AboitizPower Marks Strong Performance for FY 2023
Aboitiz Power Corp. showcased robust financial performance in 2023, maintaining its strong upward trajectory that began three years ago, as it doubled down on its purpose of transforming energy for a better world.
The listed energy generation and distribution firm capped the year off with a 29-percent surge in core net income to P32.0 billion from P24.8 billion the year prior owing to its strategic investments and operational excellence across its generation portfolio.
The year 2023 also saw AboitizPower surpassing its pre-pandemic performance in terms of beneficial power sales, which are now five percent ahead from 2019.
Energy sold also witnessed an uptick, reaching 35,372 gigawatt-hours (GWh) – a 17-percent increase from 2022, with growth observed in the residential customer segment at eight percent and commercial and industrial energy sales at six percent.
The availability factor across AboitizPower’s portfolio has improved significantly and reached a five-year high in 2023, as a result of the higher reliability of its plants and effective risk management.
These strategic initiatives and operational efficiencies drove AboitizPower’s beneficial EBITDA to grow by 16 percent to P64.6 billion in 2023.
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The power arm of the Aboitiz Group has been treading on a growth path since 2021, after emerging from the effects of the pandemic. It fully recovered and passed its pre-pandemic profits in 2022, when it recorded a net income of P26 billion.
“Staying true to our Massive Transformation Purpose allowed us to maintain a growth trajectory by prioritizing both people and planet. We will continue to bring light to underserved communities and remain dedicated to a balanced approach to energy,” AboitizPower President and CEO Emmanuel “Manny” Rubio said.
Clear vision
AboitizPower's Massive Transformation Purpose revolves around the concept of "Transforming Energy for a Better World," emphasizing its dedication to creating a more sustainable and equitable energy landscape.
This purpose underscores AboitizPower's ambition to lead the way in accelerating the evolution of the energy sector, leveraging innovative solutions and sustainable practices to address environmental challenges and contribute to societal progress.
With this, AboitizPower is setting the charts to a greener energy future in the Philippines — one that is characterized by a shift towards renewable energy integration, technological innovation, and an expanding distribution network.
As the nation embraces sustainable energy solutions, Rubio said AboitizPower stands at the forefront, driving progress and fostering a greener future.
The company, he emphasized, is guided by the Aboitiz Group’s Great Transformation 2025 (GT2025), a mission that focuses on agility, innovation, and adaptation to technological shifts.
“We have a clear plan to transform energy for a better world. We are realizing our purpose by addressing the 4Ds — decarbonization, digitalization, decentralization, and development—framework and making great progress in our initiatives,” Rubio said.
But the road toward energy transformation is not without challenges. These include geopolitical issues that bring uncertainties to global supply chains, the anticipated effects of El Niño on hydroelectric power plants, as well as the risk of unavailable and insufficient transmission infrastructure.
On the demand side, consumption is expected to rise by 6.6 percent in 2024, requiring an additional capacity of as much as 700 MW per year.
“This substantial increase in electricity demand underscores the pivotal role of power generation, transmission, and distribution companies in meeting this need,” Aboitiz explained. “This requires significant infrastructure development, including constructing new power plants (both conventional and renewable), expanding the grid to ensure that power reaches demand centers, and improving the services, reach, and efficiency of our electric cooperatives and distribution units throughout the country.”
Beefing up energy portfolio to meet demand
Despite the challenges, Rubio is confident that AboitizPower has the ability to support the Philippines’ growing power needs, citing the company’s close to 1,000 MW of disclosed renewable energy projects and its long-term plan of building an additional 3.6 GW by 2030.
These projects are all aligned with the Department of Energy's (DOE) Philippine Energy Plan 2040, which aims to transform the country’s energy mix to 50-percent renewables by 2040.
The initial phase of this expansion strategy zeroes in on the development of solar and wind power plants with a combined capacity of up to 1,200 megawatts (MW).
Currently, AboitizPower is making substantial headway towards this goal, with construction underway for an additional 176 MW of RE expected to be operational by early 2024.
The Laoag Solar project, with a peak capacity of 159 MW, is advancing and slated for energization by the second quarter of 2024.
Likewise, the 94MW Cayanga Solar Project, synchronized operations on October 23, 2023, is anticipated to be commercially available by the second quarter of 2024.
Furthermore, SN Aboitiz Power (SNAP) is spearheading the 24 MW Magat Battery Energy Storage System (BESS) project to support Luzon's grid.
AboitizPower's subsidiary, Therma NatGas Power, is entering the LNG sector with a 40 percent acquisition of Chromite Gas Holdings, which plans to acquire stakes in two gas-fired power plants and an LNG import and regasification terminal.
As of March 2024, the Aboitiz Group dominates the Philippine power landscape as one of the largest energy producers, boasting an impressive total net sellable capacity of 5,322 megawatts (MW).
Stronger 2024
AboitizPower's strategic investments, coupled with its burgeoning renewable energy projects, position the company for sustained growth and profitability in the long run.
“We leverage our accelerating growth momentum and focus on our broader purpose of transforming energy for a better world,” Rubio said, also emphasizing on sustainability as a key component of AboitizPower’s daily operations.
In fact, AboitizPower has garnered acclaim for its proven performance in sustainability and corporate governance excellence.
The company's exemplary performance in S&P's Corporate Sustainability Assessment and Sustainalytics solidifies its position as a leading Filipino energy company that is dedicated to environmental stewardship and ethical business practices.
Furthermore, AboitizPower's consistent recognition with the prestigious Golden Arrow Award from the Institute of Corporate Directors underscores its adherence to exemplary corporate governance standards.
AboitizPower is not hitting the brakes soon. It is gearing up for a stronger 2024 and is investing heavily in new projects towards transforming energy for a better world.
For 2024, AboitizPower is allocating P73 billion pesos in capital expenditures, more than double the P26 billion it spent in 2023.
Majority, or 72 percent of its total capital outlays for 2024, is earmarked for its renewable energy pipeline, while the remaining budget is for the continuous improvement of the reliability of its baseload plants, as well as various land acquisitions, new substations, and new meters for our distribution business.
"As we look ahead, decarbonization, digitalization, decentralization, and development are re-shaping the domestic energy landscape. We recognize that we must navigate through these complexities while ensuring energy security, affordability, and sustainability for our fellow Filipinos. This requires a balanced approach and acknowledging the trade-offs inherent in these, sometimes, conflicting goals,” Rubio said.
