AboitizPower third-quarter profit drops on weaker coal plant availability

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AboitizPower Q3 profit drop

Highlights

AboitizPower third-quarter net income drops 26% to P7.8 billion, while beneficial EBITDA falls 8% to P20.4 billion due to reduced coal plant availability.
For the first nine months of 2026, net income rises 13% to P26.2 billion and beneficial EBITDA grows 13% to P63.7 billion, driven by higher power generation margins and expanded renewable capacity.
Electricity sales from generation and retail improve 9% to 35,105 gigawatt-hours, pushing segment EBITDA up 14% to P58 billion; shares decline 2.71% to P44.80.

Third-quarter earnings pressure and nine-month gains

According to BusinessWorld, as disclosed to the Philippine Stock Exchange on Thursday, AboitizPower says third-quarter net income falls 26% to P7.8 billion from P10.6 billion a year earlier, while beneficial EBITDA declines 8% to P20.4 billion from P22.2 billion in the same period last year.

Third-quarter EBITDA is also down 11% from P23 billion in the second quarter, while net income slips from P10.5 billion. The company links the weaker quarterly performance to lower availability of its coal-fired power plants.

For the first nine months of 2026, however, net income rises 13% to P26.2 billion from P23.3 billion a year earlier. Core net income increases 11% to P25.5 billion from P23.1 billion, while beneficial EBITDA grows 13% to P63.7 billion from P56.3 billion.

AboitizPower says the nine-month improvement is driven by higher margins in its power generation business, backed by stronger electricity market prices, higher contracted capacity, additional capacity from the Caliraya-Botocan-Kalayaan Hydroelectric Power Plant Complex, and new solar power plants. Those gains more than offset the effect of lower coal plant availability during the period.

Sales growth, balance sheet position and market context

Electricity sales from the company's generation and retail supply businesses increase 9% to 35,105 gigawatt-hours from 32,138 gigawatt-hours a year earlier, lifting segment EBITDA 14% to P58 billion from P50.9 billion.

Electricity sales from the distribution business rise 8% to 5,576 gigawatt-hours from 5,167 gigawatt-hours, while distribution EBITDA edges up 1% to P7.1 billion from P7 billion, supported by higher sales volume.

Total consolidated assets stand at P647.8 billion as of Sept. 30, up 4% from P622.8 billion at the end of 2025. Cash and cash equivalents reach P60.2 billion, consolidated interest-bearing liabilities total P331.2 billion, and equity attributable to parent shareholders comes to P216 billion.

The company reports a current ratio of 0.8 times and a net debt-to-equity ratio of 1.2 times as of Sept. 30. AboitizPower is the holding company for the Aboitiz Group's investments in power generation, distribution and retail electricity services, and the wider group accounts for 24.3% of the Philippines' installed generating capacity, or 6,850.63 megawatts, based on Energy Regulatory Commission data. Shares in AboitizPower fall 2.71% to P44.80 on Thursday.

Our earlier coverage of the Philippines’ planned sovereign bond reforms explained how the new pricing convention for peso government bonds and the expected inclusion in a major emerging-market bond index could broaden the investor base and improve liquidity. We also noted that cheaper funding and stronger capital inflows are not automatic and ultimately depend on global rates, fiscal credibility, and deeper structural reforms that help businesses access financing and invest productively.

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