Aboitiz Power Q1 profit jumps 10% to P5.6B
MANILA, Philippines - Higher electricity sales boosted earnings of Aboitiz Power Corp. by 10% in the first quarter of the year.
Aboitiz Power said its net income in January to March rose 10% from last year to P5.6 billion.
Stripping off extraordinary gains, the company's net income went up 9% year-on-year to P5.1 billion.
"Our revenue growth for the first quarter was propelled by a higher demand for energy, something we foresee continuing with higher levels of economic activity," said company president and CEO Erramon Aboitiz.
Aboitiz Power's generation business turned in P5.1 billion to total income during the first quarter, up 3% from last year, owing to higher average selling prices and improved power output.
It said it enjoyed a 34% increase in the average electricity price at the Wholesale Electricity Sport Market due to strong demand, with the Luzon grid's recorded peak surging 5%.
The distribution business, on the other hand, contributed P733 million to total income, up 61%, on improved charges and electricity sales growth of 8%. The growth was mainly attributed to higher consumption of industries.
"Aboitiz Power is anticipating increased demand for electricity by building the right mix of energy sources in its generating portfolio to be able to deliver better power solutions to customers at reasonable and competitive prices," noted Aboitiz.
He said the company plans to participate in the development of various greenfield projects -- both hydro and clean coal -- in the country in the next 3 to 5 years.
In Mindanao, Aboitiz Power has committed to invest P35 billion to add 354 megawatts of new capacity to ease the power shortage in the region.
"We will also rehabilitate existing plants to maximize capacity and improve reliability. We estimate the combined cost for new projects and rehabilitation to reach P170 billion," said Aboitiz.
As of the first quarter, Aboitiz Power's attributable capacity was 2,350 MW.
The company owns the 70-MW Bakun hydro run-of-river plant, the 242-MW Navotas power barges, the Ambuklao and Binga hydropower facilities, and the 4-MW Irisan hydropower greenfield project. - Rappler.com