Aboitiz Power 2015 net income rises 5%

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ABOITIZ Power Corp., the listed power generation unit of the Aboitiz Group, announced on Wednesday that its 2015 income went up by 5 percent to P17.6 billion from P16.7 billion in 2014 driven by higher volume sales from the coal and large hydro groups.

The 2015 net income translates to earnings per share of P2.39.

The company booked a net non-recurring loss of P762 million versus last year’s loss of P136 million due to the revaluation of consolidated dollar-denominated assets and liabilities resulting from movements in the peso-dollar exchange rates.

Adjusting for these one-offs, Aboitiz Power’s core net income for 2015 amounted to P18.4 billion, up 9 percent year-on-year.


On a full-year basis, the power generation business accounted for 79 percent while power distribution contributed to 21 percent of earnings.

The power generation segment recorded an income share of P13.9 billion for 2015, up 3 percent from the previous year. Netting out one-off items, AboitizPower’s generation business generated P14.8 billion for the period, which was 9 percent higher than in 2014.

“The growth was attributable to the higher sales volume from the coal and large hydro groups that offset the decrease in revenues from the geothermal group due to steam decline,” AboitizPower said.

“Moreover, the impact of Magat, Binga, and Therma Marine plants’ ITH [income tax holidays]expiration were offset by the large hydro group’s lower financing cost and the geothermal group’s and oil business unit’s lower operating expenses,” it said.

Attributable net generation for 2015 was up 11 percent year-on-year, from 11,272 GWh [gigawatt-hours] to 12,550 GWh, as electricity sold through bilateral contracts, which made up 91 percent of total energy sold during the period, expanded by 18 percent to 11,383 GWh.

On the other hand, spot market sales decreased by 28 percent from 1,612 GWh to 1,168 GWh.

Completion of the construction of the 14-megawatt Sabangan run-of-river hydroelectric and 260-MW (net) Davao Coal resulted in an increase in net attributable sellable capacity to 2,532 MW.

“We remain on track with our project pipeline as we welcomed new capacity from a number of power plants last year. This puts us well on the path to hitting 4,000 MW in national capacity by 2020 to meet the country’s energy needs,” Antonio Moraza, AboitizPower president and chief operating officer, said.

“Our portfolio of power plants composed of a right mix of renewable and non-renewable technology is a testament to our commitment to provide reliable, ample, and reasonably priced power with the least impact on our environment and our host communities,” Moraza said.

Meanwhile, AboitizPower said the power distribution group’s earnings share for 2015 increased by 19 percent to P3.8 billion, while the group’s gross margin on a per kWh [kilowatt-hour] basis in 2015 decreased to P1.61 from P1.71 a year earlier.

“This was brought about by the continued operations of Davao Light’s embedded plant to meet the shortfall in the Mindanao grid. Strong demand growth of lower-margin industrial customers also contributed to the decline in the per kilowatt margins,” the company said.

It said overall improved performance of the group is mainly from higher attributable electricity sales, which increased 6 percent to 4,759 GWh, as energy sales grew across all customer segments as well as the full year contributions from LiMA EnerZone, which was acquired last year, Aboitiz Power said.

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