Biomass, Coal and Oil Thermal, Diesel and CCGT Levelized Tariff, Levelized Cost and Financial Model
Biomass, Coal and Oil Thermal, Diesel and CCGT Levelized Tariff, Levelized Cost and Financial Model
The following is a snippet of my state-of-the-art project finance model for calculating levelized tariff, levelized cost of energy, and financial model (generation, fuel requirement, income statement, cash flow statement, balance sheet and financial ratios).
| PROJECT FINANCE MODEL |
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Name | DIESEL POWER PLANT | |
| TARIFF (BIOMASS, BIOGAS, LANDFILL GAS, NATURAL GAS, OIL and COAL) |
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|
(C) Copyright 2009 by Marcial T. Ocampo (November 2009) | |||
| INSTRUCTIONS |
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| (This example is in PhP Thousand, except for the unit prices which are in PhP/kWh) |
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| Year 0 reflects the starting assumptions, which will be applicable starting in year 1. |
6.4910 |
NPV |
IRR |
Payback |
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| Blue cells must be filled out by the user. |
|
NPV-ROI |
0 |
(1,120,560) |
3.59% |
15.18 |
| Escalate fuel, lubes, tariff and O&M costs? (1=yes, 0=no) |
0 |
NPV-ROE |
1 |
0 |
15.00% |
9.38 |
| CALCULATION OF GROSS OPERATING MARGIN |
|
NPV-FC |
0 |
(63,174) |
13.39% |
9.54 |
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NPV-FC discounted |
0 |
(149,508) |
10.69% |
10.22 |
| Year |
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used |
0.00 |
2009 |
2010 |
2011 |
| Days Per Year |
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365 |
365 |
365 |
| Hours Per Day |
24 |
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|
24 |
24 |
24 |
| Plant Operation |
365 |
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Year |
0 |
1 |
2 |
| Overhaul Cycle |
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0 |
1 |
2 |
| Capacity Degradation |
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| Normal, % p.a. |
2.00% |
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|
1.0000 |
1.0200 |
1.0404 |
| Overhaul, % p.a. |
-8.00% |
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|
2.00% |
2.00% |
| Overhaul Cycle, yr |
5 |
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| Recovery, % |
80.00% |
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|
0.00187 |
0.242 |
| Select Manufacturer/Engine Model: |
MW |
Heat Rate, Btu / kWh |
Efficiency, % |
EPC Cost, $/kW |
Variable O&M |
Fixed O&M |
| Biomass Landfill Methane Plant |
22.000 |
8,976 |
38.02% |
1500 |
0.00187 |
0.242 |
| Coal Thermal Plant |
22.000 |
10,781 |
31.65% |
1079 |
0.00325 |
0.225 |
| Bunker Oil Thermal Plant |
22.000 |
10,781 |
31.65% |
991 |
0.00500 |
0.300 |
| Low Sulfur Fuel Oil Cogen Plant |
22.000 |
6,612 |
51.61% |
650 |
0.00200 |
0.150 |
| Diesel Oil Engine Power Plant |
22.000 |
8,976 |
38.02% |
1300 |
0.00500 |
0.040 |
| Natural Gas Combined Cycle Gas Turbine Plant |
22.000 |
6,262 |
54.49% |
650 |
0.00200 |
0.150 |
| Plant Rated Capacity, MW |
22.000 |
8,976 |
38.02% |
1,500.00 |
22.000 |
22.000 |
| Dependable Capacity, MW |
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21.569 |
21.146 |
| Plant Availability |
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| Calendar Days |
365.25 |
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365 |
365 |
| Total Period Hours |
24 |
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|
8760 |
8760 |
| Planned Overhaul, days (3 wks) |
21 |
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| Regular Maintenance, days (1 wks) |
7 |
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7 |
7 |
| Economic S/D, % of CD |
0.30% |
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|
1.10 |
1.10 |
| Deactivated S/D – External, % of CD |
0.50% |
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|
1.83 |
1.83 |
| Total Unforced Outage, days |
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|
9.92 |
9.92 |
| Forced Outage – Internal, % of CD |
7.00% |
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25.55 |
25.55 |
| Total Outage, days |
38.29 |
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35.47 |
35.47 |
| Total Operating Hours |
7,847 |
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7,909 |
7,909 |
| Plant Statistics |
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| Outage Rate = FO*24/ (FO*24+TOH) |
7.25% |
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|
7.20% |
7.20% |
| Availability = TOH/PH |
89.52% |
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|
90.28% |
90.28% |
| Equivalent Availability |
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89.23% |
87.48% |
| Reliability = 1-OR |
92.75% |
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92.80% |
92.80% |
| Generation and Capacity Factor |
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| Load Factor, % of DC |
95.00% |
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|
95.00% |
95.00% |
| Potential Generation = DC*LF*TOH | MWh |
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|
162,051 |
158,874 |
| Rated Generation = RC*PH | MWh |
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192,720 |
192,720 |
| Capacity Factor = PG / RG |
79.30% |
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|
84.09% |
82.44% |
| Plant Heat Rate |
1=CCGT |
2=Cogen |
3=Diesel Engine |
4=Thermal |
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| Diesel Engine (1 / 3) |
33.33% |
33.33% |
40.00% |
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| Steam Boiler (2 / 3) |
66.67% |
66.67% |
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| Boiler Efficiency at 1% cont. BD |
90.00% |
85.00% |
|
90.00% |
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| Steam Turbine Efficiency |
40.00% |
37.00% |
|
37.00% |
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| Mechanical Drive / Clutch Efficiency |
99.00% |
99.00% |
99.00% |
99.00% |
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| Generator Efficiency |
96.00% |
96.00% |
96.00% |
96.00% |
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| Overall Efficiency=(GT+ST*BE*STE)*ME*GE |
54.49% |
51.61% |
38.02% |
31.65% |
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| Plant Heat Rate at 100% eff. |
3412.12 |
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| Plant Heat Rate, Btu / kWh = 3412/ OE |
6,262 |
6,612 |
8,976 |
10,781 |
8,976 |
8,976 |
| Heat Rate (Efficiency) Degradation |
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| Normal, % p.a. |
2.00% |
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1.0000 |
1.0200 |
1.0404 |
| Overhaul, % p.a. |
-8.00% |
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2.00% |
2.00% |
| Overhaul Cycle, yr |
5 |
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| Recovery, % |
80.00% |
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| Actual Plant Heat Rate, Btu/kWh |
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|
9,155 |
9,338 |
| Actual Overall Efficiency, % of fuel GHV |
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37.27% |
36.54% |
| Net Electricity Sales, MWh |
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| Potential Generation |
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162,051 |
158,874 |
| Step-up Transformer Loss (Switchyard), MWh |
5.00% |
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5.00% |
5.00% |
| Generation at Plant Fence |
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153,949 |
150,930 |
| Transmission Line Losses, MWh |
2.00% |
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2.00% |
2.00% |
| Net Electricity Sales to Customer |
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150,870 |
147,911 |
| Other Losses (non-technical, pilferage), MWh |
0.00% |
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0.00% |
0.00% |
| Electricity sales to the network (MWh) |
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|
150,870 |
147,911 |
| Annual increase of the volume, % p.a. |
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0.0% |
-2.0% |
| Energy Input |
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| Gross Generation (Potential Generation), MWh |
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162,051 |
158,874 |
| Plant Heat Rate, Btu/kWh |
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|
9,155 |
9,338 |
| Total Energy Input to be supplied by fuel, Million Btu |
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1,483,582 |
1,483,582 |
| Energy Supplied by each fuel, Million Btu |
GHV, Btu/lb |
NHV, Btu/lb |
GHV / NHV |
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| Natural Gas (Malampaya Gas) – cogen |
22,129 |
20,249 |
1.093 |
|
0 |
0 |
| Diesel Oil – engine |
19,650 |
18,453 |
1.065 |
|
0 |
0 |
| Low Sulfur Fuel Oil (LSFO – 1% S) – cogen |
18,400 |
17,449 |
1.055 |
|
0 |
0 |
| Bunker Fuel Oil (BFO – 3% S) – thermal |
19,670 |
18,565 |
1.060 |
|
0 |
0 |
| Coal (Lignite, Bituminous, Anthracite) – thermal |
10,000 |
9,475 |
1.055 |
|
0 |
0 |
| Biomass Fuel (Bagasse, Woodwaste) – engine |
4,000 |
3,463 |
1.155 |
|
1,483,582 |
1,483,582 |
| Fuel Quantity |
kg / Liter |
GHV, Btu/Liter |
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| Natural Gas (Malampaya Gas) |
1.05506 |
kJ / Btu |
GJ (Million kJ) |
|
0 |
0 |
| Diesel Oil |
0.8448 |
36,597 |
Million Liters |
|
0.000 |
0.000 |
| Low Sulfur Fuel Oil (LSFO – 1% S) |
0.9659 |
39,181 |
Million Liters |
|
0.000 |
0.000 |
| Bunker Fuel Oil (BFO – 3% S) |
0.8916 |
38,664 |
Million Liters |
|
0.000 |
0.000 |
| Coal (Lignite, Bituminous, Anthracite) |
Btu/kg |
22,046 |
Million kg |
|
0.000 |
0.000 |
| Biomass Fuel (Bagasse, Woodwaste) |
Btu/kg |
8,818 |
Million kg |
|
168.237 |
168.237 |
| Unit Fuel Cost |
PhP/Liter 2009 |
Escalation |
|
$ / Million Btu |
|
|
| Natural Gas (Malampaya Gas) – main fuel, 8.628 $/GJ |
418.11 |
0.00% |
PhP / GJ |
9.10 |
418.113 |
418.113 |
| Diesel Oil |
30.00 |
0.00% |
PhP / Liter |
16.92 |
30.000 |
30.000 |
| Low Sulfur Fuel Oil (LSFO – 1% S) |
23.24 |
0.00% |
PhP / Liter |
12.24 |
23.236 |
23.236 |
| Bunker Fuel Oil (BFO – 3% S) |
22.51 |
0.00% |
PhP / Liter |
12.01 |
22.506 |
22.506 |
| Coal (Lignite, Bituminous, Anthracite) – 85.00 $/mt |
4.12 |
0.00% |
PhP / kg |
3.86 |
4.119 |
4.119 |
| Biomass Fuel (Bagasse, Woodwaste) – 10% of ave bunker |
2.29 |
0.00% |
PhP / kg |
5.35 |
2.287 |
2.287 |
| Total Fuel Cost, Million PhP: |
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| Natural Gas (Malampaya Gas) – main fuel, 8.628 $/GJ |
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|
0.000 |
0.000 |
| Diesel Oil |
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|
0.000 |
0.000 |
| Low Sulfur Fuel Oil (LSFO – 1% S) |
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|
0.000 |
0.000 |
| Bunker Fuel Oil (BFO – 3% S) |
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|
0.000 |
0.000 |
| Coal (Lignite, Bituminous, Anthracite) – 85.00 $/mt |
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|
0.000 |
0.000 |
| Biomass Fuel (Bagasse, Woodwaste) – 10% of ave bunker |
|
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|
384.782 |
384.782 |
| Lube Oil Consumption |
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| Normal, % p.a. |
2.00% |
|
|
1.0000 |
1.0200 |
1.0404 |
| Overhaul, % p.a. |
-8.00% |
|
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|
2.00% |
2.00% |
| Overhaul Cycle, yr |
5 |
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| Recovery, % |
80.00% |
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| Ideal Lube Oil Consumption, g/kWh |
0.254 |
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|
0.254 |
0.254 |
| Actual Lube Oil Consumption, g/kWh |
|
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|
0.259 |
0.264 |
| Lube Oil Consumption, Million Liters |
0.8500 |
kg/Liter |
|
|
0.049 |
0.049 |
| Lube Oil Cost, Million PhP |
149.87 |
0.00% |
|
|
7.388 |
7.388 |
| Average lube oil cost, PhP/Liter |
|
|
|
|
149.871 |
149.871 |
| Average lube oil escalation, % p.a. |
|
0.00% |
|
|
0.0% |
0.0% |
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|
| A) Operating income: ‘000 PhP |
365 |
|
Year |
0 |
1 |
2 |
| Electric tariff for sales to the network (PhP/kWh) |
|
6.4910 |
|
|
6.4910 |
6.4910 |
| Annual increase of the tariff, % p.a. |
|
0.00% |
|
|
0.00% |
0.00% |
| Income from sales to DU, ‘000 PhP |
|
|
|
|
685,512 |
672,070 |
| Electricity sales to DU, MWh |
70.00% |
of sales |
|
|
105,609 |
103,538 |
| Electricity tariff to DU, PhP/kWh |
100.00% |
6.4910 |
discount tariff |
|
6.4910 |
6.4910 |
| Income from sales to NPC, ‘000 PhP |
|
|
|
|
195,860 |
192,020 |
| Electricity sales to NPC, MWh |
20.00% |
of sales |
|
|
30,174 |
29,582 |
| Electricity tariff to NPC, PhP/kWh |
100.00% |
6.4910 |
reference tariff |
|
6.4910 |
6.4910 |
| Income from sales to WESM, ‘000 PhP |
|
|
|
|
97,930 |
96,010 |
| Electricity sales to WESM, MWh |
10.00% |
of sales |
|
|
15,087 |
14,791 |
| Electricity tariff to WESM, PhP/kWh |
100.00% |
6.4910 |
WESM tariff |
|
6.4910 |
6.4910 |
| Income from garbage tipping fee, ‘000 PhP |
|
|
|
|
16,824 |
16,824 |
| Garbage quantity, Million MT |
|
|
|
|
0.168 |
0.168 |
| Tipping fee, PhP/MT |
100 |
0.00% |
|
|
100.000 |
100.000 |
|
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| TOTAL OPERATING INCOME |
|
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|
996,126 |
976,924 |
| Annual increase in Operating Income |
|
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|
|
0.0% |
-1.9% |
| Total electricity sales to DU, NPC, and WESM, MWh |
|
|
|
|
150,870 |
147,911 |
| Average Electricity Tariff, PhP/kWh |
|
|
|
|
6.6026 |
6.6048 |
| Annual increase in Electricity Tariff |
|
0.00% |
|
|
0.0% |
0.0% |
|
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| B) Expenses: ‘000 PhP |
|
|
Year |
0 |
1 |
2 |
| Natural Gas (Malampaya Gas) |
|
|
|
|
0 |
0 |
| Diesel Oil |
|
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|
0 |
0 |
| Low Sulfur Fuel Oil (LSFO – 1% S) |
|
|
|
|
0 |
0 |
| Bunker Fuel Oil (BFO – 3% S) |
|
|
|
|
0 |
0 |
| Coal (Lignite, Bituminous, Anthracite) |
|
|
|
|
0 |
0 |
| Biomass Fuel (Bagasse, Woodwaste) |
Escalation |
months |
working capital |
|
384,782 |
384,782 |
| Total Fuel Costs |
|
2 |
64,130 |
384,782 |
384,782 |
384,782 |
| Annual increase of fuel costs |
|
|
|
|
0.0% |
0.0% |
| Expenses from lube purchase |
|
2 |
1,231 |
7,388 |
7,388 |
7,388 |
| Purchase of chemical materials |
0.00% |
2 |
498 |
2,988 |
2,988 |
2,931 |
| Utilities (electricity, water) |
0.00% |
2 |
415 |
2,490 |
2,490 |
2,442 |
| DOE 1-04 (0.01 PhP/kWh sold) |
|
2 |
251 |
1,509 |
1,509 |
1,479 |
| Total Variable O&M |
|
|
2,396 |
|
14,375 |
14,240 |
| Annual increase of variable O&M |
|
-0.74% |
|
|
0.0% |
-0.9% |
| Variable O&M, $/kWh |
48.46 |
0.00188 |
1.48% |
% of revenue |
0.00183 |
0.00185 |
|
|
|
|
|
|
|
|
| Maintenance of the installation |
0.00% |
2 |
11,621 |
69,729 |
69,729 |
68,385 |
| Personnel expense |
0.00% |
2 |
11,621 |
69,729 |
69,729 |
68,385 |
| Land lease, rent |
0.00% |
2 |
11,621 |
69,729 |
69,729 |
68,385 |
| Other services |
0.00% |
2 |
11,621 |
69,729 |
69,729 |
68,385 |
| Total Fixed O&M |
|
|
46,486 |
|
278,915 |
273,539 |
| Annual increase of fixed O&M |
|
-0.86% |
|
|
0.0% |
-1.9% |
| Fixed O&M, $/kW/year |
48.46 |
0.24710 |
28.00% |
% of revenue |
0.26162 |
0.25657 |
|
|
|
|
|
|
|
|
| Taxes, Insurances, Benefits & Regulatory Costs |
0.00% |
|
0 |
|
33,842 |
32,175 |
| DSRF Expense |
|
0.30% |
0 |
|
360 |
340 |
|
|
|
|
total working capital |
|
|
|
| TOTAL OPERATING EXPENSE |
|
|
113,012 |
|
712,275 |
705,076 |
| Annual increase |
|
-0.84% |
|
|
|
-1.0% |
|
|
|
|
|
|
|
|
| GROSS OPERATING MARGIN |
|
|
|
|
283,851 |
271,848 |
| Annual increase |
|
-0.71% |
|
|
|
-4.2% |
|
|
|
|
|
|
|
|
| PROFIT AND LOSS STATEMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| In ‘000 PhP |
|
|
Year |
0 |
1 |
2 |
| Operating income |
|
|
|
|
996,126 |
976,924 |
| Operating expense |
|
|
|
|
712,275 |
705,076 |
| Operating gross margin |
|
|
|
|
283,851 |
271,848 |
|
|
|
|
|
|
|
|
| - Depreciation & amortization |
|
|
|
|
79,990 |
79,990 |
| - Interest |
|
|
|
|
127,744 |
114,297 |
| NET PROFIT BEFORE TAX |
|
|
|
|
76,117 |
77,561 |
| (Tax rate) and Income Tax Holiday (ITH) years |
30% |
0 |
|
|
30% |
30% |
| - Income tax |
|
|
|
|
22,835 |
23,268 |
|
|
|
|
|
|
|
|
| NET PROFIT AFTER TAX |
|
|
|
|
53,282 |
54,293 |
| Percentage of increase |
|
|
|
|
|
1.9% |
|
|
|
|
|
|
|
|
| NET CASH FLOW |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
0 |
1 |
2 |
| Net profit after tax |
|
|
|
|
53,282 |
54,293 |
|
|
|
|
|
|
|
|
| Addback: |
|
|
|
|
|
|
| Depreciation & Amortization |
|
|
|
|
79,990 |
79,990 |
| Working Capital |
|
|
|
|
|
|
| Salvage Value |
|
|
|
|
|
|
| Add: |
|
|
|
|
|
|
| DSRF Income |
4.00% |
DSRF Income |
|
|
4,796 |
4,527 |
| Less: |
|
|
|
|
|
|
| Principal Repayment |
|
|
|
|
112,056 |
112,056 |
| Profit Sharing |
0.00% |
of income after tax |
|
|
0 |
0 |
| Social Benefit Fund – Host Community |
0 |
per month |
|
|
0 |
0 |
|
|
|
|
|
|
|
|
| NET CASH FLOW |
|
|
|
|
26,012 |
26,754 |
| Percentage of increase |
|
|
|
|
|
2.9% |
|
|
|
|
|
|
|
|
| Total Initial investment |
|
|
|
1,600,800 |
|
|
| Project Cash Flow |
3.59% |
12.90% |
WACC |
-1,600,800 |
26,012 |
26,754 |
|
|
IRR |
NPV |
-1,120,560 |
-1,600,800 |
22,619 |
20,230 |
|
|
|
check |
-1,018,798 |
-1,600,800 |
23,040 |
20,989 |
|
|
|
cumulative |
0 |
-1,600,800 |
-1,574,788 |
-1,548,035 |
|
|
|
project payback |
15.18 |
|
|
|
|
|
|
|
|
|
|
|
| Invested capital |
|
|
30.00% |
480,240 |
|
|
| Equity Cash Flow |
15.00% |
15.00% |
Equity IRR |
-480,240 |
26,012 |
26,754 |
|
|
IRR |
NPV |
0 |
-480,240 |
22,619 |
20,230 |
|
|
|
check |
0 |
-480,240 |
22,619 |
20,230 |
|
|
|
cumulative |
0 |
-480,240 |
-454,228 |
-427,475 |
|
|
|
equity payback |
9.38 |
|
|
|
|
|
|
|
|
|
|
|
| CALCULATION OF CASH FLOW FOR DEBT SERVICE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
0 |
1 |
2 |
| Operating gross margin |
|
|
|
|
283,851 |
271,848 |
| - Income tax |
|
|
|
|
22,835 |
23,268 |
| - Increase in working capital needs (WCN) |
|
|
|
|
173,432 |
-2,725 |
| - Profit Sharing |
|
|
|
|
0 |
0 |
| + DSRF Income |
|
|
|
|
4,796 |
4,527 |
| - Social Benefit Fund |
|
|
|
|
0 |
0 |
|
|
|
|
|
|
|
|
| Cash flow available for debt service (CFD) |
|
|
|
|
92,380 |
255,832 |
|
|
|
|
|
|
|
|
| CALCULATION OF DEBT SERVICE COVERAGE RATIO (DSCR) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
0 |
1 |
2 |
| Cash flow available for debt service (CFD) |
|
|
|
|
92,380 |
255,832 |
|
|
|
|
|
|
|
|
| Annual debt service (DS) |
|
|
|
|
239,800 |
226,353 |
|
|
|
|
|
|
|
|
| DEBT SERVICE COVERAGE RATIO (DSCR) |
|
|
|
|
0.39 |
1.13 |
|
|
|
|
|
|
|
|
| CALCULATION OF DIVIDENDS PAYABLE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
0 |
1 |
2 |
| Cash flow available for debt service (CFD) |
|
|
|
|
92,380 |
255,832 |
| Annual debt service (DS) |
|
|
|
|
239,800 |
226,353 |
| CF available for dividends (CFDiv = CFD-DS) |
|
|
|
|
0 |
29,479 |
| Accumulated CFDiv |
|
|
|
0 |
0 |
29,479 |
| Current year profit after tax |
|
|
|
|
53,282 |
54,293 |
| Accumulated profit: limit for dividend payable |
|
|
|
0 |
53,282 |
107,574 |
|
|
|
|
|
|
0 |
29,479 |
| Accumulated dividend payable |
|
|
|
0 |
0 |
29,479 |
| Annual dividend payable |
|
|
|
|
0 |
29,479 |
|
|
|
|
|
|
|
|
| CALCULATION OF NPV, IRR AND PAY-BACK ACCORDING TO INVESTED CAPITAL AND DIVIDENDS PAYABLE |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
Year |
0 |
1 |
2 |
| Invested capital |
|
|
|
480,240 |
|
|
| Annual dividend payable |
|
|
|
0 |
0 |
29,479 |
| Discount rate to be applied for NPV calculation |
|
|
|
15.00% |
15% |
15% |
| Discount factor for this rate |
|
|
1 |
1.0000 |
1.1500 |
1.3225 |
| Discounted dividends |
|
|
|
0 |
0 |
22,290 |
| Present value of dividends |
|
|
|
417,066 |
|
|
| NPV of the investment |
|
|
-63,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
0 |
1 |
2 |
| Investment schedulle |
13.39% |
15.00% |
Equity IRR |
-480,240 |
0 |
29,479 |
| IRR of Invested Capital |
IRR |
NPV |
-63,174 |
-480,240 |
0 |
22,290 |
|
|
|
check |
-63,174 |
-480,240 |
0 |
22,290 |
|
|
|
cumulative |
0 |
-480,240 |
-480,240 |
-450,761 |
| Pay-back term of invested capital, years |
|
equity payback |
9.54 |
|
|
|
|
|
|
|
|
|
|
|
| BALANCE SHEET ACCOUNTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Calculation of Working Capital Needs (WCN): |
|
|
|
|
|
|
| Cash needed for operations (+) |
3.00 |
months of expenses |
|
|
69,729 |
68,385 |
| Customers / Receivables (+) |
1.00 |
months of revenue |
|
|
83,010 |
81,410 |
| Stocks / Inventory (+) |
2.00 |
months of fuel & chemicals |
|
64,628 |
64,619 |
|
| Suppliers / Payables (-) |
1.00 |
months of payables |
|
|
43,936 |
43,707 |
| WCN |
17.56% |
% of operating income |
|
173,432 |
170,707 |
|
|
|
|
|
|
|
|
|
| CALCULATION OF DEPRECIATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| In ‘000 PhP |
|
|
Year |
0 |
1 |
2 |
| Initial investment in land (PhP/ha), 1 ha = 10,000 m2 |
1,000,000 |
1 |
ha |
1,000 |
|
|
| Freight on Board = FOB USA = $/kW |
35,276 |
22.000 |
MW |
776,075 |
|
|
| Ocean Freight = FRT = 5% x FOB |
5% |
|
|
38,804 |
|
|
| Insurance = INS = 1% x FOB |
1% |
|
|
7,761 |
|
|
| Cargo, Insurance & Freight = CIF = FOB + FRT + INS |
|
|
|
822,640 |
|
|
| Value Added Tax = VAT = 12% x CIF |
12% |
|
|
98,717 |
|
|
| Customs Duty = (CIF + VAT) x (% Duty) x (1 + % VAT) |
3% |
|
|
30,958 |
|
|
| Duty-Paid Landed Cost = DPLC = CIF + VAT + Duty |
|
|
|
952,314 |
|
|
| Local Freight Cost = LFC = 3% x CIF |
3% |
|
|
24,679 |
|
|
| Delivered Cost at Site = DCS = DPLC + LFC |
|
|
|
976,993 |
|
|
| Installation Cost = IC = 5% x FOB |
5% |
|
|
38,804 |
|
|
| Total EPC = DCS + IC |
|
|
|
1,015,797 |
|
|
| Contingency (10%) = EPC x 10% |
10% |
|
|
101,580 |
|
|
| Documentary Stamps (1%) = EPC x 1% = DS |
1% |
|
|
10,158 |
|
|
| Total Fixed Assets (EPC + Contingency + DS) |
|
|
|
1,127,535 |
|
|
| Depreciation term (years) |
salvage |
0.00% |
56,377 |
20 |
1,128,535 |
|
| Development costs (modeler) |
|
1.00% |
|
11,285 |
|
|
| Other Costs including taxes, contingencies |
|
12.00% |
|
135,424 |
|
|
| Initial investment in capitalized expenses |
|
|
|
259,722 |
146,710 |
|
| Amortization term (years) |
salvage |
0.00% |
12,986 |
20 |
|
|
| Working Capital: |
|
|
|
|
|
|
| Working capital (initial stocks – fuel) – 2 months |
|
|
|
64,130 |
|
|
| Working capital (initial stocks – lubes) – 2 months |
|
|
|
1,231 |
|
|
| Working capital (initial stocks – chemical materials) – 2 months |
|
|
|
498 |
|
|
| Working capital (mobilization – utilities) – 2 months |
|
|
|
415 |
|
|
| Working capital (mobilization – DOE 1-94) – 2 months |
|
|
|
251 |
|
|
| Working capital (mobilization – maintenance) – 2 months |
|
|
|
11,621 |
|
|
| Working capital (mobilization – personnel expense) – 2 months |
|
|
|
11,621 |
|
|
| Working capital (pre-paid expense – advance rent) – 2 months |
|
|
11,621 |
|
|
|
| Working capital (pre-paid expense – other services) – 2 months |
|
113,012 |
11,621 |
1,036,797 |
|
|
| Interest During Construction: |
|
|
|
|
|
|
| Dev’t fees (loan arranger) |
|
1.00% |
|
10,368 |
|
|
| Front end fees (loan arranger) |
|
1.00% |
|
10,368 |
|
|
| Commitment fees (bank) |
|
0.50% |
|
5,184 |
|
|
| Interest During Construction (bank) – 18 months |
1.50 |
12.00% |
|
186,623 |
212,543 |
|
| Amortization term (years) |
salvage |
0.00% |
10,627 |
20 |
|
|
| Total Investment (land, fixed, capitalized expenses, working capital) |
|
|
1,600,800 |
$33,033 |
|
|
|
|
|
|
|
|
|
|
| Depreciation of fixed assets |
|
|
|
|
56,377 |
56,377 |
| Amortization of capitalized expenses |
|
|
|
|
12,986 |
12,986 |
| Amortization of capitalized expenses |
|
|
|
|
10,627 |
10,627 |
|
|
|
|
|
|
|
|
| TOTAL DEPRECIATION & AMORTIZATION EXPENSE |
|
|
|
|
79,990 |
79,990 |
|
|
|
|
|
|
|
|
| Evolution of fixed assets and capitalized expenses |
|
|
Year |
0 |
1 |
2 |
|
|
|
|
|
|
|
|
| Land (non-depreciable) |
|
|
|
1,000 |
1,000 |
1,000 |
|
|
|
|
|
|
|
|
| Gross fixed assets (PPE, Building, Civil Works) |
|
|
|
1,127,535 |
1,127,535 |
1,127,535 |
| Accumulated depreciation |
|
|
|
0 |
56,377 |
112,753 |
| Net fixed assets |
|
|
|
1,127,535 |
1,071,158 |
1,014,781 |
|
|
|
|
|
|
|
|
| Gross capitalized expenses (Development Costs, Working Capital) |
|
|
259,722 |
259,722 |
259,722 |
|
| Accumulated amortization |
|
|
|
0 |
12,986 |
25,972 |
| Net capitalized expenses |
|
|
|
259,722 |
246,736 |
233,750 |
|
|
|
|
|
|
|
|
| Gross capitalized interest during construction (IDC) |
|
|
|
212,543 |
212,543 |
212,543 |
| Accumulated amortization |
|
|
|
0 |
10,627 |
21,254 |
| Net capitalized intereset during construction (IDC) |
|
|
|
212,543 |
201,916 |
191,289 |
|
|
|
|
|
|
|
|
| Total Depreciable Assets (fixed assets, capitalized expenses, IDC) |
|
|
1,599,800 |
1,519,810 |
1,439,820 |
|
|
|
|
|
|
|
|
|
| Taxes, Insurances, Benefits & Regulatory Costs |
|
|
Year |
0 |
1 |
2 |
|
|
|
|
|
|
|
|
| Real Property Tax – Land |
1.60% |
of land |
|
|
16 |
16 |
| Real Property Tax – PPE |
1.60% |
of fixed assets |
|
|
17,139 |
16,237 |
| Real Property Tax – Buildings |
0.80% |
of building |
|
|
|
|
| Land Lease & ROW |
0.00 |
PhP/MT coal |
|
|
|
|
| Property Insurance – PPE |
0.78% |
of fixed assets |
|
|
8,795 |
8,795 |
| Property Insurance – Building |
0.78% |
of building |
|
|
|
|
| Business Interruption Insurance |
0.56% |
of previous year’s revenue |
|
6,314 |
5,578 |
|
| Special Education Fund – benefits to host community |
1.00% |
of land |
|
|
10 |
10 |
| SEC Registration & Fees |
4,434 |
|
|
|
4.43 |
4.43 |
| BIR Registration & Fees |
530 |
|
|
|
0.53 |
0.53 |
| DENR Permits & Fees |
112 |
|
|
|
0.11 |
0.11 |
| Discharge Fee (BOD, TSS) – DENR |
0 |
|
|
|
0.00 |
0.00 |
| EMB Permits & Fees |
448 |
|
|
|
0.45 |
0.45 |
| NWRB Permits & Fees |
17,417 |
|
|
|
17.42 |
17.42 |
| PNRI Permits & Fees |
5,900 |
|
|
|
5.90 |
5.90 |
| ERC Registration & Fess |
1,500 |
|
|
|
1.50 |
1.50 |
| DOLE Permits & Fees |
240 |
|
|
|
0.24 |
0.24 |
| DTI Permits & Fees |
0 |
|
|
|
0.00 |
0.00 |
| LGU Registration & Fees |
2,273 |
|
|
|
2.27 |
2.27 |
| NTC Registration & Fees |
32 |
|
|
|
0.03 |
0.03 |
| BOC Registration & Fees |
5,000 |
|
|
|
5.00 |
5.00 |
| PPA Registration & Fees |
1,000 |
|
|
|
1.00 |
1.00 |
| ATO Registration & Fees |
13,050 |
|
|
|
13.05 |
13.05 |
| PDEA Registration & Fees |
3,000 |
|
|
|
3.00 |
3.00 |
| BOI Registration & Fees |
4,500 |
|
|
|
4.50 |
4.50 |
| DOE Permits & Fees |
800 |
|
|
|
0.80 |
0.80 |
| Local Business Taxes (1/2 of 1% of GR) |
0.00% |
of gross revenue |
|
|
0 |
0 |
| National Franchise Taxes (1/2 of 1% of GR) |
0.00% |
of gross revenue |
|
|
0 |
0 |
| DOE 1-94 (PhP 0.01 per kWh sold) |
0.01 |
per kWh sold |
|
|
1,509 |
1,479 |
| Total Taxes, Insurances & Regulatory Costs |
|
|
|
|
33,842 |
32,175 |
|
|
|
|
|
|
|
|
| DEBT SERVICE CALCULATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| In ‘000 PhP |
|
|
Year |
0 |
1 |
2 |
| Total Initial investment |
|
|
|
1,600,800 |
|
|
| % to be financed by capital |
|
Equity IRR |
15.00% |
30.00% |
|
|
| % to be financed by non refundable subsidy |
|
Subsidy |
0.00% |
0.00% |
|
|
| % to be financed by debt |
|
Debt Interest |
12.00% |
70.00% |
|
|
| Initial amount of capital |
|
WACC |
12.90% |
480,240 |
|
|
| Amount of subsidy |
|
|
|
0 |
|
|
| Initial amount of debt |
|
|
|
1,120,560 |
|
|
| Repayment term (years) |
|
|
112,056 |
10 |
|
|
|
|
|
|
|
|
|
|
| Constant Repayment Method: |
|
|
|
|
|
|
| Annual repayment |
|
|
|
|
112,056 |
112,056 |
| Amount of debt at year end |
|
|
|
1,120,560 |
1,008,504 |
896,448 |
| Average amount of debt |
|
|
|
|
1,064,532 |
952,476 |
| Reference interest rate (Libor or other) |
|
|
|
10.00% |
10.00% |
10.00% |
| Spread |
|
|
|
2.00% |
2.00% |
2.00% |
| Interest rate of debt |
|
1 |
|
12.00% |
12.00% |
12.00% |
| Interest based on average amount of debt |
|
|
|
|
127,744 |
114,297 |
|
|
|
|
|
|
|
|
| Declining Balance Method: |
|
|
|
|
|
|
| Beginning Balance |
|
|
|
|
1,120,560 |
1,056,706 |
| Interest based on beginning balance |
|
0 |
17.70% |
12.00% |
134,467 |
126,805 |
| Principal repayment |
|
|
198,321 |
10 |
63,854 |
71,517 |
| Remaining balance |
|
|
|
1,120,560 |
1,056,706 |
985,189 |
|
|
|
|
|
|
|
|
|
|
|
|
Year |
0 |
1 |
2 |
| Beginning Balance |
|
|
|
|
1,120,560 |
1,008,504 |
| Annual amount of interest |
|
|
|
|
127,744 |
114,297 |
| Annual amount of principal |
|
|
|
|
112,056 |
112,056 |
| Annual debt service (principal + interest) |
|
|
|
|
239,800 |
226,353 |
| Ending Balance |
|
|
|
1,120,560 |
1,008,504 |
896,448 |
|
|
|
|
|
|
|
|
| Debt Service Reserve Fund |
6 |
months of debt service |
|
119,900 |
113,177 |
|
| DSRF Income -interest on Foreign Currency Deposit |
4.00% |
DSRF Income |
|
|
4,796 |
4,527 |
| Withholding Tax on Foreign Currency Deposit |
7.50% |
WHTax |
|
|
|
|
| DSRF Expense – withholding tax |
0.30% |
DSRF Expense |
|
|
360 |
340 |
|
|
|
|
|
|
|
|
| BALANCE SHEET |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| BALANCE SHEET BEFORE DIVIDEND PAYMENT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| In ‘000 PhP |
|
|
Year |
0 |
1 |
2 |
| Cash needed for operations |
|
|
|
0 |
69,729 |
68,385 |
| Additional cash (if negative, it would represent additional debt) |
|
|
0 |
-152,216 |
-127,265 |
|
| Receivables / Customers |
|
|
|
0 |
83,010 |
81,410 |
| Stocks / Inventory |
|
|
|
0 |
64,628 |
64,619 |
| Land |
|
|
|
1,000 |
1,000 |
1,000 |
| Fixed assets (net) |
|
|
|
1,127,535 |
1,071,158 |
1,014,781 |
| Capitalized expenses (net) |
|
|
|
259,722 |
246,736 |
233,750 |
| Capitalized IDC (net) |
|
|
|
212,543 |
201,916 |
191,289 |
| Total assets |
|
|
|
1,600,800 |
1,585,962 |
1,527,969 |
|
|
|
|
|
|
|
|
| Suppliers / Payables |
|
|
|
0 |
43,936 |
43,707 |
| Debt |
|
|
|
1,120,560 |
1,008,504 |
896,448 |
| Shareholder’s Advances |
|
|
|
|
|
|
| Current year profit after tax |
|
|
|
0 |
53,282 |
54,293 |
| Accumulated reserves |
|
|
|
0 |
0 |
53,282 |
| Subsidy |
|
|
|
0 |
0 |
0 |
| Capital |
|
|
|
480,240 |
480,240 |
480,240 |
| Total liabilities and net worth |
|
|
|
1,600,800 |
1,585,962 |
1,527,969 |
|
|
|
|
variance |
- |
- |
- |
| BALANCE SHEET AFTER DIVIDEND PAYMENT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
0 |
1 |
2 |
| Cash needed for operations |
|
|
|
0 |
69,729 |
68,385 |
| Additional cash (if negative, it would represent additional debt) |
|
|
0 |
-152,216 |
-156,743 |
|
| Receivables / Customers |
|
|
|
0 |
83,010 |
81,410 |
| Stocks / Inventory |
|
|
|
0 |
64,628 |
64,619 |
| Land |
|
|
|
1,000 |
1,000 |
1,000 |
| Fixed assets (net) |
|
|
|
1,127,535 |
1,071,158 |
1,014,781 |
| Capitalized expenses (net) |
|
|
|
259,722 |
246,736 |
233,750 |
| Capitalized IDC (net) |
|
|
|
212,543 |
201,916 |
191,289 |
| Total assets |
|
|
|
1,600,800 |
1,585,962 |
1,498,491 |
|
|
|
|
|
|
|
|
| Suppliers / Payables |
|
|
|
0 |
43,936 |
43,707 |
| Debt |
|
|
|
1,120,560 |
1,008,504 |
896,448 |
| Shareholder’s Advances |
|
|
|
|
|
|
| Current year profit after tax |
|
|
|
|
|
|
| Reserves |
|
|
|
0 |
53,282 |
78,096 |
| Subsidy |
|
|
|
0 |
0 |
0 |
| Capital |
|
|
|
480,240 |
480,240 |
480,240 |
| Total liabilities and net worth |
|
|
|
1,600,800 |
1,585,962 |
1,498,491 |
|
|
|
|
variance |
- |
- |
- |
| Calculation of Dividends Payable |
|
|
|
|
|
|
| Gross Margin |
|
|
|
|
283,851 |
271,848 |
| Income Tax (-) |
|
|
|
|
22,835 |
23,268 |
| Increase in Working Capital (-) |
|
|
|
|
173,432 |
-2,725 |
| Profit Sharing (-) |
|
|
|
|
0 |
0 |
| DSRF Income (+) |
|
|
|
|
4,796 |
4,527 |
| Social Benefit Fund (-) |
|
|
|
|
0 |
0 |
| Cash flow available for debt service (CFD) |
|
|
|
|
92,380 |
255,832 |
| Annual debt service (DS) = Interest + Principal |
|
|
|
|
239,800 |
226,353 |
| CF available for dividends (CFDiv = CFD-DS) |
|
|
|
|
0 |
29,479 |
| Accumulated CFDiv |
|
|
|
0 |
0 |
29,479 |
| Current year profit = Income After Tax |
|
|
|
|
53,282 |
54,293 |
| Accumulated profit: limit for dividend payable |
|
|
|
0 |
53,282 |
107,574 |
| Accumulated dividend payable |
|
|
|
0 |
0 |
29,479 |
| Annual dividend payable |
planned |
actual |
|
-480,240 |
0 |
29,479 |
| Investor 1 |
60.00% |
57.12% |
|
-288,144 |
0 |
17,687 |
| Investor 2 |
20.00% |
40.06% |
|
-96,048 |
0 |
5,896 |
| Investor 3 |
20.00% |
2.82% |
|
-96,048 |
0 |
5,896 |
|
|
|
|
|
|
|
|
| CASH FLOW STATEMENT |
|
|
Year |
0 |
1 |
2 |
|
|
|
|
|
|
|
|
| OPERATIONS |
|
|
|
|
|
|
| Net Income (after tax) |
|
|
|
0 |
53,282 |
54,293 |
| Add: Depreciation & Amortization |
|
|
|
0 |
79,990 |
79,990 |
| (Increase) / Decrease in Receivables |
|
|
|
0 |
-83,010 |
1,600 |
| (Increase) / Decrease in Inventories |
|
|
|
0 |
-64,628 |
10 |
| Increase / (Decrease) in Accounts Payable |
|
|
|
0 |
43,936 |
-229 |
| Net Cash flow from Operations |
|
|
|
0 |
29,569 |
135,664 |
|
|
|
|
|
|
|
|
| INVESTMENTS |
|
|
|
|
|
|
| Additions to PP&E |
|
1,127,535 |
|
-1,127,535 |
0 |
0 |
| Additions to Capitalized Expenses |
|
259,722 |
|
-259,722 |
0 |
0 |
| Additions to Capitalized IDC |
|
212,543 |
|
-212,543 |
0 |
0 |
| Additions to Land |
|
1,000 |
|
-1,000 |
0 |
0 |
| Net Cash flow Used for Investments |
|
1,600,800 |
|
-1,600,800 |
0 |
0 |
|
|
|
|
|
|
|
|
| Cash flow before Financing |
|
|
|
-1,600,800 |
29,569 |
135,664 |
|
|
|
|
|
|
|
|
| FINANCING |
|
|
|
|
|
|
| Increase (Decrease) in Shareholder Advances |
|
|
|
0 |
0 |
0 |
| Increase (Decrease) in Long-term Debt |
|
1,120,560 |
|
1,120,560 |
-112,056 |
-112,056 |
| Increase (Decrease) in Subsidy |
|
0 |
|
0 |
0 |
0 |
| Increase (Decrease) in Capital Stock |
|
480,240 |
|
480,240 |
0 |
0 |
| Net Cash flow from Financing |
|
1,600,800 |
|
1,600,800 |
-112,056 |
-112,056 |
|
|
|
|
|
|
|
|
| NET CASH FLOW |
|
|
|
0 |
-82,488 |
23,608 |
|
|
|
|
|
|
|
|
| Add: Beginning Cash Balance |
|
|
|
|
0 |
-82,488 |
| ENDING CASH BALANCE |
|
|
|
0.00 |
-82,488 |
-58,880 |
|
|
|
|
|
|
|
|
| Levelized Price and Generation Cost of Electricity |
|
|
Year |
0 |
1 |
2 |
|
|
|
|
|
|
|
|
| Discounting Rate, % p.a. |
15.00% |
48.46 |
|
NPV |
|
|
|
|
|
|
|
|
|
|
| Electricity sales | MWh |
$/kWh |
PhP/kWh |
907,900 |
150,870 |
147,911 |
|
|
|
|
|
|
|
|
| TOTAL OPERATING INCOME (levelized price) | 000 PhP |
0.1363 |
6.6063 |
5,997,850 |
996,126 |
976,924 |
|
|
|
|
|
|
|
|
| Total Fuel Costs | 000 PhP |
0.0544 |
2.6358 |
2,393,056 |
384,782 |
384,782 |
|
|
|
|
|
|
|
|
| Expenses from lube purchase | 000 PhP |
0.0010 |
0.0506 |
45,948 |
7,388 |
7,388 |
| Purchase of chemical materials | 000 PhP |
0.0004 |
0.0198 |
17,994 |
2,988 |
2,931 |
| Utilities (electricity, water) | 000 PhP |
0.0003 |
0.0165 |
14,995 |
2,490 |
2,442 |
| DOE 1-04 (0.01 PhP/kWh sold) | 000 PhP |
0.0002 |
0.0100 |
9,079 |
1,509 |
1,479 |
|
|
|
|
|
|
|
|
| Maintenance of the installation | 000 PhP |
0.0095 |
0.4624 |
419,849 |
69,729 |
68,385 |
| Personnel expense | 000 PhP |
0.0095 |
0.4624 |
419,849 |
69,729 |
68,385 |
| Land lease, rent | 000 PhP |
0.0095 |
0.4624 |
419,849 |
69,729 |
68,385 |
| Other services | 000 PhP |
0.0095 |
0.4624 |
419,849 |
69,729 |
68,385 |
| Taxes, Insurances, Benefits & Regulatory Costs | 000 PhP |
0.0040 |
0.1940 |
176,099 |
33,842 |
32,175 |
| DSRF Expense | 000 PhP |
0.0000 |
0.0016 |
1,463 |
360 |
340 |
|
|
|
|
|
|
|
|
| - Depreciation & amortization | 000 PhP |
0.0114 |
0.5515 |
500,684 |
79,990 |
79,990 |
| - Interest | 000 PhP |
0.0094 |
0.4547 |
412,799 |
127,744 |
114,297 |
| - Income tax | 000 PhP |
0.0051 |
0.2466 |
223,901 |
22,835 |
23,268 |
|
|
|
|
|
|
|
|
| Total Generation Cost |
|
0.1245 |
6.0309 |
5,475,414 |
942,844 |
922,631 |
|
|
|
|
|
|
|
|
| Net Profit |
|
0.0119 |
0.5754 |
522,436 |
53,281.76 |
54,292.66 |
|
|
|
|
|
|
0.00 |
0.00 |
|
|
|
|
|
|
|
|
| a) NREL formula | Net COE = ICC * CRF / AEPnet + (LLC + O&M + LRC + MOE) – PTC, in US $/kWh or US cents/kWh |
|
||||
| LEVELIZED GENERATION COST | where: | Net COE = Levelized Cost of Energy, $/kWh (constant US $) |
|
|||
|
|
|
ICC = Initial Capital Cost (total debt), $ |
|
|
|
|
|
|
|
CRF = capital recovery factor, 1/yr = int / (1 – (1 + int)^-Life) |
|
|
||
|
|
|
AEPnet = Net Annual Energy Production, kWh/yr = (kW capacity) * (capacity factor) * (hours/year) | ||||
|
|
|
LLC = Land Lease Cost, $/kWh |
|
|
|
|
|
|
|
O&M = Levelized Operating & Maintenance Expense, $/kWh |
|
|
||
|
|
|
LRC = Levelized Replacement/Overhaul Cost, $/kWh |
|
|
||
|
|
|
MOE = Miscellaneous Operating Expense, $/kWh |
|
|
||
|
|
|
PTC = US Production Tax Credit, $/kWh |
|
|
|
|
|
|
|
|
|
|
|
|
| a) RP formula | Net COE = Total Cost / ((1 – g) * (1 – t)), in US $/kWh or US cents/kWh |
|
|
|||
| LEVELIZED SELLING PRICE | where: | Total Cost = ( ICC * CRF + (FixO&M + VarO&M + DOE + Fuel) * (1 – t) – t * DEPN ) / AEPnet | ||||
|
|
|
ICC = (Capacity, kW) * (Overnight Cost, $/kW) and |
|
|
||
|
|
|
CRF = capital recovery factor, 1/yr = int / (1 – (1 + int)^-Life) |
|
|
||
|
|
|
AEPnet = Net Annual Energy Production, kWh/yr = (kW capacity) * (capacity factor) * (hours/year) | ||||
|
|
|
FixO&M = (Fixed O&M, $/kW/yr) * (Capacity, kW) |
|
|
||
|
|
|
VarO&M = (Variable O&M, $/kWh) * AEPnet |
|
|
||
|
|
|
DOE = (PhP 0.10 / kWh) / (Exchange Rate, PhP / US $) * AEPnet |
|
|
||
|
|
|
Fuel = (net Heat Rate, LHV) * AEPnet * (Price of fuel, LHV) = (3600 / Efficiency, kJ/kWh net) * AEPnet * (Price, $/kJ net) | ||||
|
|
|
DEPN = Depreciation, $ / yr = ICC / Life |
|
|
|
|
|
|
|
g = Franchise Tax + Business Tax = 2.5% + 0.005% = 2.005% |
|
|
||
|
|
|
t = Income Tax = 32% |
|
|
|
|
|
|
|
int = Interest Rate, % |
|
|
|
|
|
|
|
Life = Economic Life or Project Life, yrs |
|
|
|
|
|
|
|
|
|
|
|
|
| FINANCIAL RATIOS |
|
|
Year |
0 |
1 |
2 |
|
|
|
|
|
|
|
|
| a. CURRENT RATIO: (preferably > 2.00) |
|
|
|
|
|
|
| Current Assets (cash + receivables + stocks) |
|
|
|
|
217,368 |
214,414 |
| Current Liabilities |
|
|
|
average |
43,936 |
43,707 |
| Current Ratio = Current Assets / Current Liabilities |
|
|
|
5.83 |
4.95 |
4.91 |
|
|
|
|
|
|
|
|
| b. QUICK RATIO: (preferably > 1.00) |
|
|
|
|
|
|
| Cash + Receivables |
|
|
|
|
152,739 |
149,795 |
| Current Liabilities |
|
|
|
average |
43,936 |
43,707 |
| Current Ratio = (Cash + Receivables) / Current Liabilities |
|
|
|
4.34 |
3.48 |
3.43 |
|
|
|
|
|
|
|
|
| c. ACCOUNTS RECEIVABLE TURNOVER : (preferably > 12.00) |
|
|
|
|
|
|
| Gross Revenue (Electricity + By-Products + Other Incomes) |
|
|
|
996,126 |
976,924 |
|
| Cash Sales for year (By-Products + Other Incomes) |
|
|
|
|
293,791 |
288,030 |
| Credit Sales for year (Electricity) |
|
|
|
|
685,512 |
672,070 |
| Accounts Receivable |
|
|
|
average |
83,010 |
81,410 |
| Accounts Receivable Turnover = Credit Sales for year / Accounts Receivable |
|
|
8.25 |
8.26 |
8.26 |
|
|
|
|
|
|
|
|
|
| d. DAYS SALES IN RECEIVABLES: (preferably 30-60 days) |
|
|
|
|
|
|
| Credit Sales for year (CNO + CME) |
|
|
|
|
685,512 |
672,070 |
| Operating Days (52 weeks x 6 days = 312 = 300) |
|
|
|
average |
365 |
365 |
| Average Daily Credit Sales = Credit Sales for year / 300, P/day |
|
|
1772.50 |
1,878 |
1,841 |
|
|
|
|
|
|
|
|
|
| Accounts Receivable (AR), P |
|
|
|
|
83,010 |
81,410 |
| Average Daily Credit Sales, P/day |
|
|
|
average |
1,878 |
1,841 |
| Average Number of Days of AR, days |
|
|
|
44.23 |
44 |
44 |
|
|
|
|
|
|
|
|
| e. INVENTORY TURNOVER: (preferably < 2.00 times a month) |
|
|
|
|
|
|
| Cost of Goods Sold (raw materials + utilities) except electricity and water |
|
|
|
390,261 |
390,156 |
|
| Average Inventory |
|
|
|
|
64,628 |
64,619 |
| Inventory Turnover = Cost of Goods Sold / Average Inventory |
|
times for the year |
average |
6.04 |
6.04 |
|
|
|
|
|
times a month |
0.50 |
0.50 |
0.50 |
|
|
|
|
|
|
|
|
| f. TOTAL LIABILITIES TO TOTAL EQUITY RATIO: (preferably < 4.00 ( = 80 / 20) ) |
|
|
|
|
|
|
| Total Liabilities |
|
|
|
|
1,160,720 |
1,053,191 |
| Total Owners’ Equity |
|
|
|
average |
480,240 |
480,240 |
| Total Liabilities to Total Equity Ratio = Total Liabilities / Total Owner’s Equity |
|
|
0.78 |
2.42 |
2.19 |
|
|
|
|
|
|
|
|
|
| g. NUMBER OF TIMES INTEREST EARNED: (preferably > 2.00) |
|
|
|
|
|
|
| Profit Before Interest and Income tax (Income Before Tax) |
|
|
|
|
76,117 |
77,561 |
| Interest Expense |
|
|
|
average |
127,744 |
114,297 |
| NUMBER OF TIMES INTEREST EARNED = Profit Before Tax / Interest Expense |
|
|
2.43 |
0.60 |
0.68 |
|
|
|
|
|
|
|
|
|
| h. RETURN ON ASSETS: (preferably > interest rate) |
|
|
|
|
|
|
| Profit Before Interest and Income tax (Income Before Tax) |
|
|
|
|
76,117 |
77,561 |
| Total Assets |
|
|
|
|
1,585,962 |
1,498,491 |
| Return on Assts = Profit Before Tax / Total Assets |
|
|
|
average |
0.05 |
0.05 |
|
|
|
|
in % |
20.81% |
4.80% |
5.18% |
|
|
|
|
Interest Rate, % |
|
12.00% |
12.00% |
|
|
|
|
|
|
|
|
| i. NET PROFIT TO ASSETS RATIO: (preferably > interest rate) |
|
|
|
|
|
|
| Net Profit After Tax |
|
|
|
|
53,282 |
54,293 |
| Total Assets |
|
|
|
|
1,585,962 |
1,498,491 |
| Net Profit to Assets = Net Profit After Tax / Total Assets |
|
|
|
average |
0.03 |
0.04 |
|
|
|
|
in % |
14.57% |
3.36% |
3.62% |
|
|
|
|
Interest Rate, % |
|
12.00% |
12.00% |
|
|
|
|
|
|
|
|
| j. NET PROFIT TO SALES RATIO: (preferable > interest rate) |
|
|
|
|
|
|
| Net Profit After Tax |
|
|
|
|
53,282 |
54,293 |
| Total Sales (Gross Revenue) |
|
|
|
|
996,126 |
976,924 |
| Net Profit to Assets = Net Profit After Tax / Total Assets |
|
|
|
average |
0.05 |
0.06 |
|
|
|
|
in % |
10.86% |
5.35% |
5.56% |
|
|
|
|
Interest Rate, % |
|
12.00% |
12.00% |
|
|
|
|
|
|
|
|
| k. RETURN ON OWNERS’ EQUITY (ROI): (preferable > interest rate) |
|
|
|
|
|
|
| Net Profit After Tax |
|
|
|
|
53,282 |
54,293 |
| Total Owners’ Equity (Partner’s Investment) |
|
|
|
|
480,240 |
480,240 |
| Return on Owners’ Equity = Net Profit After Tax / Total Owners’ Equity |
|
|
average |
0.11 |
0.11 |
|
|
|
|
|
in % |
21.17% |
11.09% |
11.31% |
|
|
|
|
Interest Rate, % |
|
12.00% |
12.00% |
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