State-run Power Sector Assets and Liabilities Management Corp. (PSALM) is looking to reduce its debt from P355.2 billion to P335.89 billion by the end of June.
PSALM president-CEO Irene Joy Besido Garcia said the agency had close to P538 billion in debt before President Rodrigo Duterte assumed office in 2016.
Garcia said in her report to Finance Secretary and PSALM board chairman Carlos Dominguez III that PSALM was able to trim its financial obligations by P26.47 billion—paying off P4.06 billion in debts and P22.41 billion in lease obligations due to independent power producers (IPPs).
Last year, PSALM registered P79.46 billion in revenues from its service and business income; shares, donations, grants; and gains.
PSALM managed its operating expenses, recording just a two percent increase from P70.11 billion in 2020 to P71.2 billion last year.
Overhead expenses, accounted for less than five percent PSALM’s total income as the corporation was able to implement substantial cost-cutting measures while increasing revenue collection through successful privatization activities and higher energy sales.
Garcia said all these strategies led PSALM to yield a net surplus of P8.94 billion, 293 percent higher than its net surplus of P2.27 billion.
She attributed PSALM’s growth in net income or surplus to the agency’s successful privatization activities and the substantial increase in energy sales.
Garcia said gains from asset privatization jumped to P4.38 billion from only P37.5 million in 2020.
Last year, PSALM was able to privatize the 650-megawatt Malaya thermal plant for P3.18 billion, which includes the plant’s remaining fuel inventory.