Aboitiz power unit income declines by 4% in January-June

By Lenie Lectura – July 24, 2024
from Business Mirror

Aboitiz Power Corp. recorded a net income of P17.1 billion in the first half, 4 percent lower than the P17.8 billion posted in the same period last year.

The power firm cited depreciation and interest for GNPower Dinginin Ltd. Co.’s (GNPD) Unit 1 and 2 as the main reason for the lower earnings during the period.

“Our financial performance in the first half of 2024 is a testament to our strategic focus on operational efficiency and adaptability to market conditions,” AboitizPower President and CEO Danel Aboitiz said in a statement.

The power firm did not report how much it made in the second quarter. It earlier reported a net income of P7.9 billion and P7.8 billion in core income in the first quarter, an improvement from the previous year’s numbers due to higher generation portfolio margins.

The company’s EBITDA grew by 8 percent in the first half. This was fueled by improved margins and strategic business expansion, the company said.

The generation and retail supply business beneficial EBITDA of AboitizPower stood at P33 billion at end-June this year, 10 percent higher than in the same period last year. Energy sold during the period reached 17,768 gigawatt-hours (GWh).

The distribution business beneficial EBITDA, meanwhile, reached P4.2 billion, 16 -percent lower than the P5 billion posted in the same period last year. The company attributed this to the “favorable timing of pass-through charges” following the steep decline in fuel prices in 2023. Nonetheless, energy sales went up by 9 percent to 3,256GWh at end-June this year.

The company has set aside a capital expenditure (capex) budget of P73 billion, more than double the P26 billion in 2023. Of the amount, 72 percent is earmarked for its renewable energy (RE) pipeline.

AboitizPower is determined to add 3,700 megawatts (MW) of new RE capacity to achieve of goal having 4,600MW by 2030.

Image credits: www.aboitizpower.com