AboitizPower raises net income by 4% in Q1 2024

Aboitiz Power Corporation (AboitizPower) further built on its solid financial foundation with a net income of P7.9 billion in the first quarter of 2024, a figure that is 4% higher than the P7.5 billion recorded in the same period last year.

Stripping out non-recurring items, AboitizPower’s core net income increased by 3% to P7.8 billion in the January to March period from P7.6 billion year-on-year.

These gains were primarily attributed to higher generation portfolio margins. Energy sold by AboitizPower’s generation and retail electricity supplier segments for the period increased by 1% to 8,812 gigawatt hours (GWh) from 8,725 GWh the previous year. The segments had earnings before interest, taxes, depreciation, and amortization (EBITDA) of P13.8 billion in the first quarter, higher than P13.1 billion in the same period last year.

Meanwhile, AboitizPower’s distribution business increased its energy sales by 9% to 1,526 GWh from 1,404 GWh due to the higher demand driven by the effect of the El Niño phenomenon. An 11% decrease in EBITDA to P2.6 billion was on account of favorable timing in pass through charges that were recognized in 2023 resulting from declining fuel prices.

“AboitizPower continued its strong performance in the first quarter of 2024, building on its successful 2023. This momentum reflects the effectiveness of our investments and growth strategies, which further reinforces our dedication to providing reliable, affordable, and sustainable power while driving the nation’s development,” said AboitizPower President and Chief Executive Officer Emmanuel V. Rubio.

In 2023, AboitizPower had a full-year net income of P33.1 billion, 27% higher than the P26.0 billion recorded the previous year. Its core net income increased by 29% to P32 billion from P24.8 billion during the same period in 2022.

“Looking ahead, we’re excited about the new growth drivers emerging this quarter. By leveraging these opportunities, we remain confident in our ability to unlock shared success for all our stakeholders,” Rubio added.

For 2024, AboitizPower, together with its partners, allocated P73 billion in capital expenditures, more than double the P26 billion in 2023. Sustaining the Company’s growth strategy of adding 3,700 megawatts (MW) of new renewable energy capacity en route to 4,600 MW by 2030, 72% of capital expenditures is earmarked for its renewable energy pipeline.

As part of the initial expansion phase of 1,200 MW, renewable energy projects totalling a capacity of 176 MW is set to come online in the first half of 2024 — the 17 MW binary geothermal power plant in Tiwi, Albay and the 159 MW solar plant in Laoag, Pangasinan. Construction for an additional 218 MW is ongoing.

The second phase of AboitizPower’s expansion will see another 1,700 MW of new solar and wind power.

The rest of the P73 billion budget for 2024 is allocated towards further improving the reliability of AboitizPower’s baseload power plants; land acquisition; and new substations and meters for its distribution business. The figures do not yet include the investment in Chromite Gas Holdings.

To recall, AboitizPower, through its subsidiary, Therma NatGas Power, entered into an investment agreement with Meralco PowerGen Corporation to acquire a 40% stake in Chromite Gas, marking its entry into the liquefied natural gas (LNG) space. The investment involves two gas-fired power plants — the 1,278 MW Ilijan power plant and a new 1,320 MW combined cycle power facility — as well as an LNG import and regasification terminal.

The integrated LNG facility will eventually contribute a critical capacity of more than 2,500 MW, which is considered the largest in the country’s history. LNG is regarded as a natural complement to variable renewable energy due to its ability to ramp up output more quickly, addressing the intermittencies of solar and wind power.