Monday, March 13, 2017

AboitizPower earned P20-billion net income in 2016, 14% of AEV’s



By Lenie Lectura -

ABOITIZ Power Corp. (AboitizPower) posted P20 billion in net income last year, up 14 percent from the previous year, mainly on account of its strong power-generation business.
“The positive result, which is attributed to the strong performance of its power-generation business, translated to earnings per share of P2.72,” said the company in a statement on Wednesday.
Meanwhile, its mother company, Aboitiz Equity Ventures (AEV), reported its net income jumped by 27 percent to P22.5 billion last year, buoyed by the strong performance of its power business.
In a filing with the stock exchange, AEV said the power segment accounted for 65 percent, followed by the banking and financial services, food, infrastructure and land strategic business units (SBUs) with income contributions of 21 percent, 7 percent, 7 percent and 1 percent, respectively. Core profit, meanwhile, reached P22.8 billion, 25 percent more than last year.
“Through our value-creation efforts, we are poised to take advantage of the tailwind our growing economy brings. The gains we recorded over 2016 affirm the soundness of our business strategy of creating a diversified income stream,” said Erramon I. Aboitiz, AEV president and CEO.
AboitizPower’s income contribution to AEV increased by 14 percent, from P13.5 billion to P15.4 billion. On a stand-alone basis, Aboitiz Power’s income stood at P20 billion in 2016.
The power firm’s generation business accounted for 82 percent of earnings contributions, having recorded an income share of P16.3 billion for 2016, up 17 percent from a year ago. The growth was largely driven by Therma South’s new contribution.
Meanwhile, the power-distribution group’s earnings share for 2016 decreased by 4 percent, from P3.8 billion to P3.7 billion.
Union Bank of the Philippines’s (UnionBank) income contribution to AEV increased by 92 percent to P4.9 billion.
AEV’s food business, meanwhile, posted a 1-percent increase in total earnings and income contribution at P1.7 billion last year.
The infrastructure segment of AEV, meanwhile, contributed a hefty 700-percent increase, from P194 million to P1.6 billion.
AEV’s land subsidiary, Aboitiz Land Inc.’s total earnings and income contribution to AEV decreased by 65 percent, from P536 million to P188 million, last year, mainly due to lower revenues.
The power firm registered a net nonrecurring loss of P612 million, mainly coming from foreign-exchange (forex) losses from the revaluation of dollar-denominated liabilities, refinancing costs and goodwill impairment. Adjusting for these one-offs, its core net income rose by 12 percent to P20.6 billion last year, from P18.4 billion in 2015.
AboitizPower is involved in power generation, distribution and retail-electricity services.
Its generation business accounted for 82 percent of the company’s earnings, recording an income share of P16.3 billion last year, up 17 percent year-on-year (YoY).
The growth was largely driven by fresh contribution from Therma South.
“Amid the rising demand for power generated by a growing economy, we will work hard to further strengthen our relationships with our various stakeholders and customers. We are looking forward to add more capacity in the next few years and move closer to our target-generating capacity of 4,000 megawatts [MW] by 2020, to be sourced from a balanced mix of energy sources,” AboitizPower President and COO Antonio Moraza said.
The power-distribution business, which contributed 18 percent of the company’s earnings, reported a 4-percent drop in earnings share to P3.4 billion from P3.8 billion.
Total attributable electricity sales increased by seven percent YOY, to 5,105 gigawatt-hours (GWh) from 4,759 GWh, as energy sales grew across all customer segments.

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