MANILA, Philippines—Aboitiz Power Corp. posted an 18-percent decline in its consolidated net income to P4.6 billion in the first quarter this year due largely to a drop in electricity prices and to a lower volume of electricity sold.
The company’s core net income in the first three months similarly fell by 11 percent to P4.5 billion compared with a year ago, APC reported in a press statement issued Friday.
“Aboitiz Power remains very bullish on continued strong economic growth in the Philippines in 2013 and beyond. With this will come rising energy demand. We believe APC’s growth plans of building additional generating capacity nationwide dovetails quite nicely with this requirement for available, reliable and competitive power,” noted APC president and CEO Erramon I. Aboitiz.
According to APC, its power generation business recorded a 22-percent drop in earnings contribution to P4 billion in the first quarter from P5.1 billion in the same period last year, due mainly to the drop in ancillary sales to the National Grid Corp. of the Philippines.
Lower water levels at the company’s impounding dams have also limited its ability to sell energy at the wholesale electricity spot market. When adjusted for non-recurring items, the group registered a 15 percent decrease in the core net income of its power generation business to P3.9 billion.
APC also reported that the group’s average price for its electricity fell by 11 percent year-on-year. The average selling price at the WESM dropped by 6 percent, and for bilateral contracts, 10 percent.
The company’s net generation also remained flat at 2,450 gigawatt-hours in the first three months of the year.
While power sales through bilateral contracts decreased by 11 percent to 1,948 gWh, spot market sales improved by 96 percent to 502 gWh from 256 gWh a year ago.