AboitizPower posted 5% net-income hike in 2015

by Lenie Lectura – March 9, 2016

from Business Mirror

ABOITIZ Power Corp. on Wednesday reported a 5-percent hike in its reported net income in 2015 compared to a year ago, buoyed by stronger sales in both power generation and distribution segments.

Full-year 2015 income grew from P16.7 billion to P17.6 billion. Core net income stood at P18.4 billion, up by 9 percent from the previous year.

The company’s power-generation business accounted for 79 percent of earnings contributions from Aboitiz Power’s business segments, recording 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 last year,” it said.

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.

Moreover, the impact of Magat, Binga and Therma Marine plants’ income-tax holiday expiration was offset by the large hydro group’s lower financing cost and the lower operating expenses of the geothermal group and the oil business unit.

“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 megawatts [MW] in national capacity by 2020 to meet the country’s energy needs,” said Antonio R. Moraza, AboitizPower President and COO.

“Our portfolio of power plants composed of a right mix of renewable and nonrenewable 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.

For the whole of 2015, AboitizPower’s attributable net generation rose by 11 percent year-on-year, from 11,272 gigawatt hours (GWh) 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. Spot market sales decreased by 28 percent from 1,612 GWh to 1,168 GWh.

Meanwhile, the power distribution group’s earnings share last year increased by 19 percent, from P3.2 billion to P3.8 billion. This is equivalent to 21 percent of earnings contributions from AboitizPower’s business segments.