Aboitiz Power Corporation recorded a 24 percent increase in net income at P15.1 billion in the first nine months of the year, from P12.2 billion a year earlier, translating to earnings per share of P2.05.
Its bottom line was fueled by a higher income contribution from its power generation business, led by the Therma South power plant in Davao City.
“We recognize the importance of providing baseload capacity – such as our Therma South and Pagbilao thermal power plants – in ensuring reliable and affordable power for our consumers. In addition, we continue to employ new and more efficient technologies, operating our power plants at par with government standards as part of our commitment to a responsible power generation process,” AboitizPower President and Chief Operating Officer Antonio R. Moraza said on Wednesday.
The company registered a non-recurring loss of P102 million from the revaluation of consolidated dollar-denominated loans and placements net of gains on acquisition from a year-earlier loss of P805 million.
Adjusting for non-core items, its core net income in the first nine months of 2016 amounted to P15.2 billion, up 17 percent year-on-year.
Year-to-date, the generation business accounted for 80 percent of earnings contributions with an income share
of P12 billion, up 26 percent from a year earlier, largely driven by Therma South’s new contribution
Netting out one-off items, the income contribution of the generation business amounted to P12.5 billion, up 20 percent.
The company noted that Therma Power Inc. completed the agreements for acquiring The Blackstone Group’s effective partnership interests in GNPower Mariveles and GNPower Dinginin. The transaction is still subject to approval by the Philippine Competition Commission.
“We are optimistic that we will realize our target of 4,000 megawatt (MW) capacity by 2020, from renewable and thermal sources. We will continue to strive for a balanced-mix portfolio to provide ample power when needed at a reasonable cost, keeping in mind our responsibility to the environment and to our host communities,” Moraza said.
The power distribution group’s contributed earnings increased by 11 percent at P2.9 billion from P2.6 billion. The group’s gross margin decreased by 3 percent at P1.59 per kilowatt hour (kWh) from P1.64 per kWh, reflecting under recoveries as a result of the shift in supply mix.
AboitizPower is the holding company for the Aboitiz Group’s investments in power generation, distribution, and retail electricity services.