MANILA, March 11 (PNA) — Aboitiz Power Corporation’s (APC’s) net income went down by 10 percent from Php 18.6 billion in 2013 to Php 16.7 billion in 2014.
“APC reported a percent year-on-year decrease in its consolidated net income from Php 18.6 billion in 2013 to Php 16.7 billion in 2014,” APC said in a disclosure at the Philippine Stock Exchange (PSE) Wednesday.
APC noted its power generation business contributed 81 percent of its total earnings at Php 13.5 billion, while its distribution business brought in 19 percent at Php 3.2 billion. As a result, stockholders will earn Php 2.27 per share.
Its power generation earnings went down by 11 percent at Php 13.5 billion for 2014 due to the water level decrease of the Magat Plant, geothermal resource supply contract of Tiwi-Makban Power Plant and the expired tax holiday of the Pagbilao and Magat Power Plants.
Aboitiz also said its 11,272-Gigawatthours (GWhs) was mostly sold through bilateral contracts at 86 percent, while its sales to the Wholesale Electricity Spot Market (WESM) decreased by 19 percent from 1,914-GWh to 1,612-GWh.
Distribution earnings for APC remained flat at Php 3.2 billion last year compared to 2013, mainly due to the fall of gross margin for its distribution charge in Davao Light and Cotabato Light from Php 1.77 per kilowatthour (kWh) to 1.71 per kWh. It cited the two subsidiaries had higher expenses to address the power shortage in Mindanao.
However, its electricity sales went up by 10 percent from 4,076-GWh to 4,480-GWh driven by a 15 percent growth from industrial customer sales.
APC’s acquisition of Lima Utilities in 2014 also boost electricity sales.
Meanwhile, Aboitiz said it targets to increase its capacity from 2,210-MW to 2,524-MW this year, from the commissioning of its 14-MW Sabangan hydro plant and the 260 MW-Davao Coal plant for the first half of 2015.
It added the 40-MW contracting capacity from the Unified Leyte Plant was also included in the 2015 capacity target.
APC also said it targets to increase its capacity by another 2,000-MWs in the next five years, with an allocation of Php 52 billion for this year’s capital expenditures.
It noted the 2,000-MW projects as the 420-MW Pagbilao, 340-MW Therma Visayas Inc, 470-MW Therma South Plant, 68-MW Manolo Fortich in Bukidnon, 600-MW Subic baseload plant, a 200-MW solar project with Sunedison and another 200-MW potential from run-of-river hydro projects.
Aboitiz Power Corporation is engaged with power generation and distribution in the country, operating 21 power plants in the country, mainly in Luzon and Mindanao. (PNA)