Mirant RP assets highly profitable
Thursday, September 21, 2006
By MYRNA M. VELASCO
Mirant Asia Pacific Ltd., which holds interests in the US firm’s Philippine power generation portfolio, is expected to corner a windfall of US$ 5.3258 billion (roughly P272 billion) in operating income from next year until the end of its Build-Operate-Transfer (BOT) contract with state-owned National Power Corporation.
Of these estimated contracted profitability, however, parent firm Mirant Corporation wants to immediately cash in $ 2.8 billion to $ 3.0 billion from the scheduled sale of equity shares for its Philippine assets; technically leaving the buyer with a relatively thin margin for the remaining 19 years of cooperation of the power facilities — primarily the 1,218-megawatt Sual and 735-MW Pagbilao plants.
If numbers were to be rolled taking reference from earnings before interest, taxes, depreciation and amortization (EBITDA), the estimate would reach as high as $ 7.588 billion for years 2007 to 2025, as could be gleaned from the Mirant Information Package (MIP) issued by sale advisor Credit Suisse to prospective buyers.
It was further culled that the company posted $ 315.046 million operating income in 2005, and is seen inching up to $ 338.949 this year. In 2004, operating income was at $ 321.987 million, a drop from $ 347.063 million in 2003.
The revenue buildup from future operations, as jotted down in the MIP are as follows: $ 350.868 million (2007); $ 365.598 million (2008); $ 360.140 million (2009); $ 343.887 million (2010); $ 366.056 million (2011); $ 367.769 million (2012); $ 363.346 million (2013); $ 351.211 million (2014); $ 333.586 million (2015); $ 321.379 million (2016); $ 315.751 million (2017); $ 302.594 million (2018); $ 284.690 million (2019); $ 243.032 million (2020); $ 215.086 million (2021); $ 189.269 million (2022); $ 132.340 million (2023); $ 79.877 million (2024) and $ 39.402 million (2025).
It was noted that the numbers just validated the low indicative bids earlier submitted to Mirant, in spite of the wish to rake in exorbitant proceeds from the sale.
The forecasted EBITDA for the year is $ 425.729 million, posting a significant climb from what was logged in 2005 at $ 387.756; while 2007 indicates a higher figure of $ 447.941 million.
The Credit Suisse document has shown that the bulk of generated revenues are from capacity payments for contracted volume of the power plants paid to Mirant by NPC reaching $ 225.526 million last year and this is seen to go up to $ 226.359 million this 2006. Finance lease income was also noted among the major revenue maker contributing $ 213.917 million in 2005 but is projected trimmed down to $ 210.486 million this year.
Additional turnover were also recorded from Mirant’s 20 percent equity in the 1,200-MW Ilijan natural gas-fired facility, logged at $ 9.902 million in 2005, dropping slightly from $ 10.697 million in 2004.
posted by philpower @ 3:48 PM,
