AboitizPower net income up 13%

ABOITIZ Power Corp. recorded a net income of P18.4 billion for the first nine months of 2012, a 13 percent increase compared to the P16.2 billion recorded during the same period in 2011.

The revaluation of group-wide dollar-denominated loans and placements resulted in a non-recurring gain of P1.2 billion. In addition, AboitizPower logged P668 million one-off losses during the nine-month period. With these adjustments, AboitizPower’s core net income as of Sept. 30 amounted to P17.9 billion, up by 15 percent year-on-year.

In the third quarter of 2012, AboitizPower’s net income was P6.2 billion, a 10 percent improvement year-on-year. The strengthening of the peso resulted in a P220 million non-recurring gain due to the revaluation of dollar-denominated liabilities and placements across the group. Netting out one-off items, AboitizPower’s core net income for the third quarter of 2012 was P6.4 billion, which is 13 percent higher than the same period last year.

“AboitizPower’s third quarter results reflected the higher demand coming from both our
generation and distribution businesses. This was further boosted by higher Wholesale Electricity Spot Market (WESM) prices due to higher demand and supply shortage because of several plant outages. We also saw improvement in the distribution margins with the implementation of Performance Based Regulation (PBR) and reduction of systems loss,” said AboitizPower president and CEO Erramon Aboitiz.

Economic growth

“This growth in demand reflects the overall economic growth that our nation is enjoying. AboitizPower is steadfast in our commitment to powering our nation’s future by providing ample power when needed, at the most competitive cost, utilizing the latest technology to allow us to harness power with the least adverse effect to the environment,” Aboitiz said.

The generation business contributed P17.2 billion in the first nine months of the year, accounting for 89 percent of earnings contributions from AboitizPower’s business segments. This is up 12 percent higher year-on-year. Netting out one-off items, AboitizPower’s generation business earned P16.4 billion for the period, which is 12 percent higher than in the same period last year.

The distribution business contributed P2.2 billion as of September, a 24 percent year-on-year increase. Total attributable electricity sales increased by six percent year-on-year, from 2,764 GWh to 2,935 GWh. Demand from all customer segments continued to grow with the industrial segment recording a seven percent year-on-year expansion in volume sales, while residential and commercial accounts registered five percent and three percent growth, respectively. Gross margin for the group improved by 13 percent mainly due to the implementation of the distribution utilities’ approved rates under the PBR. Another driver for the group’s enhanced gross margin was the reduced systems loss, with AboitizPower’s wholly owned subsidiary Visayan Electric Co. reducing its level of system loss by 0.7 percentage points as a result of initiatives implemented during the period in review.

“As the demand for energy grows, AboitizPower’s distribution utilities will contract power to ensure our distribution utilities have ample and competitive power, eliminating the volatility of the WESM and possible shortages of power. We firmly believe that our customers are looking at assured supply of power with as little volatility as possible,” Aboitiz said.

For July to September, the power distribution group registered a five percent increase in its income contribution, from P731 million to P765 million. AboitizPower’s attributable electricity sales for the quarter ending Sept. 30 was at 986 GWh, a four percent improvement from last year’s 949 GWh. The strong performance of the distribution group can be attributed to the increase in sales across all customer classes as compared to the same period last year. Gross margin on a group-wide basis improved by five percent as the approved rates under the PBR scheme were implemented.

Assets

As of Sept. 30, AboitizPower’s total consolidated assets amounted to P159.9 billion, four percent higher than yearend 2011 level of P153.5 billion.

AboitizPower’s consolidated Cash and Cash Equivalents was registered at P26.8 bn, while total consolidated interest-bearing liabilities were at P68.3 billion.

AboitizPower is the holding company for the Aboitiz Group’s investments in power generation, distribution, retail and power services. It is a major producer of Cleanergy, its brand for clean and renewable energy in the Philippines with several hydroelectric and geothermal assets in its generation portfolio, and also has non-renewable power plants located across the country. The company owns distribution utilities that operate in high-growth areas in Luzon, Visayas and Mindanao. (PR)