SPC Power Corporation has defied a 34.7% revenue drop to deliver a 106.5% increase in consolidated total comprehensive income, reaching P234.8 million in Q1 2025, thanks to aggressive cost-saving initiatives. The company’s operational efficiency has cemented its resilience in the competitive Philippine energy market.
In a SEC filing dated May 7, 2025, the company reports, “The Consolidated total comprehensive income amounts to P234.8 million for the period ending March 2025, 106.5% remarkably better compared to previous year’s level of P113.7 million.” This leap was driven by an 84.9% reduction in cost of services, from P563.8 million in Q1 2024 to P84.9 million in 2025, primarily due to lower fuel, lubricant, and maintenance expenses.
“This was largely due to the cost-saving initiatives in some of the major costs of operations in the current year,” the report notes.
The revenue decline to P372.7 million stemmed from expired Ancillary Services Procurement Agreements, which curtailed energy dispatch despite efforts to capitalize on the Reserve Market and Wholesale Electricity Spot Market. SPC Power, a key player in power generation with subsidiaries like SPC Island Power Corporation and Cebu Naga Power Corporation, has focused on optimizing its coal-fired and diesel power plants to maintain profitability.
Looking ahead, SPC Power’s robust liquidity, with cash and cash equivalents up 6.6% to P4,965.3 million, positions it to explore new opportunities and fund capital projects. The company’s solvency ratio improved to 0.39 from 0.12, signaling strong debt management. With no major contingencies or capital commitments reported, SPC Power is poised to leverage its cost efficiencies to navigate market challenges and pursue growth in power generation.
Will SPC Power’s cost-cutting prowess drive future growth in the energy sector? Join the conversation. Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates.
There are no comments
Add yours