The profitability of SPC Power Corporation (formerly Salcon Power) took steep plunge during the first half, with net income dropping to P192 million as compared to last year’s restated income of P289 million.

“The marked increase in revenues generated by the subsidiaries failed to fully offset the impact of substantial decline in foreign exchange gains and other income as well as the rise in the cost of services,” the company noted.

For the second quarter, SPC posted 46.5 percent drop in consolidated net income to P103 million from P194.4 million in the same period a year ago.

Without the effect of forex gains, the company’s profit during the quarter “should have been higher by P38.8 million or 67.4-percent compared to the same period last year due to better performance of the subsidiaries.”

The company said its acquisition of the Panay and Bohol diesel power plants somehow contributed to its sales growth, especially during the second quarter, logging 42.9-percent revenue jump to P428.2 million from the previous year’s P299.6 million.

Over the six-month stretch, the revenue growth was placed at 28.5-percent to P727 million from P565 million.

Despite shored up revenue stream though, SPC Power emphasized that higher cost of services and purchased power negated what could have been a positive impact its better sales performance
had on its bottom line. (MMV)