Business World Online
Posted on July 29, 2011 06:47:31 PM
ABOITIZ EQUITY Ventures, Inc. reported a 9% drop in first semester profits to P10.2 billion on Friday, pointing to its power subsidiary for the weaker performance.
Its power unit Aboitiz Power Corp. accounted for 80% of its income, followed by Union Bank of the Philippines with 14% and Pilmico Foods Corp. with 6%.
Aboitiz Power’s consolidated net income fell 17% to P10.6 billion in the first half from P12.7 billion. Its core net income fell 23% to P9.9 billion.
"This decline is attributed to lower prevailing prices at the Wholesale Electricity Spot Market (WESM) compared to 2010 prices. The average price of electricity in the WESM dropped by 55% for the period, due largely to demand and supply conditions, specifically, low demand for electricity in Luzon…consequently resulting in a year on year decline in the power generation group’s average selling price," Aboitiz Equity said in a statement.
Power generation in the first semester also declined 7% to 4,640 gigawatt hours (GWh) from 4,984 GWh recorded in the same period last year.
"Favorable developments with respect to our greenfield hydro projects, the recent rebirth of the Ambuklao Hydro, as well as the significant strides made by the Subic and Davao clean-coal greenfield plants are demonstrating that Aboitiz Power’s project development pipeline is full and will provide earnings growth over the next few years," the statement read further.
Shares of Aboitiz Equity Ventures closed at P41.90, up 0.24% from its previous close of P41.80 a piece.
Shares of Aboitiz Power closed at P32.50, 0.31% from its previous close of P32.60 a piece. -- Emilia Narni J. David
Aboitiz Power’s consolidated net income fell 17% to P10.6 billion in the first half from P12.7 billion. Its core net income fell 23% to P9.9 billion.
"This decline is attributed to lower prevailing prices at the Wholesale Electricity Spot Market (WESM) compared to 2010 prices. The average price of electricity in the WESM dropped by 55% for the period, due largely to demand and supply conditions, specifically, low demand for electricity in Luzon…consequently resulting in a year on year decline in the power generation group’s average selling price," Aboitiz Equity said in a statement.
Power generation in the first semester also declined 7% to 4,640 gigawatt hours (GWh) from 4,984 GWh recorded in the same period last year.
"Favorable developments with respect to our greenfield hydro projects, the recent rebirth of the Ambuklao Hydro, as well as the significant strides made by the Subic and Davao clean-coal greenfield plants are demonstrating that Aboitiz Power’s project development pipeline is full and will provide earnings growth over the next few years," the statement read further.
Shares of Aboitiz Equity Ventures closed at P41.90, up 0.24% from its previous close of P41.80 a piece.
Shares of Aboitiz Power closed at P32.50, 0.31% from its previous close of P32.60 a piece. -- Emilia Narni J. David
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