Stockbroker Colfinancial.com said energy companies outperformed expectations in the first nine months of the year with three out of five companies it monitored delivering better than expected results.
Excluding one-offs, power companies’ nine months earnings grew 49 percent from last year, Colfinancial.com said.
“Growth was mainly driven by the surge in Semirara Mining and Power Corp.’s earnings due to the rise in coal prices. Excluding Semirara, earnings of power companies increased by 6 percent, with three out of the five companies in the sector delivering better than expected results – Semirara, Manila Electric Co., and Aboitiz Power Corp. First Gen Corp. performed in line with expectation, ” it said.
Colfinancial.com said a surge in power demands from commercial users led to volumes sold grow by 6.3 percent for the period.
“With the rebound, overall nine-month sales volume was already 4.4 percent above the pre-pandemic level in the nine months of 2109,” it said.
The increase in prices of electricity in the spot market, up 64.5 percent P7.32/kwh, also helped to boost profitability, Colfinancial.com said.
The favorable impact of high coal prices, however, and higher wholesale electricity spot market (WESM) prices was partially offset by unplanned outages and other technical issues.
Colfinancial.com noted AP’s power plants suffered from the impact of Typhoon Odette, Acen’s South Luzon Thermal Energy Corp. and Semirara’s Sem-Calaca Power Corp. suffered extended outages, while First Gen’s San Gabriel Power Plant operated at a de-rated capacity due to gas supply restriction of the Malampaya gas field.
Meralco posted profit of P19.6 billion, an 8.5 percent hike for the first nine months, exceeding Colfinancial.com expectations and is 82.7 percent of full-year forecast.
Net distribution revenues hit P44.34 billion, a 6.8 percent drop as sales volume grew 6.3 percent to 36,553Gwh.
Colfinancial.com however noted Meralco’s nine-month profit largely grew because of its Singapore gas plant, Pacific Light, Meralco’s gas plant investment in Singapore, which boosted other income to P7.2 billion.
Semirara posted profit of P35.9 billion, up 249.3 percent and above forecasts. Revenues hit P54.75 billion, an 89 percent uptick and is 82.7 percent of full year forecast.
“Earnings beat estimates due to the coal business’ better than expected earnings,” Colfinancial.com said.
Aboitiz Power posted profit of P18.3 billion, a 16.7 percent increase. Earnings growth was driven by the fresh earnings contribution of GNPower Dinginin, gains from commodity hedges, better availability of GNPower Mariveles, as well as higher water flow for the hydroelectric plants, which helped offset lower income from claims, the impact of Typhoon Odette , higher insurance cost as well as the decline in the distribution business.
First Gen posted profit of $194 million, an 8 percent drop. Colfinancial.com noted that First Gen’s gas plant earnings slightly missed forecast.
