ABOITIZPOWER Corporation’s (AboitizPower) consolidated net income was up by 696 percent in the first half of 2010 year-on-year, from P1.6 billion to P12.7 billion.

The increase translates to an earning 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.

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Adjusting for this one-off, the company recorded a 590 percent year-on-year growth in its core net income, from P1.9 billion to P12.9 billion.

"Our profit growth this year came 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 and CEO Erramon Aboitiz.

On a year-to-date 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 by 1121 percent year-on-year.

Netting out one-off items, AboitizPower’s generation business shored in close to

P13 billion for the period, which is 875 percent higher than last year. This was

on the back of a 356 percent year-on-year 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 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 percent-owned Cebu coal-fired power plant in February and May 2010.

On a year-to-date 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 growth while residential and commercial accounts registered six percent and five percent expansions, respectively. The group’s customer base still expanded year-on-year with the residential, commercial and industrial segments growing by five percent, three percent and four percent, respectively.

However, income contribution for the first semester recorded an eight percent 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 and 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 year-end 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).

On June 28, 2010, AboitizPower and its partners in Steag State Power Inc., owner of the 232 MW coal plant at the Phividec Industrial Estate in Villanueva, Misamis Oriental, firmed up their collective intention to develop a third unit of approximately 150-MW capacity adjacent to the existing facility.

AboitizPower and its partners agreed to maintain their shareholdings in the same proportions in the new corporation to be established for the planned additional capacity.

Certain essential facilities such as the jetty, coal handling facilities and stockyards and the 138-kV interconnection with the Mindanao Grid are to be shared with the existing facilities.

Depending on the interest the market demonstrates, the agreement contemplates the possibility of another unit. (PR)