AboitizPower profit hits P17 billion in H1

MANILA, Philippines — The earnings of Aboitiz Power Corp. slipped by four percent to P17.1 billion in the first half from P17.8 billion in the same period last year, despite higher energy sales.

The listed power arm of the Aboitiz Group blamed the lower earnings on the recognition of depreciation and interest for GNPower Dinginin Ltd. Co.’s (GNPD) Units 1 and 2.

Similar to its sister plant, GNPower Mariveles Coal Plant, GNPD operates under the private limited partnership of AboitizPower’s Therma Power Inc. and Ayala-led AC Energy Holdings Inc.

Even without foreign exchange and derivative gains, the core earnings of AboitizPower would also be lower at P17.1 billion in the first semester from the P17.8 billion earned previously.

In the generation and retail electricity supply business, the company’s beneficial earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 10 percent to P33 billion from P30 billion.

The growth was propelled by improved portfolio margins and the activation of AboitizPower’s solar plants in Pangasinan, with energy sales growing to 17,758 gigawatt-hours (GWh) from 17,736 GWh.

Meanwhile, the beneficial EBITDA in the distribution business was down by 16 percent to P4.2 billion from P5 billion in 2023, which included favorable timing of pass-through charges.

Energy sales in this segment, however, edged nine percent higher to 3,256 GWh from last year’s 2,983 GWh on the back of robust gains from residential, commercial and industrial customers.

AboitizPower closed the first half with a beneficial EBITDA of P36.3 billion, up by eight percent year-on-year.

“Our financial performance in the first half of 2024 is a testament to our strategic focus on operational efficiency and adaptability to market conditions,” AboitizPower president and CEO Danel Aboitiz said.

The newly appointed Aboitiz executive said the improvement in EBITDA has positioned the company for continued success to “support the country’s economic growth and prosperity.”

As of end-June, AboitizPower’s total assets amounted to P503.4 billion, while its total liabilities and attributable equity stood at P247.4 billion and P185.7 billion, respectively.