Friday, August 01, 2008 Power firm’s ‘recurring’ income reaches P2.19B for 1st quarter
ABOITIZ Power Corp. (AP) ended the first semester of 2008 with a recurring net income of P2.19 billion, a 136 percent year-on-year growth versus last year’s P926 million.
During the period, the company had a non-recurring net loss of P122 million due to foreign exchange net losses of P268 million.
This was due to the revaluation of dollar-denominated loans and placements of some of its subsidiaries and the reversal of a P145 million provision made by an associate company due to an arbitration settlement.
This brings AP’s total earnings to P2.06 billion for the period, still recording a bottomline year-on-year growth of 84 percent. This translates to earnings per share of P0.28 for the first semester of 2008.
The power generation business shored in a net income contribution of P1.32 billion, recording a 182 percent year-on-year growth from last year’s P468 million.
Contributions
The strong growth can be attributed to the incremental earnings contributions from 2007 acquisitions of P633 million, with major contributions coming from the 232-megawatt (MW) Steag coal power plant and the 360-MW Magat hydro power plant, and the improved performance of AP’s other generation assets.
Higher electricity sales for the period resulted to an income contribution from the power distribution business of P767 million, up by 15 percent from last year’s P669 million.
Excluding the sales contribution of the distribution utilities acquired in 2007, the group recorded a growth of six percent year-on-year.
As of June 30, the com-pany’s total assets amounted to P36.79 billion, slightly up by two percent from year-end 2007 levels.
The company remains in a net cash position with cash and cash equivalents at P10.31 billion and total consolidated interest bearing loans at P4.50 billion.
Settlement
In April 2008, 50 percent-owned Luzon Hydro Corp. (LHC) entered into a Settlement Deed with Transfield Philippines Inc. (TPI), the EPC contractor for its 70-MW Bakun plant.
The settlement required the payment by LHC of only $14 million to TPI as a partial return of the security posted by TPI.
This, together with LHC’s reversal of the contingent liability provision, will result in a net income to LHC of approximately $7.5 million.
In May 2008, wholly owned subsidiary Hedcor Sibulan obtained a P3.5 billion loan facility from a consortium of local banks.
Once availed, said loan will partially finance the construction of the 42.5-MW Sibulan hydropower project in Sta. Cruz, Davao del Sur, which broke ground last September 2007.
The Sibulan hydropower project involves the construction of two cascading hydropower generating facilities tapping the Sibulan and Baroring rivers in Sibulan, Sta. Cruz, Davao del Sur. (PR)
