AboitizPower Earnings Fall 41%, Focus Shifts to Growth

Aboitiz Power Corp. reported a steep 41% drop in net income for the first quarter of 2025, driven by lower electricity prices, scheduled plant outages, and higher financing costs.

The company’s net income fell to PHP 4.62 billion from PHP 7.86 billion in the same period last year, according to a regulatory filing released this week.

“We faced several headwinds this quarter, including plant outages and less favorable market conditions, but our long-term strategy remains intact,” AboitizPower stated.

Weaker spot market prices and reduced output from the Pagbilao, Therma Visayas, and GNPower Mariveles plants significantly affected power generation.

The decline was compounded by increased borrowing costs related to recent acquisitions and the recognition of depreciation and interest expenses from GNPower Dinginin starting March 2024.

Revenues slipped 2% to PHP 44.2 billion, while expenses dipped 1% to PHP 37.3 billion.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) dropped 17% year-on-year to PHP 13.5 billion.

AboitizPower’s cash reserves fell to PHP 43.5 billion from PHP 56.8 billion at the start of the year, largely due to a PHP 16.9 billion dividend payout and debt-servicing requirements.

A major contributor to the higher financing burden was the PHP 49.72 billion acquisition of Chromite Gas Holdings, which was primarily financed through short-term loans.

“We are positioning ourselves for the future,” the company said, adding that the Chromite acquisition would strengthen its natural gas portfolio and diversify its energy mix.

During the quarter, the company’s generation and retail electricity segment sold 8,650 gigawatt-hours (GWh), down slightly from 8,812 GWh last year.

This led to a 10% decline in earnings for the power generation segment.

The distribution business recorded PHP 2 billion in earnings, down 4% year-on-year, impacted by a one-time regulatory refund.

Despite short-term pressure, AboitizPower reaffirmed its long-term investment strategy with a PHP 78 billion capital expenditure plan for 2025.

Sixty-six percent of the capex budget is earmarked for renewable energy projects, including solar, hydro, and battery energy storage systems.

The remaining funds will support upgrades to baseload generation and improvements in the company’s distribution network.

Total assets reached PHP 549.4 billion by the end of March, while total liabilities rose to PHP 348.2 billion.

As a result, the company’s debt-to-equity ratio climbed to 1.73x, reflecting its increased reliance on debt to fund expansion.

The company emphasized that it remains vigilant in the face of global economic shifts, regulatory uncertainties, and climate-related challenges.