Aboitiz Power Corp. expects to see improved performance in the second half of the year, driven by new supply deals and stronger plant operations.

During the Philippine Stock Exchange’s (PSE) PSE STAR Investor Day, AboitizPower Chief Finance Officer (CFO) Sandro Aboitiz explained that the company is preparing for new contracts that will start contributing to its financial performance from July to December.

“The new contracts coming in should deliver higher margins in the spot [market],” he said. “So it’s 800 megawatts (MW) worth of new contracts that will start delivery.”

According to the CFO, one of the contracts is expected to begin generating revenue by the end of the third quarter, which in turn would deliver higher margins.

“We continue to keep the reliability of our plants, it’s a high priority, and are optimistic that we can bring up plant availability,” he said.

Aboitiz noted that during the first six months of 2025, the company’s investment in Excellent Energy Resources, Inc. (EERI) had not yet reached commercial operation. However, the company expects that in the coming months, the three gas units under EERI will come online and begin to have a financial impact.

To recall, AboitizPower, through its subsidiary Therma NatGas Power, Inc. (TNGP), entered into a joint investment with Meralco PowerGen Corp. (MGen) to acquire a 60-40 share of Chromite Gas Holdings, Inc. (CGHI). This acquisition gave them a combined stake in EERI.

“All three units of EERI, which is the gas expansion project in Chromite, are now in full operation,” the executive explained. “That was not the case in the first half as those units gradually ramped up into their CODs (commercial operations date). So we’ll feel the full effect of those three units in the second half of the year.”

AboitizPower also expects improved financial results in the second half, following the final approval of several Ancillary Services Procurement Agreements (ASPAs) in July.

“If you recall, we won a host of ASPA contracts in NGCP CSP in 2023,” he said, citing the competitive selection process of the National Grid Corporation of the Philippines (NGCP). “And when we received preliminary approval for those ASPAs, we were serving them at capped rates.”

At the time, the company was serving these ASPAs at capped rates, pending final approval.

“We have received final approval on the bulk of those contracts, just recently, actually in July. The big ones there are SNAP (SN Aboitiz Power) and TLI (Therma Luzon, Inc.),” he said.

“We’re now able to serve those contracts at the applied rate, which is higher than the capped rate that was issued during the provisional approval, and we’re also hopeful that we will be able to retroactively recover the difference in the rates from the time we started delivering those contracts.”

During the first half of the year, the company reported a net income of ₱12.7 billion, driven by the full impact of depreciation and interest expenses for GNPower Dinginin, Ltd. Co.