Tuesday, April 29, 2008 Aboitiz Power income soars
ABOITIZ Power Corp. reported a recurring net income of P1.055 billion in the first quarter of this year, a 150 percent jump from the P422 million it reported in the same period last year.
In a statement to the Philippine Stock Exchange, the company said it incurred a non-recurring loss, however, of P44 million due to foreign exchange net losses resulting from the revaluation of dollar-denominated loans and placements of some subsidiaries.
This brought its total earnings to P1.011 billion.
Revenue grew 41 percent to P2.97 billion during the period from the same quarter last year.
The company said that earnings contribution from the power generation business rose P603 percent to P639 million.
Acquisitions made in 2007 drove earnings performance, providing P584 million of the total income contribution from the generation group, said the company in a statement.
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The 360 Mw Magat hydro plant contributed the largest block of earnings as it realized favorable average selling prices at the electricity spot market.
Power sales of the generation group rose over nine times to 377 Gwhrs from 36 Gwhrs year–on–year as a result of the 200 percent increase in AP’s attributable generating capacity to 490Mw from 164Mw.
For the distribution group, income contribution rose by 18 percent to P383 million from last year’s P324 million as a result of
higher electricity sales for the current quarter.
The group’s kilowatt-hour electricity sales for the period grew 17 percent year–on–year to 744 Gwhrs.
Excluding the sales contribution of the distribution utilities acquired in 2007, the group recorded an organic growth of seven percent year–on–year.
Assets
As of March 31, 2008, the company’s total assets amounted to P34.4 billion, five percent lower than at yearend 2007.
But the company said it remained in a net cash position with Cash and Cash Equivalents at P10.9 billion and total consolidated interest bearing loans at P4.2 billion.
The current ratio, a measure of the company’s liquidity, was at 2.8 times.
In January, AP broke ground for the construction of the 246MW coal-fired power plant in Cebu City, which will be completed in 2010. The project is a joint venture between 60 percent-owned Abovant Holdings and Global Formosa of the Metrobank Group.
Last March 7, AP concluded an agreement with Tsuneishi Holdings (Cebu), Inc. for the purchase of Tsuneishi’s 40 percent equity in Balamban Enerzone Corp. (BEZ) for about P178 million. This brought AP’s total ownership in BEZ to 100 percent.
Last April 3, 50 percent-owned Redondo Peninsula Energy Inc. caused the issuance of a letter of award to Formosa Heavy Industries for the supply of the boiler, steam turbine, generator and related services that will be used for the construction of a 300MW power plant in Redondo Peninsula, Subic Bay.
After receiving the necessary approvals, the project is scheduled to start construction this year and is expected to be in operation by 2011. The project is estimated to cost approximately $500 million.
AP also expects the turnover by mid–year 2008 of the 175MW Ambuklao – Binga hydroelectric plants it won in November 2007, through the government’s privatization program. Upon turnover, the Ambuklao plant will undergo two years of rehabilitation work while the Binga plant will start operations. Once repairs for Ambuklao are completed, Binga will likewise undergo rehabilitation.
It is estimated that complete rehabilitation of the two plants will boost their combined generation capacity by 20% to 30%, with annual power generation of about 760 Gwhrs. Power produced will be sold to the Wholesale Electricity Spot Market (WESM), and both plants will be operated like the Magat hydro where two thirds of total power generation is sold at peak hours.
