Aboitiz Power profit soars 35%

Aboitiz Power Corp’s. net earnings surged 35 percent in the first nine months of the year to P3.17 billion on the continued strong growth of its power generation business.

In a financial report filed with securities regulators, Aboitiz Power said the net income figure translated to earnings per share of 43 centavos.

The power generation business turned in P1.99 billion in net profit, registering a 66 percent year-on-year rise from last year’s P1.2 billion, mainly due to the incremental earnings contribution from 2007 acquisitions, particularly from the 232 megawatt Steag coal power plant. Total power sold increased by 130 percent from 566 gigawatt-hours to 1,300 gwh.

Improved capacity factors for the hydro plants due to higher rainfall also led to the improvement in power generation, Aboitiz Power said.

Recurring net income amounted to P3.45 billion or 73 percent higher than the year earlier’s P1.99 billion.

During the period under review, Aboitiz Power posted a non-recurring net loss of P281 million due to foreign exchange net losses of P535 million resulting from the revaluation of dollar-denominated loans and placements of some of its subsidiaries and the reversal of a P254-million provision made by an associate company due to an arbitration settlement.

The firm’s power distribution business likewise reported a six-percent rise in net income to P1.12 billion on higher electricity sales.

The group’s electricity sales rose 17 percent from 1,990 gwh to 2,329 gwh. Aside from the incremental volume sales from the 2007 acquisitions, expansion in Subic Enerzone’s industrial segment accounted for the strong growth of the distribution group, with power demand increasing mainly due to the operation of the Hanjin shipyard. On an organic basis, the group recorded a growth of 5.5 percent year-on-year.

As of Sept. 30, 2008, Aboitiz Power’s total assets stood at P39.65 billion, up 10 percent from year-end 2007 levels.