ABOITIZPOWER Corp.’S consolidated net income was up 696 percent year-on-year (YoY) increase, from P1.6 billion to P12.7 bn for the first half of 2010.
This translates to earnings per share of P1.73.
Foreign exchange losses that resulted from the revaluation of consolidated dollar-denominated loans and placements resulted to a non-recurring loss of P156 million.
Adjusting for this one-off, the company recorded a 590 percent YoY growth in its core net income, from P1.9 billion to P12.9 billion.
“Our profit growth this year has come from the acquisitions in 2009. We are seeing very healthy growth in demand from power, which will lead us to our second phase of our expansion—and that is building new capacity to meet this increased demand for power. We remain very bullish in the Philippine economy in general and the power sector in particular,” said AboitizPower chief executive officer Erramon Aboitiz.
On a YTD basis, the generation business accounted for 96 percent of earnings contributions from AboitizPower’s business segments, recording an income share of P12.8 billion for the first semester of 2010, up 1121 percent YoY.
Netting out one-off items, AboitizPower’s generation business shored in close to P13 billion for the period, 875 percent higher than last year. This was on the back of a 356 percent YoY increase in total attributable power sales, from 1,093 GWh to 4,984 GWh.
As of end June 2010, AboitizPower’s attributable capacity was at 2,014 megawatts (MW), posting a 93 percent YoY increase.
The expansion was due to the assumption of the dispatch control over the 700-MW contracted capacity of the Pagbilao coal-fired power plant in October 2009, the takeover of the two 100-MW power barges in the first quarter of this year and the start of operations of the 26-MW unit of Sibulan hydro power plant in March 2010 and the two 82-MW units of the 26%-owned Cebu coal-fired power plant in February and May 2010.
On a YTD basis, total attributable electricity sales increased by nine percent, from 1,603 GWh to 1,753 GWh. Leading the pack was the industrial segment recording a 12 percent YoY growth, while residential and commercial accounts registered six percent and five percent YoY expansions.
The group’s customer base still expanded YoY with the residential, commercial and industrial segments growing by five, three and four percent.
However, income contribution for the first semester recorded an 8% YoY decline, from P637 million to P587 million. Additional operating expenses brought about by the operation of the back-up power plant and the higher costs absorbed due to the
reduction in systems loss weighed down the impact of the strong topline performance of the distribution group for the period in review. Davao Light & Power Company was forced to run its back-up power plant to provide the much-needed power to the Mindanao Grid.
As of June 30, 2010, the company’s total consolidated assets amounted to P122 billion, 10 percent higher than year-end 2009 level of P111 billion.
The company’s consolidated Cash and Cash Equivalents was at P6.2 billion, while total consolidated interest-bearing loans was at P65 billion. Equity Attributable to Equity Holders of the Parent increased by 30 percent to P45 billion from yearend 2009.
Current ratio as of semester-end was at 1.2x (versus year-end 2009’s 0.7x), while net debt-to-equity ratio was at 1.3x (versus year-end 2009’s 1.8x). (PR)