AboitizPower sets P62-B capex for 2018

Aboitiz Power Corp. has earmarked P62 billion for capital expenditures this year as it sees the commissioning of more than 500 megawatts of generating capacity in coal-fired and hydro power assets.

In a briefing, AboitizPower president and chief operating officer Antonio R. Moraza said this was the bulk of the P77-billion capex that parent firm Aboitiz Equity Ventures (AEV) had set for 2018.

Moraza said more than half of the P62 billion was set aside for subsidiary Therma Power’s super-critical coal fired power plant in Dinginin, Bataan.

GNPower Dinginin Ltd. Co., a joint venture with the Ayala group’s AC Energy as well as the Greece-based Power Partner group, is building a 668-megawatt generator in Bataan.

“With over 500 MW incoming capacity this year — from the Pagbilao Unit 3 facility which came online early this year, to the Manolo Fortich hydropower (in Bukidnon) and Therma Visayas baseload plants coming online later this year, AboitizPower is on track to hit its goal of 4,000 MW in sellable capacity by 2020,” Moraza said.

Overall, the Aboitiz group — through AEV and including Pilmico Foods Corp., Aboitiz InfraCapital Inc., and AboitizLand Inc. — expects growth and expansion to continue this year.

“Our outlook remains positive as we remain committed to grow and expand our businesses while keeping within our financial and risk parameters,” AEV president and chief executive Erramon I. Aboitiz said.

In 2017, AEV reported a net income after tax of P29.3 billion, an increase of 2 percent from P28. billion previously.

In the first quarter of 2018, AEV saw a 3-percent year-on-year rise in consolidated net income which reached P4.8 billion from P4.7 billion.

In the first three months of this year, AboitizPower contributed close to two-thirds or 64 percent of total income.

However, Aboitiz Power net income contribution to AEV decreased by 9 percent to P3.1 billion due to higher unrealized foreign exchange losses.