AboitizPower 2Q income more than doubles

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Aboitiz Power Corporation recorded a consolidated net income of Php4 billion for the second quarter of 2021, 136% higher than the Php1.7 billion it got in the corresponding period in 2020.

In a disclosure to the Philippine Stock Exchange, AboitizPower attributed the increase in net income to commissioning revenue from its new facility, the 668-megawatt (MW) Unit 1 of the GNPower Dinginin coal-fired power plant, as well as higher water inflow, higher demand, and higher dispatch in the Wholesale Electricity Spot Market (WESM) in compliance with the must offer rule.

The firm also recognized non-recurring gains of Php34 million during the period, lower than the Php251 million non-recurring gains recorded during the same period last year. It said that without the one-off gains, its core net income was Php3.9 billion, 175% higher year-on-year.

AboitizPower was also able to claim liquidated damages for the delay in the construction of GNPower Dinginin and received the final payment for business interruption claims resulting from the outages of neighboring GNPower Mariveles in 2019.

“We’ve seen more economic activity in the first half with the easing of COVID-related restrictions. The increase in energy demand helped us recover from our financial performance in the same period last year,” AboitizPower President and CEO Emmanuel Rubio said.

Rubio said GNPower Dinginin Unit 1 will begin commercial operations later this year and deliver the much needed additional capacity to the Luzon grid. The 1,336MW plant is expected to fully function in 2022 with Unit 2, also rated at 668MW, expected to come in.

He added that in the next ten years, the firm aims to grow its Cleanergy renewable energy (RE) portfolio to 4,600MW with several projects already in various stages of development.

“The significant growth of Cleanergy will bring our overall capacity to 9,200 MW by 2030, with a 50:50 balance between renewables and thermal. This is our contribution to addressing the country’s energy trilemma of the reliability, affordability, and sustainability of our energy supply,” Rubio added.

AboitizPower, the country’s largest power generator, previously reported that its first quarter consolidated net income nearly tripled to Php6.2 billion from Php2.1 billion year-on-year due to high water inflows, higher availability of its thermal plants, and higher WESM sales, which offset the lower electricity demand due to the lockdown restrictions. 

Last month, AboitizPower’s three run-of-river hydropower plants in Bakun, Benguet were forcibly shut down due to a cease and desist order issued by the National Commission on Indigenous Peoples. This is despite the backing it received from the Department of Energy in the wake of the Luzon Red Alerts.