Aboitiz Power posts record net income

MANILA, Philippines - Aboitiz Power, the power generation arm of the Aboitiz Group, recorded a net income of P13.2 billion in the first nine months of the year, down eight percent from P14.3 billion in the same period last year.

In a disclosure to the Philippine Stock Exchange (PSE), Aboitiz Power said the company had a non-recurring loss of P209 million, mostly due to the revaluation of consolidated dollar-denominated loans and placements.

Adjusting for this one-off, the company’s net income for the first nine months of 2014 amounted to P13.4 billion, down by 15 percent year-on-year.

The company’s generation business accounted for 81 percent of earnings contributions from the Aboitiz Power’s business segments, translating to an income share of P10.8 billion for the first nine months of 2014, down 11 percent year-on-year.

 “The decline is attributed to the full-year impact of the implementation of the Geothermal Resource Supply Contract of the Tiwi-Makban plants, limited operations of Magat plant due to low water levels, and the expiration of the Pagbilao plant’s income tax holiday starting January 2014.  Netting out one-off items, the income contribution of Aboitiz Power’s generation business amounted to P11 billion for the period, which was 19 percent lower than last year,” the company said.

In terms of electricity sold, Aboitiz said net generation rose by two percent year-on-year to 8,395 GWh from 8,245 GWh, as electricity sold through bilateral contracts, which made up 85 percent of total energy sold during the period, expanded by five percent to 7,129 GWh.

The company’s spot market sales, on the other hand, declined by 15 percent to 1,266 GWh from 1,484 GWh on the back of low water levels, which constrained the operations of the Magat, Ambuklao, and Binga plants.