AboitizPower buys back shares amid PSE slump

Aboitiz Power Corp., or AboitizPower, purchased 11.407 million of its shares as part of its buy-back program as of the 19 September closing.

The company said the move was needed to "create further shareholder value" as its current share price range fails to reflect the value of the company.

As the shares are undervalued due to the poor state of the market, the buyback is expected to inspire investors to look at the real value of the shares.

"Even with this stock buy-back program, there is no intention to delist from the PSE, but merely to reward our existing shareholders with a larger share of a brighter future," the company said.

The Philippine Stock Exchange or PSE, however, announced AboitizPower, the listed investment arm of the Aboitiz Group for energy-related ventures, will be dropped from the index of bellwether shares by next week.

In a memorandum dated 20 September, PSE president Ramon Monzon confirmed AboitizPower's removal from the index will be effective starting 26 September. This developed even after AboitizPower committed not to exit the index amid speculations that the company may opt to delist after its public float fell below the required threshold.

Based on the new rules governing the PSE, all companies in the local bourse indices are required to maintain a minimum public float level of 20 percent.

AboitizPower chief executive officer Emmanuel Rubio also conveyed that the company, which accounts for one out of every five megawatts or MW of installed capacity in the Philippines, is still in a strong position to create long-term shareholder value.

"With a pipeline of about 1,000 MW of new renewable energy capacity, we are well on our way to contributing an additional 3,700 MW of clean electricity," Rubio said.
During the first half of the year, the company reported that it logged a P17.8-billion net income, 79 percent higher than the P10 billion recorded in the same period a year ago.

During the second quarter alone, the company's net income reached P10.3 billion, 46 percent higher than last year's P7 billion.

AboitizPower's generation and retail supply businesses recorded earnings before interest, taxes, depreciation, and amortization or EBITDA of P30.2 billion during the first six months.

The EBITDA, used to measure a company's financial health and ability to generate cash, was 31 percent higher than the P23.1 billion recorded in the same period last year due to "fresh contributions" from GNPower Dinginin.

From the start of the year until the end of June, AboitizPower said its capacity sold increased by 25 percent to 4,718 MW from 3,785 MW a year ago.