cover sheet c 1 9 9 8 0 0 1 3 4 - aboitizpower
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C 1 9 9 8 0 0 1 3 4
A B O I T I Z P O W E R C O R P O R A T I O N
3 2 N D S T R E E T , B O N I F A C I O G L O B A L
C I T Y , T A G U I G C I T Y , M E T R O M A N I L A
P H I L I P P I N E S
3rd Monday of May
1 2 3 1 1 7 - C 0 5 1 9
S E C
Remarks = pls. Use black ink for scanning purposes
S.E.C. Registration Number
( Company's Full Name )
( Business Address: No. Street City / Town / Province )
COVER SHEET
Fiscal Year
FORM TYPE
M. JASMINE S. OPORTO
Contact Person Company Telephone Number
02- 886-2800
Secondary License Type, if Applicable
Amended Articles Number/SectionDept. Requiring this Doc
Month Day
Annual Meeting
Month Day
Total No. of Stockholders Domestic Foreign
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Document I.D. Cashier
S T A M P S
To be accomplished by SEC Personnel concerned
File Number LCU
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CURRENT REPORT UNDER SECTION 17
OF THE SECURITIES REGULATION CODE (SRC)
AND SRC RULE 17.2(c) THEREUNDER
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Date of Report (Date of earliest event reported)
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Exact name of registrant as specified in its charter
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Province, country or other jurisdiction Industry Classification Code
of incorporation
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Address of principal office Postal Code
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Former name or former address, if changed since last report
10. Securities registered pursuant to Sections 4 and 8 of the RSA
Title of Each Class Number of Shares of Common Stock
Outstanding and Amount of Debt Outstanding
(as of December 31, 2013)
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11. Indicate the item numbers reported herein: 9 ;<=>?@A<B=C DE=F<G
Aboitiz Power Corporation (AboitizPower or the Company) recorded a consolidated net
income of P4.2 billion (bn) for the quarter ending March 31, 2014, recording a decrease of 9%
year-on-year (YoY).
The revaluation of consolidated dollar loans and placements resulted to an unrealized non-
recurring loss amounting to P211.1 million (mn). Accounting for this, AboitizPower’s core net
income for the first quarter of 2014 amounted to P4.4 bn, 3% lower YoY.
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Power Generation
For the first quarter of 2014, the power generation business recorded an income contribution
of P3.6 bn, 10% lower as compared to the same period last year. When adjusted for non-
recurring items, the group registered a 3% YoY decrease in its core net income, from P3.9 bn
to P3.8 bn. The adverse impact on earnings was mainly attributable to the higher fuel cost
brought about by the implementation of the Geothermal Resource Sales Contract (GRSC) for
the Tiwi-Makban plants. The generation group’s income distribution for the quarter could
have been higher if not for the expiration of the Pagbilao plant’s income tax holiday.
The group’s average price for its power increased by 8% YoY during the quarter ended March
2014. This was on the back of a 16% YoY growth in the average selling price of electricity sold
to the spot market due to the increase in demand brought about by the entry of the summer
season as well as outages of several baseload plants towards the latter part of March.
Average selling prices under bilateral contracts also increased, registering growth of 6% YoY
largely due to the Company’s dollar-linked contracts and the entry of the Company’s oil-fired
barges in Navotas, which began operations last November 2013.
AboitizPower’s net generation grew by 10% from 2,450 GWh to 2,688 GWh for the period in
review. This was driven by the 12% YoY growth in power sales through bilateral contracts to
2,188 GWh resulting from the Pagbilao plant’s higher contracted levels with contestable
customers through Open Access. Meanwhile, spot market sales remained flat at a little above
500 GWh for the quarter.
On a capacity basis, the Company’s attributable sales increased by 25% YoY from 1,419 MW
to 1,780 MW. This was due to an increase in ancillary volumes as well as higher contracted
levels by the generation group. The equivalent in capacity sales for ancillary services for the
quarter in particular surged by 166% from just 59 MW a year ago to 156 MW.
During the period, AboitizPower added 14 MW to the Mindanao grid with the start of
commercial operations towards the end of February 2014 of its Tudaya 1 and 2 run-of-river
hydro plants. Meanwhile, works are ongoing for two other projects, namely the 14 MW
Sabangan run-of-river hydro plant and the 300 MW Davao coal plant, both of which are
expected to be completed in 2015.
Power Distribution
For the period in review, the power distribution group registered a 17% YoY earnings decline,
from P749.2 mn to P618.4 mn. The group’s attributable electricity sales for the quarter
increased by 5% to 1,000 GWh from 956 GWh a year ago. The growth in sales was primarily
driven by higher electricity sales to the industrial segment, registering a 9% increase in YoY
electricity sales. Nevertheless, the increase in sales were not enough to offset the higher
costs registered by Visayan Electric company, Inc. (VECO), Davao Light & Power Company, Inc.
(Davao Light), and Cotabato Light & Power Company (Cotabato Light) during the period.
The group’s year-to-date gross margin on a per kWh basis declined to P1.53 from P1.63 a
year ago. The decrease was due to the higher direct costs registered by the distribution group
during the quarter brought about by the lag in the recovery of VECO’s cost of purchased
power as well as the additional costs incurred by Davao Light and Cotabato Light due to the
running of their embedded plants to cover for the energy shortfall in the Mindanao grid
during the period.
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As of March 31, 2014, the Company’s total consolidated assets amounted to P200.2 bn, 3%
higher than the year-end 2013 level of P193.9 bn. The Company’s consolidated Cash and Cash
Equivalents was at P34.6 bn, while total consolidated interest-bearing liabilities was at P81.3
bn. Equity Attributable to Equity Holders of the Parent increased by 5% to P91.9 bn from the
year-end 2013 level. As of March 31, 2014, the Company’s current ratio was at 3.2x (versus
year-end 2013’s 2.9x), while net debt-to-equity ratio was at 0.5x (versus year-end 2013’s
0.5x).
SIGNATURE (S)
Pursuant to the requirements of the Securities Regulation Code, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.
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By
�5 �������5 �� Corporate Secretary
Date: May 6, 2014