) on Dec. 2 last year, will be funded largely by borrowing from the Land Bank of the Philippines.
About half of the planned expense will be used to upgrade distribution lines as the company is set to purchase about 100 megawatts (MW) from sister company, Therma South, Inc., which is expected to complete the first phase of its 300-MW coal-fired power plant by the first quarter of 2015.
Both are subsidiaries of listed Aboitiz Power Corp. (AboitizPower).
The balance of the budget will be used to build three new substations and rehabilitation of three existing ones, land acquisition, as well as construction new buildings, among others.
Davao Light ended 2012 with a net income of P1.37 billion, about 6% more than its P1.29-billion profit by the end of 2011.
In approving Davao Light’s budget and plans, ERC cited the company’s capability to pay its obligations and noted that its “high asset utilization over the years 2011-2012 indicates potential in generating earnings in proportion to resources placed in business operations.”
The regulator added that implementation of the projects “will redound to the benefit of its consumers in terms of continuous, reliable and efficient power supply.”
AboitizPower shares shed 10 centavos or 0.29% to close P33.90 apiece on Friday last week from P34.00 each on Thursday.
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