Aboitiz Power profit drops 18%

Lower electricity prices and volumes to blame.

Aboitiz Power Corporation reported an 18% decline in its consolidated net income to US$113 million in the first quarter due largely to a drop in electricity prices and to a lower volume of electricity sold. Its core net income in the first three months fell 11% to US$110 million compared with a year ago

“Aboitiz Power remains very bullish on continued strong economic growth in the Philippines in 2013 and beyond,” said CEO Erramon Aboitiz.

“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.”

APC said its power generation business saw a 22% drop in earnings to US$98 million in the first quarter from US$125 million year-on-year caused by a drop in ancillary sales to the National Grid Corporation of the Philippines.

When adjusted for non-recurring items, APC posted a 15% drop in core net income in its power generation business to US$95 million.

While power sales through bilateral contracts fell by 11% to 1,948 gWh, spot market sales improved 96% to 502 gWh from 256 gWh a year ago.