Aboitiz Power’s core profit down 4% in H1

Aboitiz Power Corp., the flagship business of the Aboitiz Group, saw a 4-percent drop in core net income in the first six months of 2024, blamed on depreciation and interest expenses on two units of its coal-fired power plant GNPower Dinginin.

Excluding nonrecurring items such as foreign exchange and hedging gains, AboitizPower said in a disclosure to the local bourse on Tuesday that its first semester bottom line had reached P17.1 billion, down from a year ago’s P17.8 billion.

Cash flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) climbed 8 percent to P36.3 billion for the January to June period, propelled by higher generation portfolio margins.

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The filing did not include Aboitiz Power’s revenue figures. The firm has yet to disclose its financial statement.

“Our financial performance in the first half of 2024 is a testament to our strategic focus on operational efficiency and adaptability to market conditions,” Aboitiz Power president and CEO Danel 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,” the executive added.

The company reported a 10-percent improvement in cash flow from its generation and retail supply business. Beneficial Ebitda from this segment grew to P33 billion from P30 billion in the same period last year, attributed to the activation of its Cayanga and Laoag solar plants.

Energy sold reached 17,758 gigawatt-hours (GWh). However, cash flow from its distribution business plunged by 16 percent to P4.2 billion from the previous year despite a 9-percent growth in energy sales to 3,256 GWh. This was because in the comparable period last year, sharp decreases in oil prices affected pass-through charges.

Energy sales from the residential segment went up by 17 percent while the commercial and industrial segments grew by 6 percent.

As of end-June, interest-bearing liabilities amounted to P247.4 billion. —Lisbet K. Esmael INQ