SPNEC logs P12.39-M net loss
SP New Energy Corp. (SPNEC) had a rough start to 2025, with the group posting a net loss in the first three months. SPNEC is a subsidiary of Meralco PowerGen Corp. (MGen).
In a disclosure, the company said its losses hit P12.39 million from a profit of P156.67 million a year ago.
This, as SPNEC saw its debt-related costs surged by 73 percent to P118 million against the previous P68.17 million.
It said the jump in finance costs was “primarily due to short-term borrowings by TNI (Terra Nueva Inc.).”
General and administrative expenses likewise climbed 22.4 percent to P120.14 million from P98.09 million.
The group also logged losses of P688.7 million following unfavorable fluctuations in foreign exchange rates. This affected its cash flow hedging activities during the period.
Businesses use the cash flow hedge approach to protect themselves from currency fluctuations.
Meanwhile, SPNEC’s revenues, which came from power sales, dipped by 2.5 percent to P335.604 million from P344.389 million.
SPNEC serves as the renewable energy vehicle of MGen in developing a solar project in Luzon. It is touted to be the world’s largest solar farm once it fully launches by 2027.
MGen is the power generation arm of Manila Electric Co.
With storage
The P200-billion MTerra Solar project is designed to have 3,500 megawatts (MW) of total capacity. It will also have a massive 4,500 megawatt-hour battery energy storage system.
The first phase, with a target capacity of 2,500 MW, is eyed for completion by 2026. The second phase, with a capacity of 1,000 MW may go online by 2027.
Last March, UK-based investment firm Actis completed its acquisition of a 40-percent stake in MTerra Solar. This translated to a $600-million capital boost for the project.
The group also closed in April the biggest syndicated loan yet in the Philippines, worth P150 billion.
The loan deal was backed by the country’s major lenders. These include BDO Unibank Inc., Security Bank Corp., China Banking Corp., Philippine National Bank, Metropolitan Bank & Trust Co., and Bank of the Philippine Islands.
