AboitizPower Feels Margin Pressure as Revenue Slips and Costs Climb

Aboitiz Power Corporation posted weaker results for the first nine months of 2025, as operating revenues fell 2.7% year-on-year to ₱144.33 billion from ₱148.32 billion in the same period last year. The decline came despite a 19% surge in energy sales to 32,138 GWh, as spot market prices plunged by about 33% amid cooler weather, slower economic activity, and oversupply from new renewable capacity under the Green Energy Auction Program.

While revenue softened, operating expenses edged up 0.8% to ₱118.00 billion, driven by higher purchased power costs, increased operations and maintenance, and rising general and administrative expenses. Depreciation and amortization also climbed as the company absorbed the full impact of GNPower Dinginin’s units and new renewable assets.

This cost escalation compressed margins, with EBITDA slipping 6% to ₱52.00 billion from ₱55.26 billion a year earlier. Management attributed the EBITDA decline primarily to lower Wholesale Electricity Spot Market (WESM) prices and scheduled plant outages early in the year, which limited flexibility to capture high-price periods.

Net income attributable to equity holders fell 15% to ₱23.30 billion, further weighed down by a ₱2.47 billion jump in interest expense following short-term borrowings and a ₱30 billion bond issuance to finance the Chromite Gas Holdings acquisition.

Despite these headwinds, AboitizPower maintained its commitment to shareholder returns, declaring regular cash dividends of ₱2.35 per share (₱16.93 billion) during the period and continuing its share buy-back program as part of its capital management strategy. The company emphasized that its strong balance sheet and gearing ratio of 51.8% provide flexibility to sustain these initiatives while pursuing growth.

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