AboitizPower 2016 net income up 14% year-on-year
Aboitiz Power Corporation (AboitizPower) reported a 14% increase in income performance for the full year 2016 to P20 billion from P17.6 billion in 2015. The positive result, which is attributed to the strong performance of its generation business, translated to earnings per share of P2.72.
The company registered a net non-recurring loss of P612 million (versus the previous year’s loss of P762 million) mainly coming from forex losses from revaluation of dollar denominated liabilities, refinancing costs, and goodwill impairment. Adjusting for these one-offs, its core net income rose by 12% to P20.6 billion from P18.4 billion in 2015.
Power Generation
AboitizPower’s generation business accounted for 82% of the company’s earnings, recording an income share of P16.3 billion for 2016, up 17% year-on-year (YoY).
The growth was largely driven by fresh contribution from Therma South. Netting out one-off items, the generation business generated P17.2 billion or an increase of 16% from 2015.
Meanwhile, AboitizPower’s attributable net energy sold rose by 8% to 13,495 gigawatt-hours (GWh) from 12,550 GWh, as electricity sold through bilateral contracts which made up 91% of total energy sold last year expanded by 8% to 12,279 GWh. Spot market sales increased by 4% to 1,216 GWh from 1,168 GWh. In terms of capacity, these translate to 2,097 megawatts (MW) of attributable energy sold.
As of end 2016, AboitizPower’s net sellable capacity is at 2,975 MW after the Philippine Competition Commission’s approval of the GNPower Mariveles acquisition.
“Amid the rising demand for power generated by a growing economy, we will work hard to further strengthen our relationships with our various stakeholders and customers. We are looking forward to add more capacity in the next few years and move closer to our target generating capacity of 4,000 MW by 2020, to be sourced from a balanced mix of energy sources,” said AboitizPower President and Chief Operating Officer Antonio R. Moraza.
Power Distribution
The power distribution business, which contributed 18% of the company’s earnings, reported a 4% drop in earnings share to P3.4 billion from P3.8 billion.
Total attributable electricity sales increased by 7% YoY, to 5,105 GWh from 4,759 GWh as energy sales grew across all customer segments. Meanwhile, the group’s gross margin on a per kilowatt-hour basis decreased to P1.59 from P1.61 a year ago. The decline mostly came from the under-recoveries as a result of a shift in supply mix.
