AboitizPower earns P4.4 billion in first quarter of 2017
Aboitiz Power Corporation (AboitizPower) recorded an increase of 13% year-on-year (YoY) in beneficial earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter ending March 31, 2017, from P9.5 billion to P10.8 billion. Increased interest expense and depreciation narrowed the growth at the core net income level to 4% YoY, from P4.8 billion to P5.0 billion.
The company recognized non-recurring losses of P577 million (versus last year’s gain of P242 million) from foreign exchange (forex) losses on the revaluation of dollar-denominated liabilities and mark-to-market of derivatives. These one-off losses brought AboitizPower’s net income for the first quarter of 2017 to P4.4 billion, which is 13% lower YoY.
Business Segments
Power Generation
For the quarter ending March 31, 2017, the power generation business recorded a beneficial EBITDA increase of 14% YoY from P 8.1 billion to P 9.2 billion coming from strong performance of the hydro units and fresh GNPower Mariveles Coal Plant Ltd., Co. (GMCP) contribution. Increased interest expense and depreciation from the initial take up of GMCP costs narrowed the growth at the core net income level to 5% YoY. Non-recurring losses of P577 million (versus last year’s gain of P242 million) from forex losses on the revaluation of dollar-denominated liabilities and mark-to-market of derivatives brought the net income of the group to P3.6 billion, 15% lower as compared to the same period last year.
For the period, AboitizPower’s attributable net energy sold remained flat YoY, from 3,451 gigawatt-hours (GWh) to 3,448 GWh as the contribution of GMCP and the increase in hydro plants’ output were offset by the outages of Therma South, the lower dispatch of oil units, and lower steam supply affecting the Tiwi plant output as it continued to recover from the effects of Typhoon Nina.
“We continue to leverage on our portfolio of renewable and thermal power plants, giving us the flexibility to respond to the needs of our customers and the market while assuring our customers of reliability of supply and our technical support,” said Antonio R. Moraza, AboitizPower President and Chief Operating Officer.
Power Distribution
On the back of higher margins, EBITDA for the distribution business increased by 9% YoY. Net income contribution increased 7% YoY for the first quarter of 2017, from P851 million to P908 million.
The group’s gross margin on a per kilowatt-hour basis for the period increased to P1.59 from P1.46 in the first quarter of 2017. The increase came from improved margins as operating costs decreased due to the lower dispatch of Davao Light’s Bajada Power Plant versus the same period last year. Further improving margins were better recoveries on purchased power costs.
AboitizPower’s attributable sales for the period was at 1,208 GWh, remaining close to flat compared to the same period last year.
“Our distribution units continue to grow, riding on the expanding economy, renewed confidence in our government and the continued influx of investments into our distribution areas,” Moraza noted.
