AboitizPower Sees Significant Profit Surge Driven by High Energy Prices

MANILA, Philippines — Aboitiz Power Corp. has reported a significant surge in its net income for the first half of 2023, reaching P18.4 billion, a 45 percent jump from the P12.7 billion recorded in the same period last year. This substantial earnings growth was primarily driven by higher electricity prices and the increased capacity from newly operational hydro and solar power plants. The company's core net income mirrored this trend, climbing by 41 percent to P18 billion from P12.8 billion a year prior. In the second quarter alone, AboitizPower posted a net income of P10.5 billion, marking a 31 percent increase from P8.1 billion in the previous year and a 33 percent rise from P7.9 billion earned in the preceding quarter. The growth is attributed to improved margins in the generation segment, fueled by elevated energy prices and the commencement of operations at new utility-scale solar farms. Furthermore, the acquisition of the 797-megawatt Caliraya-Botocan-Kalayaan hydroelectric complex in Laguna has significantly bolstered its generation capacity. Additional contributions came from the full six-month operation of Chromite Gas Holdings Inc. (CGHI), its joint venture with Meralco PowerGen Corp. CGHI, which last year entered into a $3.3 billion power venture with San Miguel Global Power to establish the country’s first and largest integrated liquefied natural gas (LNG) facility, played a key role in boosting earnings during the period. Throughout the first half of the year, AboitizPower saw increased energy sales across its core businesses. The generation and retail electricity segment recorded a 17 percent rise in energy sales, reaching 22,764 gigawatt-hours (GWh) from 19,440 GWh. The distribution business also experienced a modest uptick, with power sales inching up by six percent year-on-year to 3,606 GWh from 3,386 GWh. According to the latest data from the Energy Regulatory Commission (ERC), AboitizPower maintains its leading position in the power generation sector, accounting for 23.86 percent of the national market share. Its dominance is evident across Luzon, Visayas, and Mindanao, where it holds the highest market shares at 27.53 percent, 16.99 percent, and 14.85 percent, respectively. Source: Philstar Business