Aboitiz Power Corporation (AboitizPower) posted decreased earnings for the first quarter of 2025 as weaker electricity prices, scheduled plant outages, and higher financing costs weighed on its bottom line. Despite all of this, the company remains focused on long-term growth, emphasized by a major investment in expanding its power portfolio.
The company reported a 41% drop in net income, falling to Php4.62 billion from Php7.86 billion compared to the same period last year. The decrease was primarily due to lower spot market prices, reduced power generation from scheduled outages at the Pagbilao, Therma Visayas, Inc., and GNPower Mariveles Energy Center Ltd. Co. plants, higher borrowing costs tied to recent acquisitions, and the recognition of depreciation and interest expenses by GNPower Dinginin Ltd. Co. starting in March 2024, partly offset by additional equity earnings from Chromite Gas.
“We faced several headwinds this quarter, including plant outages and less favorable market conditions, but our long-term strategy remains intact,” AboitizPower said in its report to regulators.
Total revenues reached Php44.2 billion, a slight decline of 2%, while expenses dipped 1% to Php37.3 billion. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at Php13.5 billion, down 17% year-on-year.
The report also showed that AboitizPower’s cash reserves dropped to Php43.5 billion, down from Php56.8 billion at the start of the year. This was primarily due to the payment of Php16.9 billion in dividends, with additional pressure from financing activities related to the Php49.72 billion acquisition of Chromite Gas Holdings, primarily funded through short-term loans. This strategic move aims to expand the company’s natural gas portfolio.
“We are positioning ourselves for the future,” the company reported, noting that the acquisition will help diversify its generation mix and improve energy security.
AboitizPower’s generation and retail electricity business sold 8,650 gigawatt-hours (GWh) during the quarter—slightly below last year’s 8,812 GWh—resulting in a 10% decline in earnings for the segment. Meanwhile, its distribution business posted Php2 billion in earnings, 4% lower year-on-year, partly due to a one-time regulatory refund.
Despite the short-term dip in performance, the company reaffirmed its commitment to growth and sustainability. It plans to spend Php78 billion in capital expenditures this year, with 66% allocated to renewable energy projects such as solar, hydro, and battery storage systems. The remainder will go toward upgrading baseload plants and infrastructure for its distribution network.
By the end of March 2025, AboitizPower’s total assets stood at Php549.4 billion, while total liabilities rose to Php348.2 billion. Its debt-to-equity ratio climbed to 1.73x, reflecting the new debt taken on to fund its recent expansion.
Looking ahead, the company states that it remains vigilant amid global economic shifts, regulatory changes, and climate-related risks. AboitizPower noted that its risk management systems are in place to navigate market volatility and ensure long-term value for its stakeholders.
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