C01545-2018

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)
Mar 9, 2018
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, Philippine 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 Sept 30, 2017 222,237,327,000.00
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 net income up 2% in 2017

Background/Description of the Disclosure

Aboitiz Power Corporation (“AboitizPower” or the “Company”) saw its net income increase by 2% to P20.4 billion in 2017 versus P20 billion last year.

The Company recognized non-recurring losses of P2.9 billion (versus 2016’s non-recurring loss of P611 million), primarily due to asset impairment costs related to Aseagas Corporation (“Aseagas”) and debt prepayment costs on GN Power-Mariveles Coal Plant Ltd. Co (“GNPower-Mariveles”)’s loan, partially offset by a one-off recognition of lower interest expense from an acquired loan.

“Our bottomline was definitely affected with our decision to cease the operations of Aseagas. But looking at the actual performance of our operations, we have continued to grow in 2017, thanks to the improved reliability and availability of our plants,” said Antonio R. Moraza, AboitizPower President and Chief Operating Officer.

Without these one-off adjustments, the company’s core net income grew 13% in 2017, from P20.6 billion to P23.3 billion. The Company’s consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) grew from P38.1 billion to P47.7 billion, a 25% year-on-year (YoY) increase, driven by the contribution of GNPower-Mariveles to the coal group, and higher water inflows in the hydro group.

Business Segments

Power Generation

The power generation business accounted for 83% of the EBITDA contributions from AboitizPower’s business segments and recorded a consolidated EBITDA share of P38.8 billion, up 27% YoY.

AboitizPower’s capacity sold during 2017 increased by 41% YoY, from 2,223 MW to 3,124 MW, mainly driven by the additional capacities from GNPower-Mariveles, higher generation of its hydro units, and more capacities contracted.

Power Distribution

EBITDA for AboitizPower’s power distribution business increased by 14% YoY, rising from P6.8 billion to P7.8 billion.

The group’s gross margin on a per kilowatt-hour basis increased to P1.73 during 2017 from P1.59 for 2016. The improved margins came from adequate power supply, better supply mix, and recoveries on purchased power costs.

AboitizPower’s attributable sales in the distribution group for 2017 was at 5,288 gigawatt-hours, registering a 4% increase from 2016.

Moving forward, AboitizPower sees its portfolio continuing to expand across both renewable and non-renewable sources.

“AboitizPower will continue its Balance strategy — developing a mix complementing technologies that will allow us to deliver energy reliably, reasonably, and responsibly. Our portfolio has given us advantages in both fuel mix as well as geographical spread. We will pursue renewable energy (RE) and it is our intention to actively participate in the RE market,” Moraza noted.

About AboitizPower
AboitizPower is the holding company for the Aboitiz Group’s investments in power generation, distribution, and retail electricity services. It advances business and communities by providing reliable and ample power supply at a reasonable and competitive price, and with the least adverse effects on the environment and host communities.

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 Sammy Dave Santos
Designation Authorized Representative