Boracay Island's closure drove 25% sales volume growth for DMCI Power Corp
Higher tourist arrivals in Palawan and Oriental Mindoro generated more economic activities.
The six-month closure of Boracay Island not only pushed tourists to other destinations but also drove demand for Philippines’ off-grid electricity supplier DMCI Power Corp after recording a 25% sales volume growth to 308GWh in 2018 from 247GWh in 2017, BusinessMirror reports.
The firm also said stronger power demand across its key operating areas, on top of improved distribution and transmission-line systems, further drove its double-digit growth.
“The six-month closure of Boracay positively affected Palawan and Oriental Mindoro, which are known secondary tourism spots in the Philippines. Higher tourist arrivals generated more economic activities in these areas,” DMCI Power President Nestor D. Dadivas said.
Palawan sales reportedly showed the strongest growth at nearly 34% from 98GWh to 131GWh whilst Masbate energy sales jumped 12% to reach 111GWh from 99GWh in 2017. Registering the second-highest percentage growth in 2018 was Oriental Mindoro with a 32% leap from 50GWh in 2017 to 66GWh in sales in 2018.
On a standalone basis, DMCI Power’s net income surged 30% YoY from $6.81m (P359m) to $8.83m (P465m).
“Our business has long-term contracts, so it rides on the long-term economic growth of the island. That alone is a good basis to say if we will have a better year or not,” Dadivas said.