Aboitiz Power Corporation Reports H1 Results, Net Income P17.1 Billion, EBITDA Grew by 8% YOY to P36.3 Billion

Aboitiz Power Corporation’s (AboitizPower) beneficial EBITDA grew by 8% year-on-year to P36.3 billion for the first half of 2024, driven by higher generation portfolio margins. This also resulted in growth in beneficial EBITDA for the second quarter of 2024 at P19.9 billion, 6% higher than the P18.7 billion beneficial EBITDA in the same period in 2023.

The Company’s net income for the first half of 2024 was P17.1 billion. Due to the recognition of depreciation and interest for GNPower Dinginin Ltd. Co.’s (GNPD) Unit 1 and Unit 2, the Company’s net income for the first half of 2024 was 4% lower than its net income of P17.8 billion for the corresponding period in 2023. Excluding forex and derivative gains, the core net income for the first half of 2024 would be P17.1 billion, compared to P17.8 billion in the same period last year.

“Our financial performance in the first half of 2024 is a testament to our strategic focus on operational efficiency and adaptability to market conditions,” AboitizPower President and Chief Executive Officer Danel C. Aboitiz said.

“The growth in EBITDA, fueled by improved margins and strategic business expansion, positions us for continued success in support of the country’s economic growth and prosperity.”

Results of Operations

Generation and Retail Electricity Supply

AboitizPower’s generation and retail supply business beneficial EBITDA in the first half of 2024 was P33.0 billion, 10% higher than the P30.0 billion in the same period in 2023. This was driven by higher portfolio margins and energization of the Company’s Cayanga and Laoag solar plants. Energy sold for the first half of 2024 was at 17,758 gigawatt-hours (GWh).

Distribution

During the first half of 2024, AboitizPower’s distribution business beneficial EBITDA was P4.2 billion. This is 16% lower than the P5.0 billion in the same period in 2023, which was mainly the result of the favorable timing of pass through charges due to the steep decline in fuel prices in that year. Nevertheless, energy sales increased by 9% to 3,256 GWh in the first half of 2024, compared to 2,983 GWh in the same period in 2023 due to the higher demand driven by the effect of the El Niño phenomenon. Energy sales from Residential, Commercial and Industrial customers increased by 17% and 6% year-on-year, respectively.
 
Financial Condition

As of June 30, 2024, AboitizPower’s total consolidated assets stood at P503.4 billion, which is 3% higher compared to year-end 2023 of P487.0 billion. Total cash and cash equivalents was P52.5 billion, while total consolidated interest bearing liabilities was P247.4 billion. Equity attributable to holders of the parent was P185.7 billion. As of June 30, 2024, the Company’s current ratio was 1.7x versus year-end 2023’s 1.8x, while its net-debt-to-equity ratio was at 1.0x, versus year-end 2023’s 0.9x.