The Power Generation Business Group accounted for
79% of earnings contributions from AboitizPower’s
business segments, recording an income share of
P13.9 billion for 2015, up by 3% from P13.5 billion in
the prior year. The increase is mainly attributed to the
higher net sales volumes from the coal and large hydro
business units (BUs) despite the decrease in revenues
from the geothermal BU due to a steam decline.
The coal plants generally performed well because of
lesser forced outages at the Pagbilao plant and the
commerical operations of unit 1 of Therma South’s
300-MW Davao plant in September 2015. Moreover,
the impact of the income tax holiday expiration on the
Magat, Binga, Mobile 1, and Mobile 2 plants was offset
by the lower financing cost of the large hydro BUs and
the lower operating expenses of the oil BUs.
Attributable net energy sold rose by 11% from 11,272
gigawatt hours (GWh) in 2014 to 12,550 GWh in
2015, as energy delivered through bilateral contracts
expanded by 18% to 11,383 GWh. Bilateral Contracts
Quantity (BCQ) comprised 91% of the Group’s sales
while spot market sales decreased by 28% from 1,612
GWh to 1,168 GWh. Despite the growth in energy
sales, the Group’s revenues went down slightly by 1%
to P57.8 billion because of lower average selling prices.
Higher energy sales and ancillary services increased
capacity sales by 6%, resulting to net attributable
sales of 1,900 MW. The growth was driven by the new
capacities that came in 2015, namely Hedcor’s 14-MW
Sabangan hydro plant and Therma South’s Davao
plant, along with higher ancillary revenues of the large
hydro BUs and the higher dispatch of the oil plants.
Revenues from the Tiwi and MakBan geothermal
plants decreased by 14% to P10.7 billion in 2015
largely due to lower steam flow, which translated to a
5% decline in attributable energy sold amounting to
2,643 GWh. Correspondingly, capacity sold factor went
down to 75.4%. BCQ selling prices decreased due to
lower indices and spot market prices were also lower.
Both contributed to the decline in revenues.
Meanwhile, the exploration of potential steam wells in
Negron Cuadrado and Mt. Apo areas is ongoing.
Attributable volume sold from the large hydro plants of
SN Aboitiz Power (SNAP) rose by 22% to 2,012 GWh due
to higher ancillary services, while capacity sold factor
was at 78% in 2015. Consequently, revenues increased
by 2% year-on-year to P6.4 billion due to higher sales at
the spot market and ancillary service revenues.
In April 2015, SNAP-Benguet received from the Energy
Regulatory Commission a copy of the amended
Certificate of Compliance (COC) for the Binga plant.
The COC reflects the increase of the plant’s capacity
from 125.8 MW to 140 MW, following uprating work
done from December 2014 to February 2015.
SNAP-Magat started the construction of the 8.5-MW
hydro plant along the Maris Main (South) Canal
in Ramon, Isabela after signing a Memorandum
of Agreement with the National Irrigation
Administration. The project is expected to be
completed in November 2017.