Aboitiz Power's net income jumps on solar, retail growth
Aboitiz Power Corp. has reported an increase in net income for the first nine months of the year, driven by improved margins, the addition of new solar plants, and increased retail volume and energy sales.
In a disclosure to the Philippine Stock Exchange, the company announced a net income of P27.3 billion from January to September 2024, up from the previous year.
Aboitiz Power’s earnings before interest, taxes, depreciation, and amortization (EBITDA), meanwhile, grew by 12 percent to P56.1 billion.
This growth was fueled by enhanced margins from the company's power generation portfolio and the operational capacity from the 159 megawatt (MW) Laoag and 94 MW Cayanga Solar Plants.
Additionally, AboitizPower recorded growth in retail volume and energy sales from its distribution utility firms. This resulted in a 19 percent increase in beneficial EBITDA, rising from P16.6 billion in the third quarter of last year to P19.8 billion this year.
According to AboitizPower, net income increased despite costs associated with the depreciation and interest from GNPower Dinginin Ltd. Co’s Units 1 and 2.
“Excluding foreign exchange and derivative gains, the company’s core net income for the first nine months of 2024 was P27.2 billion, compared to P26.7 billion during the same period last year,” the company stated.
In terms of beneficial EBITDA from generation and retail supply, AboitizPower reported an 11 percent increase from P46 billion to P50.9 billion this year, attributed to the energization of the Cayanga and Laoag solar plants.
The firm noted that approximately 26,910 gigawatt-hours (GWh) were sold, reflecting a two percent increase compared to last year.
The distribution business also experienced growth in beneficial EBITDA due to higher energy sales, which surged by 8 percent to 4,939 GWh during the third quarter, resulting in earnings of P6.6 billion.
“This increase was driven by higher demand, influenced by the El Niño phenomenon,” AboitizPower explained. “Energy sales from residential, commercial, and industrial customers rose by 14 percent and 5 percent year-on-year, respectively.”
For the past nine months, AboitizPower's overall consolidated assets amounted to P497.3 billion, slightly higher than last year’s record of P487 billion.
Total cash and cash equivalents stood at P59.2 billion, while total consolidated interest-bearing liabilities were at P240.1 billion.
“Equity attributable to holders of the parent reached P193.7 billion. As of September 30, the company’s current ratio was 1.8x, consistent with last year, while its net debt-to-equity ratio remained at 0.9x, the same as year-end 2023,” the company elaborated.