Aboitiz Power takes in P4.1B profit in 2007

Aboitiz Power Corporation’s (AP) net income for 2007 grew by 124% to P4.1 billion from P1.8 billion in 2006.  This translates to earnings per share of P0.66 and P0.37 for 2007 and 2006, respectively. This earnings performance was at the back of a consolidated total revenue growth of 25% year-on-year, from P8.7 billion to P10.8 billion.

For the period in review, AP had a non-recurring income of P785 million due to foreign exchange net gains resulting from the revaluation of dollar-denominated loans and placements of some of its subsidiaries.  Despite these, AP’s 2007 recurring earnings of P3.4 billion was still robust with bottomline year-on-year growth of 81%. 

Income contribution from the power distribution business was up 52% to P1.5 billion in 2007, as total electricity sales grew by 7% year-on-year, from 2,507 gigawatt hours (GwH) to 2,673 GwH.   Sales contributions from AP’s acquisitions during the year further increased sales by 11% to 2,790 GwH.

In 2007 AP acquired 100% of Mactan EnerZone Corp. and 60% of Balamban Enerzone Corp., both located in Cebu province. The company also acquired an additional 36% of Subic Enerzone Corp., thus making its ownership in the Subic Freeport Zone utility to 100%.

Consolidated revenues amounted to P8.3 billion, recording a 5% year-on-year increase from P7.9 billion. 

The power generation business contributed P2.6 billion, a 213% jump from P829 million in the previous year.  Generating assets acquired in 2007 brought AP’s total attributable capacity to 490 MW, a 200% increase over 2006.  Power sales attributable to AP grew 176% from 369 GwH to 1,018 GwH.

Total consolidated revenue in 2007 increased by 219% year-on-year, from P782 million to P2.5 billion, primarily due to the topline contribution of 60%-owned Cebu Private Power Corporation.

As of yearend 2007, AP’s total consolidated assets amounted to P36.4 billion, up by 195% from yearend 2006 levels. The company is in a net cash position with Cash and Cash Equivalents at P13.3 billion and total consolidated interest bearing loans at P4.4 million. Current ratio is at 2.4x.

On July 16, 2007, AP listed its shares at the Philippine Stock Exchange. A total of 1,787,664,000 shares were issued and sold at an initial public offer price of P5.80 per share. Total proceeds of the offering amounted to P10.4 billion.

On March 3, 2008, AP paid a regular cash dividend of P0.18 per share or a total of P1.3 billion to all stockholders of record as of February 21, 2008.