ABOITIZ Power Corporation (AboitizPower) said on Wednesday its net income in 2016 grew 14 percent to P20 billion from P17.6 billion in 2015, driven by the strong performance of its power generation business.
It also recorded a net non-recurring loss of P612 million compared to the previous year’s loss of P762 million, mainly coming from foreign exchange losses from the revaluation of dollar denominated liabilities, refinancing costs, and goodwill impairment.
Adjusting for these one-offs, its core net income rose 12 percent to P20.6 billion from P18.4 billion in 2015.
AboitizPower’s generation business accounted for 82 percent of earnings and recorded a 17 percent year-on-year increase to P16.3 billion for 2016.
The growth was largely driven by fresh contribution from Therma South. Netting out one-off items, the generation business generated P17.2 billion, or an increase of 16 percent from 2015.
Meanwhile, AboitizPower’s attributable net energy sold rose by 8 percent to 13,495 gigawatt-hours (GWh) from 12,550 GWh, as electricity sold through bilateral contracts, which made up 91 percent of total energy sold last year, expanded by 8 percent to 12,279 GWh.
Spot market sales increased by 4 percent to 1,216 GWh from 1,168 GWh. In terms of capacity, these translate to 2,097 megawatts (MW) of attributable energy sold.
As of end 2016, AboitizPower’s net sellable capacity was at 2,975 MW after the Philippine Competition Commission’s approval of the GNPower Mariveles acquisition.
“We are looking forward to add more capacity in the next few years and move closer to our target generating capacity of 4,000 MW by 2020, to be sourced from a balanced mix of energy sources,” AboitizPower President and Chief Operating Officer Antonio R. Moraza said.
The power distribution business, which contributed 18 percent of earnings, reported a 4 percent drop in income to P3.4 billion from P3.8 billion.
Total attributable electricity sales increased by 7 percent in 2016 to 5,105 GWh as energy sales grew across all customer segments.
Meanwhile, the group’s gross margin on a per kilowatt-hour basis decreased to P1.59 from P1.61 a year before, mainly due to under-recoveries because of a shift in supply mix.
AboitizPower is the holding company for the Aboitiz Group’s investments in power generation, distribution, and retail electricity services.