Manila Standard Today reported that Aboitiz Power Corporation has registered a net income of PHP 12.9 billion in the first 6 months of 2010, up by nearly 600% from just PHP 1.9 billion in the same period last year.

Aboitiz Power said in a disclosure to the Philippine Stock Exchange that a surge in power sales and increased generation capacity boosted its profits to a record level.

The company's profits in the first 6 months of 2010 eclipsed that of Manila Electric Co, the country’s biggest power retailer. Meralco earlier reported a core net income of PHP 5.805 billion in the first 6 months, up by 82% YoY from PHP 3.185 billion.

Meralco attributed the higher profits in the first six months to the significantly higher volume of energy sold following the surge in demand from all customer classes, led by the industrial sector. Meralco said it was on track to achieve its P11-billion net income target this year on projected revenues of P240 billion.

Aboitiz Power said that core net income jumped 325% to PHP 5.8 billion in the January to June 2010 period. It said the power generation business, which accounted for 96% of total earnings, registered an income of PHP 12.8 billion in the first semester, up by 1,121% YoY. It attributed the higher income to the 356% YoY increase in total attributable power sales from 1,093 GWH to 4,984 GWH.

Aboitiz Power's attributable capacity rose by 93% to 2,014 MW as of end June 2010. It said it assumed control over the 700 MW contracted capacity of the Pagbilao coal fired power plant in October 2009 and took over two 100 MW power barges in the first quarter of this year.

Aboitiz Power also began operations of the 26 MW unit of Sibulan hydropower plant in March and the two 82 MW units of the 26% owned Cebu coal fired power plant in February and May.

Total power attributable electricity sales rose by 90% to 1,753 GWH. The industrial segment led other sectors with a 12% YoY growth, while residential and commercial accounts registered 6% and 5% YoY expansions, respectively. Consolidated assets amounted to PHP 122 billion at the end of June 2010, up by 10% from PHP 111 billion on year.

Power companies like Aboitiz and Meralco coped with a supply deficit and corresponding higher power rates after the El Niño weather phenomenon dried up hydroelectric dams. Rotating brownouts hit the Luzon grid as a result of deficient supply.

(Sourced from www.manilastandardtoday.com)