AboitizPower first semester net income up by 24%
Aboitiz Power Corporation’s (AboitizPower or the Company) first half bottomline performance recorded a 24% year-on-year (YoY) increase, from P8 billion to P10 billion. This translated to earnings per share of P1.35. The revaluation of consolidated dollar-denominated assets and liabilities resulted to a non-recurring loss of P70 million (versus last year’s loss of P142 million). Adjusting for the foreign exchange losses and the one-offs recognized by the parent in the second quarter, the Company’s core net income for the first semester of 2016 amounted to P9.8 billion, up by 20% YoY.
“Together with our partners, our net sellable capacity has grown to 3,350 MW. We are pursuing more projects – baseload, solar, biomass, hydro and geothermal – that will allow us to strengthen our balanced mix portfolio,” Antonio R. Moraza, AboitizPower President and Chief Operating Officer, said.
“We believe that it is important to provide this balanced mix of energy to support the needs of our country with adequate, reliable and competitively priced power,” Moraza added.
On a YTD basis, the generation business group accounted for 82% of earnings contributions from AboitizPower’s business segments, recording an income share of P8.1 billion for the first semester of 2016, up 27% YoY. Netting out one-off items, AboitizPower’s generation business amounted to P8.2 billion for the period, 25% higher than last year.
As of semester-end, AboitizPower’s attributable capacity sales rose by 13% YoY from 1,795 megawatts (MW) to 2,020 MW. Therma South’s new capacity contribution primarily accounts for the increase in capacity. Magat Dam’s better water inflow, particularly in June, further augmented capacity sales. Consequently, attributable energy sold grew by 21% YoY, from 5,709 gigawatt-hours (GWh) to 6,889 GWh. Bilateral sales made up 93% of the total volume sold, which expanded by 28% to 6,414 GWh. Spot sales decreased by 31% YoY from 685 GWh to 475 GWh. Higher dam elevation at the start of the year and better than expected water inflows allowed SN Aboitiz Power Magat to realize 23% higher ancillary sales volume despite El Niño.
The power distribution group’s earnings share for the first semester of 2016 grew by 3%, from P1.7 billion to P1.8 billion. Total attributable electricity sales increased by 7% YoY, from 2,338 GWh to 2,512 GWh. The increase in volume sold came from Visayan Electric Co., Inc., Davao Light & Power Co., Inc., and San Fernando Electric Light and Power Co. Meanwhile, the group’s gross margin during the period declined to P1.50 per kilowatt-hour (kWh) from P1.57 per kWh a year ago. This was mainly due to Davao Light’s under-recoveries as a result of a shift in supply mix.