Aboitiz Power Corporation (AboitizPower) saw its net income increase by 2% to P20.4 billion in 2017 versus P20 billion last year.

The company recognized non-recurring losses of P2.9 billion (versus 2016’s non-recurring loss of P611 million), primarily due to asset impairment costs related to Aseagas Corporation and debt prepayment costs on GN Power-Mariveles Coal Plant Ltd. Co (GNPower-Mariveles)’s loan, partially offset by a one-off recognition of lower interest expense from an acquired loan.

Power Generation

The power generation business accounted for 83% of the EBITDA contributions from AboitizPower’s business segments and recorded a consolidated EBITDA share of P38.8 billion, up 27% YoY.

AboitizPower’s capacity sold during 2017 increased by 41% YoY, from 2,223 MW to 3,124 MW, mainly driven by the additional capacities from GNPower-Mariveles, higher generation of its hydro units, and more capacities contracted.

Power Distribution

EBITDA for AboitizPower’s power distribution business increased by 14% YoY, rising from P6.8 billion to P7.8 billion.

The group’s gross margin on a per kilowatt-hour basis increased to P1.73 during 2017 from P1.59 for 2016. The improved margins came from adequate power supply, better supply mix, and recoveries on purchased power costs.

AboitizPower’s attributable sales in the distribution group for 2017 was at 5,288 gigawatt-hours, registering a 4% increase from 2016.

Moving forward, AboitizPower sees its portfolio continuing to expand across both renewable and non-renewable sources.

“AboitizPower will continue its Balance strategy — developing a mix complementing technologies that will allow us to deliver energy reliably, reasonably, and responsibly. Our portfolio has given us advantages in both fuel mix as well as geographical spread. We will pursue renewable energy (RE) and it is our intention to actively participate in the RE market,” Moraza noted.