MANILA -- AboitizPower's 2017 net income posted a slim two-percent rise to PHP20.4 billion, from PHP20 billion in 2016, the company reported Friday afternoon.
AboitizPower is the Aboitiz Group's holding company in power generation, distribution, and retail electricity services. It also owns distribution utilities that operate in high-growth areas in Luzon, Visayas, and Mindanao.
"Our bottom line was affected by our decision to cease operations of Aseagas," AboitizPower president Antonio Moraza said in a statement.
According to the company, it had non-recurring losses of PHP2.9 billion in 2017, compared with PHP611 million non-recurring losses in 2016, due to asset impairment costs related to Aseagas Corporation, and debt payment costs on GN Power-Mariveles Coal Plant Ltd. Co loan.
Despite this non-recurring losses, Moraza noted AboitizPower still grew in 2017, with the help of the availability and reliability of its plants.
AboitizPower emphasized that without the one-off adjustments, its core net income grew 13 percent in 2017, from PHP20.6 billion to PHP23.3 billion.
Also, its consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) have increased from PHP38.1 billion to PHP47.7 billion, a 25-percent year-on-year (YoY) increase, which the company attributed to the contribution of GMCP to the coal group, as well as higher water inflows in the hydro group.
AboitizPower's power generation business accounted for 83 percent of the EBITDA contributions.
The company shared that the capacity sold in 2017 has increased by 41 percent YoY, from 2,223 MW to 3,124 MW. This increase was due to the additional capacities from GNPower-Mariveles, higher generation of its hydro units, and more capacities contracted, according to the company.
With regard to power distribution, Moraza said the company would continue developing technologies that would enable it to deliver energy. "We will pursue renewable energy (RE), as it is our intention to participate in the RE market," he said.
He also cited that the company would continue to expand both in the RE and non-RE sources.
AboitizPower's gross margin on a per kilowatt-hour basis increased to PHP1.73 in 2017, from PHP1.59 in 2016.
AboitizPower remarked that improved margins were due to the adequate power supply, better supply mix, and recoveries on purchased power costs. (PNA)
