Wednesday, May 8, 2019

Aboitiz Power income drops 9% to P3.6 B in Q1


Published May 3, 2019, 10:00 PM By Myrna M. Velasco

Costs relating to purchase of ‘replacement power’ in the spot market had pulled down by 9.0-percent the consolidated net income of Aboitiz Power Corporation in the first quarter to P3.6 billion from a heftier P4.0 billion in the same period last year.
The lower profitability was logged amid the reduction in the company’s one-off losses at P440 million compared to the higher P1.2 billion booked in the same period last year.
Aboitiz Power has emphasized that “spot market prices were exceptionally high during the first three months of 2019, and the company purchased replacement power due to outages and over-contracting in preparation for Therma Visayas Inc. coming on-line.”
The Aboitiz firm is referring to its 340MW newly-commissioned coal-fired power plant in Toledo, Cebu that has already been contributing to the shared power supply of interconnected Luzon and Visayas grids.
On the basis of consolidated earnings before interest, tax, depreciation and amortization (EBITDA), the company posted 13-percent lower to P10.4 billion from the year-ago level of P11.9 billion.
On its one-off losses, Aboitiz Power indicated that without such, core net income for the period should have been at P4.1 billion – but that is still 21-percent lower partly also due to the procurement of replacement power.
As emphasized by Aboitiz Power Chief Operating Officer Emmanuel V. Rubio “it has been a challenging first quarter,” in reference to the tight supply conditions straining Luzon grid and has been putting anew the generation companies in the public lens as the villains of the rotating brownouts.
Rubio, nevertheless, emphasized that “despite this, our customers remain our top priority and we ensured delivery of replacement power from the spot market.”
Combining its power generation business and the growing core of its retail electricity market, Aboitiz Power noted that its EBITDA had been at P8.6 billion within January to March this year – that was still down by 15-percent to P10.1 billion vis-à-vis last year’s figure.

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