AboitizPower earns P9.1B in H1 of 2018

ON a year-to-date (YTD) basis, Aboitiz Power Corporation’s (AboitizPower’s) net income for the first half of 2018 was P9.1 billion, 6% lower than the P9.7 billion recorded last year. The company recognized nonrecurring losses of P1.4 billion, versus last year’s losses of P744 million, coming from net foreign exchange losses.

Without these one-off losses, the company’s core net income was flat year-onyear (YoY) at P10.5 billion. AboitizPower recorded consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) of P24 billion for the first half of 2018, a 10% increase from the P21.8 billion recorded last year.

“We continue to grow the business with the capacity additions and the expanding distribution business,” said Antonio R. Moraza, AboitizPower President and Chief Executive Officer.

“Energy sales are up; however, margins are getting tighter due to competition. This is a reality that we have prepared for-- and our organization is equipped to compete,” Moraza added.

Consolidated EBITDA of the company’s generation and retail supply business for the first half of 2018 was P20.2 billion, up 9% from the P18.5 billion recorded during the same period last year. This was due to the fresh EBITDA contributions from Pagbilao Energy Corporation (PEC). Higher contracting levels versus last year also contributed to the higher EBITDA. These upsides were partially offset by the lower contributions coming from the company’s hydro plants due to lower hydrology during the first six months of 2018.

After taking into account interest, depreciation and taxes, core net income at the end of the first half of 2018 was P9.4 billion, 2% lower than last year. Due to foreign exchange losses, the first half’s non-recurring losses totaled P857 million, versus last year’s non-recurring loss of P284 million. This brought the generation and retail electricity supply net income contribution to P8.5 billion, which was 8% lower YoY.

AboitizPower’s capacity sold for the period increased 8% YoY, from 3,086 megawatts (MW) to 3,319 MW, driven by new capacities sold from PEC.

For the first half of 2018, consolidated EBITDA of the distribution business was P3.9 billion, up by 13% from the P3.4 billion recorded last year. The group saw a 7% YoY increase in energy sold, from 2,546 gigawatthours (GWh) to 2,719 GWh, due to increased consumption across all customer segments. Improving margins also contributed to the increase in consolidated EBITDA during the period in review. As a result, net income contribution of the distribution business increased by 14% YoY, from P1.8 billion to P2.1 billion.