700 MW expansion plan of AboitizPower stays despite lower '11 income

Undaunted by a 14 percent drop in consolidated net income to P21.6 billion last year, AboitizPower said Thursday it will forge ahead with its plans to expand generating capacity by about 700 megawatts (MW) from 2012 to 2015. AboitizPower president and CEO Erramon Aboitiz also said they expect bilateral contracts to add to future growth. “The strength of our power business lies in our diversified, complementary and competitive portfolio of generating assets. We have also been able to mitigate earnings volatility through our contracting strategy. We are confident that this, couple with our experienced management team, provides us with the ingredients necessary to thrive in a more challenging environment with the onset of more competition, open access, and the full implementation of WESM nationwide,” Aboitiz said. The holding firm of the Aboitiz Group's power businesses disclosed that a 41 percent plunge in average prices in the Wholesale Electricity Spot Market made its power generation income fall by 16 percent, which was partly offset by gains in the distribution business. “For the year ending December 31, 2011, total attributable electricity sales increased by 3 percent year-on-year (YoY), from 3,606 GWh to 3,727 GWh. The industrial segment again led the pack, recording a 6 percent YoY growth, while residential and commercial accounts posted marginal declines during the year,” AboitizPower said in it statement on the operations and financial highlights of 2011. Last year's rains and storms which passed through Luzon elevated water levels in both Magat and Binga. “The combined income contribution of these assets in 2011 recorded an 81% YoY expansion,” the power firm said. Electricity sales last year rose 3 percent from 3,606 gigawatt-hours to 3,727 gigawatt-hours—with sales to industrial clients posting 6 percent year-on-year growth, but “residential and commercial accounts posted marginal declines during the year.” “We are confident that electricity consumption will kick up in 2012 with the expected growth in the economy,” Aboitiz said. — ELR, GMA News