1 month ago
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The Securities and Exchange Commission (SEC) has approved the planned issuance of up to ₱1.6 billion worth of commercial papers by Alsons Consolidated Resources Inc. (ACR), the listed company of the Alcantara Group.
In a disclosure to the Philippine Stock Exchange (PSE), the firm said it had received the Certificate of Permit to Sell from the SEC for the planned issuance consisting of a base offer of ₱1.2 billion and an oversubscription option of up to P400 million.
ACR said this planned issuance represents the first tranche of commercial papers under its ₱3 billion commercial paper program.
The firm has received a high Issuer Credit Rating rating of PRS Aa minus (corp.), with a stable outlook, for the P3 billion commercial paper program from the Philippine Rating Services Corporation (PhilRatings).
A company rated PRS Aa (corp.) differs from the highest rated corporates only to a small degree and has a strong capacity to meet its financial commitments relative to that of other Philippine corporates. PhilRatings also included a minus (-) sign to further qualify the rating.
A stable outlook, on the other hand, is assigned when a rating is likely to be maintained and or to remain unchanged in the next 12 months.
PhilRatings said the rating reflects the start of full operations of the Mindanao-Visayas Interconnection Project (MVIP) and the commencement of the Wholesale Electricity Spot Market (WESM) and Retail Competition and Open Access (RCOA) in Mindanao.
Also considered is the company’s ability to establish joint ventures with strong partners for particular projects and its planned expansion projects which will further diversify its generation mix.
PhilRatings also factored in ACR’s continued recovery marked by its notable revenue growth and improved profitability and its satisfactory liquidity, supported by positive operating cash flows.
ACR reported a net income of P1.88 billion for the third quarter of 2024—a six percent increase compared to P1.77 billion in the same period last year, and a significant rise compared to the P1.06 billion in net income generated in the first half of last year.
Net income attributable to the parent company also showed a strong 20 percent year-on-year growth, climbing to P604 million for the first nine months of 2024.
"This quarter's financial performance stems from the stable profit margins across our power generation assets and the growing demand for electricity in the region. Additionally, the implementation of the ASPA of our Zamboanga and Iligan power plants has contributed to these favorable results," said ACR Deputy Chief Financial Officer Philip Edward B. Sagun.
He added that "the positive growth trajectory of ACR underscores our strong commitment to sustainable financial performance."
