Phoenix Power Company has achieved an excellent operational performance with the Sur Power Plant demonstrating a commercial availability of 99.70 per cent in 2018
Phoenix Power Company incorporated in 2011, owns and operates the 2000 MW Sur Independent Power Plant, located in the Sur industrial area. Phoenix Power currently generates its revenues pursuant to a 15-year term power purchase agreement with Oman Power and Water Procurement Company and purchases gas from the Ministry of Oil and Gas under a 15-year natural gas sales agreement. The operations and maintenance of the plant is subcontracted to Phoenix Operation and Maintenance Company under a 15-year operation and maintenance agreement.
During the year 2018, the company has achieved an excellent operational performance with the Sur Power Plant demonstrating a commercial availability of 99.70 per cent, the key parameter to be considered when assessing the revenues generated during the period. This figure compares to 99.39 per cent in 2017.
The plant dispatched an aggregated net power volume of 8453.80 GWhrs (an increase of 8.2 per cent on the 7809.78 GWhrs dispatched in 2017) which represents a load factor of 48.56 per cent when averaged over the year, compared to a load factor of 44.81 per cent in 2017.
The company generated revenues of RO134.59mn in 2018 which were higher than the RO128.40mn generated in 2017 mainly due to improved availability and increased dispatch. Costs in 2018 were RO98.70mn which were higher than the RO92.89mn spent in 2017 mainly due to higher dispatch resulting in higher fuel costs.
The net profit of the company was RO12.92mn in 2018 which was higher than RO9.98mn earned in 2017 mainly due to lower tax expense. Tax expense was RO2.83mn in 2018 which is lower than RO8.92mn in 2017, noting a one-off impact in the change of tax law (deferred tax liability for prior year’s) amounting to RO5.19mn was recognised in 2017. The company paid a dividend of Bzs 5.0 per share in 2018 compared to Bzs 7.9 per share in 2017.