By RUELLE CASTRO
Online stockbroker Colfinanial.com said power companies posted an average profit growth of 12.8 percent in the first nine months of the year.
“Growth was mainly driven by higher sales volume from newly added capacities, as well as fewer average outage hours of power plants,” it said, noting as well that three of the five companies it monitors – Aboitiz Power Corp., First Gen Corp. and Manila Electric Co. (Meralco) – delivered better-than- expected results.
Aboitiz Power posted a core profit of P26.7 billion, up 45.3 percent from last year, which Colfinancial said is already 88 percent of consensus forecast for the year.
“Earnings growth was mainly driven by the fresh earnings contribution from GNPower Dinginin and an increase in the earnings contribution from the distribution business,” it said.
GNPower Dinginin contributed to P13.3 billion in earnings for the period.
First Gen posted a recurring profit of $248.8 million, up 28.2 percent from last year, which is 83 percent of consensus for the year.
“Earnings were ahead of forecast mainly due to the strong results of EDC (Energy Development Corp.). The gas plants’ earnings were in line with forecast, while FG Hydro’s (First Gen Hydro Power Corp.) earnings were lower than expected,” it said.
Meralco posted core profit of P30 billion, up 53.1 percent from last year’s, and is 100 percent of consensus forecast.
“Net distribution revenues rose 16.3 percent to P51.5 billion, brought about the 4.4 percent increase in sales volume during the period, and as last year’s distribution revenues were dragged down by Meralco’s customer refund from asset true-up and lapsed period rate true-up,” Colfinancial said.
It added sales volume grew 4.4 percent for the period amid a “strong recovery in power demand from the commercial segment of the market, modest growth of the residential segment.”
The demand surge in these segments, however, was offset by the decline in the industrial segment.
Some power companies also benefited from higher sales volume from new capacities and fewer instances of unplanned outages and other technical issues.
Colfinancial.com noted that Aboitiz Power’s sales volume benefited from the full commercial operation of the Dinginin coal plant, as well as higher capacity availability due to lesser outage hours as last year’s power plants suffered from the curtailment due to Typhoon Odette.
Semirara Mining and Power Corp. meanwhile benefited from higher sales volume as its Sem-Calaca Power Corp. unit 2 returned to commercial operation after suffering an extended period of unplanned outage.
