Warmer weather boosts AboitizPower's Jan-June profits by 15%
MANILA, Philippines - Aboitiz Power Corp. announced a 15% net income increase in the first 6 months of the year to P12.2 billion from P10.6 billion, as warmer weather led to an increase in demand for power.
In a statement on Monday, August 6, the Aboitiz-led power firm said the generation business contributed 89% of earnings or P11.3 billion. These earnings jumped 11% year on year.
Aboitiz saw a 14% expansion in power sales through bilateral contracts. On a capacity bases, AboitizPower increased attributable sales 13% to 1,532 MW from 1,351 MW.
At the same time, power costs increased. Aboitiz's average power cost increased 7% during the first half of 2012.
On top of that price hike, the average selling prices at the Luzon Grid's Wholesale Electricity Spot Market (WESM) shot up 42%. There were above average selling prices in the Luzon Grid's WESM through the second quarter as supply conditions remained tight and demand stayed strong.
The company was able to achieve a marginal increase of 2,350 MW in attributable capacity from the rehabilitation of the Ambuklao (all 3 units) and Binga (one of 4 units) hydropower plants, coupled with the commercial operation of the 4-MW Irisan Greenfield hydropower plant as of the end of June 2012.
Power distribution contributed P1.4 billion to earnings, a 38% increase from the same period last year.
Total attributable electricity sales increased 7% led by higher demand from the industrial sector. Industries recorded a 9% year on year expansion in sales volume, while the residential sector rose 6% and commerical accounts increased 4% year on year.
The company also realized a one-off cost for P297 million during the second quarter from a reimbursement to a steam supplier for operating expenses related to power consumption from May 2009 to May 2012 as well as a P59 million debt prepayment cost.
“Across our distribution utilities, our focus remains anchored on two principles: firstly, to improve customer service and at the same time lower costs by improving efficiencies and productivity; and secondly, to keep our networks updated at all times and ready to handle growth in the franchises we serve,” said AboitizPower president and CEO Erramon Aboitiz. - Rappler.com