AboitizPower net income up 2% in 2017
March 16, 2018
Aboitiz Power Corporation saw its net income increase by 2% to P20.4 billion in 2017 versus P20 billion last year. The Company recognized non-recurring losses of P2.9 billion (versus 2016’s non-recurring loss of P611 million), primarily due to asset impairment costs related to Aseagas Corporation (“Aseagas”) and debt prepayment costs on GN Power-Mariveles Coal Plant Ltd. Co (“GNPower-Mariveles”)’s loan, partially offset by a one-off recognition of lower interest expense from an acquired loan.
“Our bottomline was definitely affected with our decision to cease the operations of Aseagas. But looking at the actual performance of our operations, we have continued to grow in 2017, thanks to the improved reliability and availability of our plants,” said Antonio R. Moraza, AboitizPower President and Chief Operating Officer.
Without these one-off adjustments, the company’s core net income grew 13% in 2017, from P20.6 billion to P23.3 billion. The Company’s consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) grew from P38.1 billion to P47.7 billion, a 25% year-on-year (YoY) increase, driven by the contribution of GNPower-Mariveles to the coal group, and higher water inflows in the hydro group.
The power generation business accounted for 83% of the EBITDA contributions from AboitizPower’s business segments and recorded a consolidated EBITDA share of P38.8 billion, up 27% YoY. AboitizPower’s capacity sold during 2017 increased by 41% YoY, from 2,223 MW to 3,124 MW, mainly driven by the additional capacities from GNPower-Mariveles, higher generation of its hydro units, and more capacities contracted.
EBITDA for AboitizPower’s power distribution business increased by 14% YoY, rising from P6.8 billion to P7.8 billion.
The group’s gross margin on a per kilowatt-hour basis increased to P1.73 during 2017 from P1.59 for 2016. The improved margins came from adequate power supply, better supply mix, and recoveries on purchased power costs. AboitizPower’s attributable sales in the distribution group for 2017 was at 5,288 gigawatt-hours, registering a 4% increase from 2016.
Moving forward, AboitizPower sees its portfolio continuing to expand across both renewable and non-renewable sources.
“AboitizPower will continue its Balance strategy — developing a mix complementing technologies that will allow us to deliver energy reliably, reasonably, and responsibly. Our portfolio has given us advantages in both fuel mix as well as geographical spread. We will pursue renewable energy (RE) and it is our intention to actively participate in the RE market,” Moraza noted.