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Aboitiz Power income falls 43% to ₱2.1 B in Q1

By Myrna M. Velasco

The financial pinch came on a bit strong for publicly listed Aboitiz Power Corporation as its consolidated net income in the first quarter nosedived by 43 percent to ₱2.1 billion compared to last year’s ₱3.6 billion in the same initial three months.

The company said it logged non-recurring losses of ₱27 million, which by far was considerably down from ₱440 million it posted in parallel period in 2019.

Without the one-off losses, Aboitiz Power said its core net income within the January-March stretch was at ₱2.1 billion, still on a decline of 49 percent from the year-ago level of ₱4.1 billion.

It explained the downtrend in profitability had been mainly attributed to leaner earnings before interest, taxes, depreciation and amortization (EBITDA), coupled with the additional taxes it needed to shell out because of the expiration of income tax holidays (ITH) of its Therma South and GN Power Mariveles power ventures.

The weaker financial turnout had also been compounded by “additional interest expense from the parent bond and loan that were taken up last year.”

The power generation segment of the company, it was noted, posted EBITDA of ₱7.4 billion, which was down by 13- percent from ₱8.6 billion in the same period in 2019.

Aboitiz Power said its operations had been unfavorably impacted on by outages in some of its generating facilities – primarily its Therma South plant in Davao and GNPower Mariveles plant in Bataan; then that was aggravated by lower selling prices.

Such incidents, it emphasized, “offset the fresh contributions of Therma Visayas, Inc. (its new power plant in Cebu) and the decreased purchased power costs.”

Conversely, the aggregate capacity sold during the quarter had been on 17 percent upswing to 3,445 megawatts from 2,947MW vis-à-vis the same period last year.

On the power distribution segment of the company’s busi¬ness, EBITDA climbed by 12 percent to ₱2.1 billion compared to ₱1.9 billion a year ago.


Source: Manila Bulletin (https://business.mb.com.ph/2020/05/01/aboitiz-power-income-falls-43-to-%e2%82%b12-1-b-in-q1/)

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