Higher costs curb Aboitiz Power profit
Aboitiz Power Corp. saw its earnings in the January to September slip by 15 percent despite stronger energy sales volume posted during the period.
In a disclosure on Wednesday, the company said core net income had reached P23.1 billion, down from P27.2 billion a year earlier.
The drop in profit was blamed on the full impact of depreciation and interest costs for GNPower Dinginin Ltd. Co.
Weaker spot market prices also offset the improvements recorded in the group’s power sales volume.
Its generation and retail electricity supply operations sold more energy in the first nine months, posting about 19 percent growth to 32,138 gigawatt hours (GWh) from 26,910 GWh a year ago.
Aboitiz Power’s distribution business likewise reported higher energy sales at 5,166 GWh, up 5 percent from 4,939 GWh.
But due to the decline in spot market prices, cash flow, as measured by earnings before interest, taxes, depreciation and amortization, ended flat at P56.3 billion. This was despite contributions from Chromite Gas Holdings Inc. (CGHI) and three new solar plants.
CGHI is Aboitiz Power’s joint venture with Pangilinan-led Manila Electric Co. Both parties have interest in two gas-fired power plants—the 1,200 megawatt (MW) facility of South Premiere Power Corp. and the 1,275 MW Excellent Energy Resources, Inc.
The new solar farms, meanwhile, include the 159-MWp Laoag solar power plant in Pangasinan, 45-MWp Armenia solar project in Tarlac and 173-MWp Calatrava solar facility in Negros Occidental.
The company has business in power generation, distribution, retail electricity services and distributed energy. Its power generation portfolio includes both renewable and nonrenewable generation plants.
For this year, Aboitiz Power has earmarked P78.1 billion in capital expenditures, with the bulk or 66 percent of the investment going to renewables.
Aside from deploying solar plants, the group has several clean power assets, including geothermal, large hydro, run-of-river hydro, wind and battery energy storage systems.
It generates more than 1,900 MW of clean electricity, with the firm targeting to grow this to 4.6 gigawatts of capacity by 2030.
