AboitizPower profit climbs but costs weigh on growth
Higher margins in its generation portfolio and increased energy sales from its distribution business helped offset the impact of depreciation and interest costs from its GNPower Dinginin Ltd. Co. coal plant.
Despite strong operational performance, Aboitiz Power Corp., the energy investment arm of the Aboitiz Group, reported a subdued earnings growth in 2024, weighed down by higher depreciation and interest costs.
In a market report on Friday, AboitizPower said its net income reached P33.9 billion last year, reflecting a marginal 2 percent increase from P33.1 billion in 2023.
The company said higher margins in its generation portfolio and increased energy sales from its distribution business helped offset the impact of depreciation and interest costs from its GNPower Dinginin Ltd. Co. (GNPD) coal plant.
Excluding GNPD-related costs, AboitizPower’s net income would have grown by 18 percent year-on-year. Core net income rose 5 percent to P33.7 billion from P32 billion in 2023.
Earnings before interest, taxes, depreciation, and amortization (EBITDA), another key measure of profitability, climbed 13 percent to P73.3 billion, driven by strong performance in its generation and distribution businesses.
Growth drivers
Additional capacity from the Laoag and Cayanga solar plants and growth in retail supply volume also contributed to earnings growth.
The generation and retail electricity supply segment posted an 11 percent increase in EBITDA to P66.7 billion, supported by new solar capacity and improved portfolio margins. Energy sold, however, remained flat at 36,004 gigawatt-hours.
Meanwhile, the distribution business saw a 13 percent rise in EBITDA, as energy sales grew due to increased demand from residential, commercial, and industrial customers, partly driven by the El Niño phenomenon.
As of end-2024, AboitizPower’s total consolidated assets stood at P517.6 billion, up 6 percent from P487 billion in 2023. Cash and cash equivalents amounted to P56.8 billion, while interest-bearing liabilities reached P243.2 billion.
This year, AboitizPower Chief Finance Officer Sandro Aboitiz said the company “intends to grow its momentum and we are excited to build the next wave of renewable energy projects in 2025 and beyond.”
“AboitizPower remains focused on delivering operational excellence in its power plants, developing a pipeline of new energy capacity, and pursuing opportunities in its distribution and retail business,” he said.