AboitizPower’s net profit down 4% in H1

Blame it on depreciation and interest expenses.

The Philippines’ AboitizPower reported a 4% decline in its earnings for the first half (H1) of 2024 to $292.52m (PHP17.1b) due to recognition of depreciation and interest for two units of its coal-fired power plant GNPower Dinginin.

In a bourse filing, the company said net profit for the period fell from $304.5m (PHP17.8b) recorded in the same period last year.

Meanwhile, its earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 8% to $620.99m (PHP36.3b) in the first six months of the year driven by higher generation portfolio margins.

AboitizPower’s generation and retail supply business EBITDA in the same period increased 10% to $564.54m (PHP33.0b), thanks to higher portfolio margins and energisation of its Cayanga and Laoag solar plants. Energy sold for the first half of 2024 was at 17,758 gigawatt-hours (GWh)

On distribution, AboitizPower said EBITDA fell 16% to $71.85m (PHP4.2b) in H1 which was mainly the result of the favourable timing of pass through charges due to the steep decline in fuel prices in that year. 

“Nevertheless, energy sales increased by 9% to 3,256 GWh in the first half of 2024, compared to 2,983 GWh in the same period in 2023 due to the higher demand driven by the effect of the El Niño phenomenon. Energy sales from Residential, Commercial and Industrial customers increased by 17% and 6% year-on-year, respectively,” it added.

$1 = PHP58.46