Written by Madelaine Miraflor Reporter Published on 07 August 2012
Publicly listed Aboitiz Equity Ventures Inc. (AEV) concluded the first half of 2012 with a consolidated net income of P11.8 billion, which was largely driven by the company’s power business which ended the semester with an income contribution of P9.4 billion.
“AEV’s power business continued to account for the lion’s share, at 79 percent, of the company’s income contributions from its strategic business units, followed by the banking and food units with income contributions of 17 percent and 4 percent, respectively,” AEV said in a statement.
For the period ending June 30, 2012, AEV incurred a non-recurring gain of P725 million versus last year’s P109 million, which resulted from the revaluation of consolidated dollar-denominated liabilities and placements.
For the second quarter alone, AEV had a consolidated net income of close to P6 billion, recording a 6-percent increase year-on-year.
Aboitiz Power Corp. (AboitizPower), on the other hand, earned an income of P9.4 billion during the first semester, vis-a-vis last year’s P8.1 billion.
According to AEV, higher average selling prices and increased net generation resulted to a 12 percent year-on-year hike in the earnings contribution of the power generation business for the period in review, from P7.8 billion to P8.7 billion.
Also, AboitizPower’s average price for its power increased by 7 percent year-on-year during the first half of 2012, which was on the back of a 42-percent surge in average selling prices at the Luzon Grid’s Wholesale Electricity Spot Market.
“The power supply in Luzon was curtailed given the higher outage levels during the period in review. Meanwhile, the Luzon Grid recorded a 5 percent year-on-year expansion in its recorded peak demand, with the hotter climate as one of the factors pushing up demand level to almost 7,800 megawatts [MW],” said AEV.
Meanwhile, the completed rehabilitation of the Ambuklao (all three units) and Binga (one of 4 units) hydroplants, coupled with the commercial operation of the 4-MW Irisan Greenfield hydro plant resulted to a marginal increase in AboitizPower’s attributable capacity to 2,350 MW as of end-June 2012.
“AboitizPower continues to be interested in bidding for the remaining power generation assets that PSALM [Power Sector Assets and Liabilities Management Corp.] will bid out. With more than 70 percent of NPC’s [National Power Corp.] generation assets in Luzon and Visayas in private hands, we are very comfortable with the competitive landscape that exists in the industry,” said Erramon Aboitiz, AEV president and chief executive officer.
He added that, “With the robust growth in power consumption that we are experiencing, we, however, see our future growth coming from the greenfield and brownfield projects we are developing to augment the power requirements of our economy.”
AEV is the publicly listed holding and investment company of the Aboitiz Group with major investments in power, banking and food. source
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