Aboitiz Power's profits nearly double after energy sales rise

Aboitiz Power Corp. (APC) said increased energy sales almost doubled earnings after a subsidiary acquired a geothermal complex in May this year. Profits reached P2.2 billion from July to September this year, 99 percent higher than the same period last year, said APC, the Aboitiz Group’s power holding company. Of its total net profit, P1.9 billion came from its power generation business, 189 percent more than its net income contribution during the same period last year, the company said. Moreover, power generation was 78 percent – or nearly P3 billion – of the company’s bottomline from January to September this year, APC said. For the nine-month period this year, APC said earnings rose to P3.8 billion, 20 percent higher than P3.2 billion posted during the same period last year. Earnings from its generation business was “shored up" by AP Renewables Inc. (APRI), a subsidiary that owns and runs the Tiwi-Makban geothermal plants, APC said in a disclosure to the Philippine Stock Exchange (PSE). Total power sold from July to September this year was 183 percent higher year on year from 494 gigawatthours (GwH) to 1,396 GwH, the company said. “[E]xpansion mainly came from the operation of the Tiwi-Makban geothermal power plants, which were turned over the APRI in May 2009," APC said in a disclosure. “Moreover, higher rainfall for the quarter resulted to a 38 percent year on year increase in APC’s attributable energy sales from its hydro assets." In the meantime, APC’s power distribution business also rose, spurred by the increase of the number of residential and non-residential customers it served. Both categories posted an eight and seven percent climb respectively, during the third quarter. Gross margins on APC’s distribution income were also helped by a rate increase imposed by Cotabato Light and Power Co. Inc. (CLPCI) in May. A similar rate hike was also implemented by APC subsidiary Subic Enerzone Corp., the company said. “All told, the power distribution business contributed P477 million in the third quarter of 2009, recording a 34 percent year on year increase," the company said. For the January to September period, total electricity sales climbed six percent to 2,460 GwH. Even with increased volumes, income contribution of its power distribution business stayed flat at P1.1 billion, APC said. “The strong gain in the third quarter was offset by the impact of the under recovery of cost of purchased power by AP’s distribution utilities in March 2009, which resulted from the increase in the National Power Corporation’s grid rates," the company said. Shares of APC rose 20 centavos to P7.70 during Tuesday's trading at the Philippine Stock Exchange (PSE). - RJAB Jr., GMANews.TV