AboitizPower logged a total of P17.3 billion net income for 2019, about 20 percent lower compared to the P21.7 billion earned in 2018.
The adjustment was mostly due to the outages experienced during 2019, higher replacement power costs, lower spot market sales, increased interest expense, and increased depreciation expense.
“While market conditions had an effect on our 2019 financial result, we acknowledge that it was primarily driven by operational issues. Having done all the necessary measures to address these technical realities, we are positive about a much stronger operational performance and attaining our targets this year,” said Emmanuel V. Rubio, AboitizPower President and Chief Operating Officer.
“We are also confident that our incoming capacities from GNPower Dinginin and full-year operations of Therma Visayas and Hedcor Bukidnon will contribute to our 2020 bottom line,” Rubio added.
AboitizPower’s generation and supply business also plummeted to P 36.2 billion in 2019, 16 percent lower than the P 43 billion recorded for 2018.
The main driver for the decrease was the need to purchase replacement power at higher spot market prices.
However, capacity sold for 2019 increased by 1 percent to 3, 184 MW from 3,154MW in 2018.
Energy sales also increased in 2019 with 5,851 gigawatt-hours (GWh), 6 percent higher than the 5,540 GWh recorded in 2018. However, the increase in earnigs was affected by lost margins from the decommissioning of Davao Light’s Bajada power plant.