Aboitiz Power Corporation recorded for the first quarter of 2018 a 9% year-on-year (YoY) decrease in its consolidated net income, from P4.4 billion (bn) to P4.0 bn. The Company recognized non-recurring foreign exchange losses on the revaluation of dollar denominated liabilities amounting toP1.2 bn (versus a non-recurring loss of P577 million (mn) during the first quarter of 2017) resulting from the movements in the peso-dollar exchange rates. Without the one-off adjustments, AboitizPower’s core net income for the first quarter of 2018 amounted to P5.2 bn, 4% higher YoY. The Company also recorded an 11% YoY increase in consolidated earnings before interest, tax, depreciation and amortization (EBITDA) for the first quarter of 2018, from P10.7 bn to P11.9 bn.
“Despite the one-off adjustments we had to incur in the quarter, we continue to see modest growth of the group in both our generation and distribution businesses. On the positive note, we continue to see improvements in plant reliability and availability which has resulted in significant financial contributions. Our DU (distribution utility) business also continues to grow, thanks to growing regional economies,” Antonio R. Moraza, AboitizPower President and Chief Operating Officer, said.
“We look forward to further improving the operation of our power plants, while investing in technology to improve the services in the DUs. We are also looking forward to completing several power plant projects this year which will give us opportunities to contract and contribute to the growing economy,” Moraza added.
Results of Operations
Generation and Retail Electricity Supply
Fresh EBITDA from Pagbilao Energy Corporation’s (PEC) newly operating 400-MW Pagbilao Unit 3, increase in EBITDA from GNPower-Mariveles Coal Plant Ltd. Co from higher plant availability and higher contracting levels at our retail electricity suppliers, offset by lower EBITDA from the Company’s hydro units due to lower hydrology, led to P10.1 bn EBITDA from the Company’s generation and electricity supply business. This is a 12% increase from last year. After taking into account interest, depreciation and taxes, core net income at the end of the first quarter is P4.6 bn, which is 2% higher than last year. Due to foreign exchange losses recognized on the restatement of dollar-denominated debt, non-recurring losses amounted to P715 mn during this period (versus last year’s non-recurring loss ofP307 mn) bringing the generation and retail electricity supply net income contribution to P3.8 bn, which is 7% lower than last year.
For the period, AboitizPower’s capacity sold increased by 22% YoY, from 2,630 megawatts (MW) to 3,215 MW, primarily driven by the new capacity of PEC and an increase in the number of contracts in place compared to the same period last year.
First quarter 2018 consolidated EBITDA for the distribution business was P1.8 bn, up 4% from the same period in 2017. Higher electricity sales across all customer segments drove the increase in EBITDA. Net income contribution increased by 9% compared to the same period in 2017, from P908 mn to P992 mn.
As a result of the lag in the recovery of purchased power costs, the distribution business’ gross margin remains flat from last year’s P1.59 per kWh.
AboitizPower’s attributable sales in the distribution group for the first quarter of 2018 was 1,298 gigawatt-hours (GWh), a 7% increase from the same period last year.