Aboitiz Group to double power capacity to 4,000 MW in 5 yrs

MANILA, Philippines - The Aboitiz Group is targeting to double its power generation capacity in the Philippines to roughly 4,000 megawatts in the next five years and expand its power business outside the country as it hopes to hitch on the rapidly growing Asia Pacific regional economy, company officials said yesterday.

In a press conference after its annual stockholders’ meeting, Aboitiz Power president and chief executive officer Erramon Aboitiz said the group is looking at opportunities in Southeast Asia and the Pacific, although nothing has been firmed up yet.

“We’re willing to look at opportunities abroad. We’re looking at Papua New Guinea and opportunities in Indonesia. We’re still firming this up,” he told reporters.

Similar to its portfolio in the country, the Aboitiz Group’s regional power business would also likely be as varied, possibly through the development of existing facilities.

“We’re looking at geothermal, hydropower, etc. We’re talking to some partners. Our preference is not greenfield (projects),” Aboitiz added.

In the Philippines, power generation arm is Aboitiz Power expanding its capacity by 2,000 MW in the next five years.

“Together with our partners, we are looking at investing up to P80 billion in greenfield and brownfield projects across the country in 2014. This is just part of our more ambitious plan to expand our power generation capacity by about 2,000 MW over the next five years,” Aboitiz said.

“Right now, we have about 2,300 MW of capacity,” he added.

The additional 2,000 MW will come from the planned 300-MW coal-fired power plant of Aboitiz Power, through it subsidiary AP Therma South Inc., in Davao, which is targeted to be completed next year with plans to expand it by another 300 MW; the 300 MW-coal fired power plant of Therma Visayas which will be put up in Cebu and which could be expanded by 150 MW in the next couple of years; the planned expansion of the Pagbilao coal plant in Quezon which would add 400 MW; and the 153.1 MW Naga plant in Cebu, which Aboitiz recently bagged in an auction conducted by the Power Sector Assets and Liabilities Management Corp. (PSALM).

Aboitiz is also still hoping that the planned 600 MW coal-fired power plant of RP Energy in Subic would finally hurdle legal issues. The project, stuck in legal battle, is a joint venture between Aboitiz and MGen, the power generation subsidiary of Manila Electric Co. (Meralco).

“We also have an assortment of other plants – hydropower, geothermal and solar,” he said.

Aboitiz said the company is keen on more renewable projects and hopes to add solar energy to its portfolio to supplement its hydroelectric and geothermal projects.

In the first three months of the year, Aboitiz Power posted earnings of P4.2 billion, nine percent lower than year-ago figures.

“But the company’s earnings before interest, taxes, depreciation and amortization or EBITDA, amounted to P8.6 billion, 13 percent higher, year-on-year,” the company said in a statement yesterday.