Aboitiz Power to start $1.5B Greenfields projects this year

CEBU, Philippines - The Aboitiz Power Corporation (AP) will start its US$1.5 billion power generation Greenfield projects this year, which will add to the company’s installed capacity.

A total of seven new power plants will be built by AP this year, two of which will be coal-powered plant, while the five plants will utilize the renewable-hydro resources.

In an interview with Aboitiz Equity Ventures (AEV) chief reputation officer (CRO) Sebastian Lacson over the weekend, he said the new greenfield projects will provide a total of 900 megawatt additional capacity of the giant power generation firm by 2014.

At present, AP’s installed capacity is at 2,069 megawatt, of which 868 megawatt is sourced from renewable energy source via hydro.

These seven new power plants will be installed in Davao, Subic, and the five hydro plants will be built in Mindanao, Lacson said.

Last year, the company allocated a P17.4 capital expenditure (capex) for the expansion of its power generation plants across the country.

AP’s 2009 performance as total consolidated revenues grew by 89 percent, hitting P23-billion mark.

The growth was mainly due to the fresh top-line contributions of the acquired generation assets that were turned over to the company in 2009.

Cebu headquartered AP closed 2009 with a record net income of P5.7 billion, 31 percent higher than in 2008.

“Our country will demand more power in its hunger for growth and progress. We are therefore ramping up our capabilities to develop Greenfield projects to help boost the country’s power requirements. We remain committed to provide available, affordable and acceptable energy to our customers,” said AP president and chief executive officer (CEO) Erramon Aboitiz in an earlier interview.

The generation business accounted for 75 percent of AP’s total earnings, contributing P4.7 billion in 2009, up by 68 percent. This was on the back of a 167 percent year-on-year (YOY) rise in total attributable power sales, increasing from 1,728 gigawatt hours (GWh) to 4,619 GWh.

“We remain optimistic that the company will realize substantial growth from its existing distribution utilities. We expect to achieve this through healthy organic growth and widening margins when we attain rate increases as we enter the new Performance Based Regulation (PBR) regime,” Aboitiz said.

As of December 2009, AP’s total assets had increased by 136 percent, reaching P111 billion.

“Deregulation and open access will redefine the rules of the game, simultaneously introducing more opportunities and threats. We have, therefore, been reshaping the company to ensure that we capitalize on these developments by positioning our business and organization for a more challenging future,” said Aboitiz. (FREEMAN)