AboitizPower posts P9.7 billion net income in first half

As 2017’s first half drew to a close, Aboitiz Power Corporation (AboitizPower) saw an 18% year-on-year (YoY) increase in consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization), from P18.4 billion to P21.8 billion.

"Our core power generation and power distribution businesses have continued to post significant growth. Our new power plants are contributing significantly while our existing power plants are continuously improving in terms of availability and reliability. We will continue, likewise, to take advantage of the economic growth in our franchise areas by providing reliable and cost-effective power coupled with the best possible service,” said Antonio R. Moraza, AboitizPower President and Chief Operating Officer.

"Our projects in the pipeline are on track and continue to be aligned with our balanced-mix strategy. These projects will push us to reaching our target of 4,000 MW of net attributable capacity by 2020,” Moraza added.

However, increased interest expense and depreciation narrowed the growth at the core net income level to 6% YoY, from P9. 8 billion to P10. 5 billion.

The company posted a net income of P9. 7 billion for the first half of the year -- a 2% decline YoY attributed to non-recurring losses of P744 million (versus last year’s gain of P130 million) from foreign exchange losses on the revaluation of dollar-denominated liabilities.

Power Generation

The power generation business group accounted for 84% of AboitizPower’s EBITDA, recording a consolidated share of P18.0 billion for the first half of 2017, up 22% YoY. At the core net income level, the generation business grew 8% YoY from P8.2 billion to P8.9 billion.

After taking into account one-off items, AboitizPower’s generation business income contribution amounted to P8. 1 billion, almost flat compared to the same period last year.

For the period, AboitizPower’s capacity sold increased by 33% YoY, from 2,033 megawatts (MW) to 2,706 MW, mainly driven by the additional capacity of GNPower Mariveles Coal Plant Ltd. Co. and higher capacity sold from hydro units due to better hydrology in 2017.

Power Distribution

EBITDA for the distribution business increased by 3% YoY from P3.3 billion to P3.4 billion. Net income contribution increased by 3% YoY for the first half of 2017 to P1.8 billion.

The group’s gross margin on a per-kilowatt-hour basis for the period increased to P1. 63 from P1. 50 in the first half of the year. The improved margins came from better supply mix and recoveries on purchased power costs.

AboitizPower’s attributable sales in the distribution group for the period was at 2,546 gigawatt-hours, registering a 1.4% increase from the same period last year. About AboitizPower AboitizPower is the holding company for the Aboitiz Group’s investments in power generation, distribution, and retail electricity services.

The company is one of the largest power producers in the Philippines with a right-mix portfolio of assets located across the country. It is a major producer of Cleanergy, its brand for clean and renewable energy with several hydroelectric and geothermal power generation facilities. It also has various fossil-fired power plants in its generation portfolio to support the baseload and peak energy demands of the country. The company also owns distribution utilities that operate in high-growth areas in Luzon, Visayas, and Mindanao, including the second and third largest private utilities in the country.