C04769-2017

SECURITIES AND EXCHANGE COMMISSIONSEC FORM 17-C

CURRENT REPORT UNDER SECTION 17
OF THE SECURITIES REGULATION CODE
AND SRC RULE 17.2(c) THEREUNDER

1. Date of Report (Date of earliest event reported)
Aug 2, 2017
2. SEC Identification Number
C199800134
3. BIR Tax Identification No.
200-652-460-000
4. Exact name of issuer as specified in its charter
ABOITIZ POWER CORPORATION
5. Province, country or other jurisdiction of incorporation
Philippines
6. Industry Classification Code(SEC Use Only)
7. Address of principal office
32nd Street, Bonifacio Global City, Taguig City, Metro Manila, Philippines Postal Code 1634
8. Issuer's telephone number, including area code
(02) 886-2800
9. Former name or former address, if changed since last report
N/A
10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA
Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding
Common Stock P1 Par Value 7,358,604,307
Amount of Debt Outstanding (As of Mar. 31, 2017) 213,084,290,000.00
11. Indicate the item numbers reported herein
9

The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party.

Aboitiz Power CorporationAP

PSE Disclosure Form 4-31 - Press Release References: SRC Rule 17 (SEC Form 17-C)
Section 4.4 of the Revised Disclosure Rules

Subject of the Disclosure

AboitizPower posts P9.7 billion net income in first half
Background/Description of the Disclosure

As 2017’s first half drew to a close, Aboitiz Power Corporation (AboitizPower or the “Company”) saw an 18% year-on-year (YoY) increase in consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization), from P18.4 billion to P21.8 billion.

"Our core power generation and power distribution businesses have continued to post significant growth. Our new power plants are contributing significantly while our existing power plants are continuously improving in terms of availability and reliability. We will continue, likewise, to take advantage of the economic growth in our franchise areas by providing reliable and cost-effective power coupled with the best possible service,” said Antonio R. Moraza, AboitizPower President and Chief Operating Officer.

"Our projects in the pipeline are on track and continue to be aligned with our balanced-mix strategy. These projects will push us to reaching our target of 4,000 MW of net attributable capacity by 2020,” Moraza added.

However, increased interest expense and depreciation narrowed the growth at the core net income level to 6% YoY, from P9.8 billion to P10.5 billion. The Company posted a net income of P9.7 billion for the first half of the year -- a 2% decline YoY attributed to non-recurring losses of P744 million (versus last year’s gain of P130 million) from foreign exchange losses on the revaluation of dollar-denominated liabilities.

Business Segments

Power Generation

The power generation business group accounted for 84% of AboitizPower’s EBITDA, recording a consolidated share of P18.0 billion for the first half of 2017, up 22% YoY. At the core net income level, the generation business grew 8% YoY from P8.2 billion to P8.9 billion. After taking into account one-off items, AboitizPower’s generation business income contribution amounted to P8.1 billion, almost flat compared to the same period last year.

For the period, AboitizPower’s capacity sold increased by 33% YoY, from 2,033 megawatts (MW) to 2,706 MW, mainly driven by the additional capacity of GNPower Mariveles Coal Plant Ltd. Co. and higher capacity sold from hydro units due to better hydrology in 2017.

Power Distribution

EBITDA for the distribution business increased by 3% YoY from P3.3 billion to P3.4 billion. Net income contribution increased by 3% YoY for the first half of 2017 to P1.8 billion.

The group’s gross margin on a per-kilowatt-hour basis for the period increased to P1.63 from P1.50 in the first half of the year. The improved margins came from better supply mix and recoveries on purchased power costs.

AboitizPower’s attributable sales in the distribution group for the period was at 2,546 gigawatt-hours, registering a 1.4% increase from the same period last year.

About AboitizPower AboitizPower is the holding company for the Aboitiz Group’s investments in power generation, distribution, and retail electricity services.

The Company is one of the largest power producers in the Philippines with a right-mix portfolio of assets located across the country. It is a major producer of Cleanergy, its brand for clean and renewable energy with several hydroelectric and geothermal power generation facilities. It also has various fossil-fired power plants in its generation portfolio to support the baseload and peak energy demands of the country.
The Company also owns distribution utilities that operate in high-growth areas in Luzon, Visayas, and Mindanao, including the second and third largest private utilities in the country.

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For further queries on this Press Release, please contact:

WILFREDO A. RODOLFO III
Corporate Branding and Communication
ABOITIZ POWER CORPORATION
[email protected]
+632 886-2800 local 36502
+63917 6348395
Other Relevant Information

Please see attached.
Filed on behalf by:
Name Mailene de la Torre
Designation Associate General Counsel