Del Callar said despite the controversy that has marred the wholesale electricity spot market (WESM) where a manipulation of power cost was uncovered, they expect to remain in the black at the end of the year.
The Power Sector Assets and Liabilities Corp (Psalm), which trades on behalf of Napocor, allegedly suffered losses in the first two months of WESM’s operations.
"We are still cautiously optimistic that we are sustaining our turnaround in 2006, regardless of the outcome of the WESM (irregularity)," del Callar said.
He said they exerted all efforts and resorted to cost-cutting measures that included the creation of new markets to boost revenues.
"Efficiency measures in terms of running the cheapest plant in all over the country. We have replaced diesel with alternative fuel. We're using heavily bio-diesel. We have stopped using a lot of this bunker oil even during the shutdown of the Malampaya so we did not anticipate any major expense in fuel with the Malampaya shutdown," del Callar said.
The Napocor introduced new and innovative products and markets such as the Enhanced One Day Power Sales Program and the Customer Choice Program to further improve its financial condition.
Del Callar said Napocor estimates a net income of P40 billion at the third quarter.
"The figures for the whole year representing our financial performance will still have to be validated by the Commission on Audit (COA), using very stringent rules and accounting procedures," del Callar said.
Last year, Napocor recorded a consolidated revenue of more than P86 billion, after almost a decade of losses. (MSN/Sunnex)
