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SFA SEMICON Philippines Corp. (SSP) said it has collected P11.44 million from the government as part of the seventh tranche of reimbursements of an incentive program that allows for discounted power rates.
The listed firm disclosed on Wednesday that it received the amount as part of a discounted electricity incentive as per Executive Order (EO) No. 856 alongside its lease agreement with Clark Development Corp.
The company’s manufacturing plant is located at the Clark Freeport Zone in Pampanga.
EO 856 is an expansion of EO 666, which states that the government must support the power infrastructure requirements of Clark Freeport Zone and support the investment of Texas Instruments in Clark.
“This amount is the seventh partial reimbursement of the Government through CDC of the power discounts for electricity utilized and fully paid by SSP since the commencement of its commercial operations in 2011,” the company said.
With this, the company’s cash and cash equivalents will be increased by around $226,000.
Incorporated in 2010, SSP’s businesses includes the operation of a plant for the manufacture, assembly, testing, and warehousing of semiconductor products. It supplies its products to South Korean electronics giant Samsung Electronics Co., Ltd.
In the first quarter of 2017, the company booked earnings of $836,000, dropping from the $4.2 million it posted in the same period a year ago. SSP attributed the decrease in net income to the increase in raw materials and other manufacturing costs that totaled $47.73 million.
Shares in SSP increased by six centavos or 1.95% to close at P3.13 each on Wednesday.
SOURCE: http://bworldonline.com/sfa-semicon-gets-partial-reimbursement-govt/