Aboitiz Power Corporation

Beneficial EBITDA for first half 2026 was PHP 43.3 billion, up 27% from PHP 34.1 billion a year ago; 2Q beneficial EBITDA was PHP 23 billion, up 21% year on year and 13% quarter on quarter. Beneficial revenue rose 28% to PHP 110 billion from PHP 86.2 billion, and reported net income after tax increased 45% to PHP 18.4 billion from PHP 12.7 billion. Power Generation EBITDA was PHP 38.8 billion, up 30% year on year; DU EBITDA was PHP 4.3 billion, and RES added PHP 1 billion. Gross profit in Power Generation rose 23% to PHP 41.6 billion, with average gross profit per kWh up 4% to PHP 2.09; average bilateral contract revenue per kWh rose to PHP 5.64 from PHP 5.32, and spot revenue averaged PHP 6.29 from PHP 4.09. Energy sold increased 7% to 17.3 TWh, energy generated rose 11% to 22.7 TWh, and purchased power volumes increased 27% to 5.4 TWh. On the balance sheet, total interest-bearing debt fell to PHP 325.6 billion from PHP 332.5 billion, cash was PHP 62.7 billion, net debt was PHP 258.5 billion, and net debt-to-equity improved to 1.17x from 1.24x. Management also reiterated 2026 CapEx guidance of around PHP 62 billion, with about 80% to 85% for growth and about PHP 10 billion for MOB CapEx. No explicit next-quarter revenue or EPS guidance was given; management said it expects spot prices to be higher than its initial forecast for the rest of 2026 and probably into 2027, and that it is targeting to move baseload contracting from 90% toward 100% sometime next year.

Management emphasized that the first-half result was driven by the generation portfolio, new renewable and gas assets, and favorable market pricing, while noting that lower coal plant availability was offset successfully. The tone was constructive and execution-focused, with a clear strategy to keep building renewables, secure more baseload contracts, and expand the portfolio while maintaining balance sheet headroom. On the strategic side, they also framed regulatory issues as manageable through ongoing dialogue with policymakers and regulators.

The CFO highlighted a strong financial showing: EBITDA of PHP 43.3 billion, revenue of PHP 110 billion, and net income after tax of PHP 18.4 billion, plus improving leverage metrics. He said total debt eased to PHP 325.6 billion, cash stood at PHP 62.7 billion, and net debt-to-equity improved to 1.17x, supported by partial repayments of bridge financing used for the Chromite Gas acquisition. He also said 89% of debt is peso-denominated and PHP 128 billion matures beyond 2031, while 2026 CapEx is guided at about PHP 62 billion, mostly growth capex, with about PHP 10 billion for MOB capex. He added that retail bonds maturing in 2026 are planned to be refinanced, and that CBK bridge debt is expected to be taken out by a project finance loan before year-end.

Analysts focused heavily on system loss recovery, asking about the impact of disallowance and whether broader cost recovery would be affected; management said the near-term biggest impact could be removing VAT on system loss charges, but said it was too early to estimate financial impact or define contingency plans before the rules are finalized. Another major topic was transmission and reserve market regulation: management said point-to-point transmission costs can be included in project cost and recovered through PSA rates, while a lower reserve price ceiling would clearly reduce AP’s upside if implemented. Questions on TVI outages and line rental charges drew more direct answers: TVI’s two units were down due to steam turbine vibration issues, return to service is estimated by end-August, and the company said it has already absorbed the line rental impact in first-half results, with any reversal potentially showing up in 2H. Management also said CBK’s tariff filing is waiting on a payment and settlement mechanism plus a WESM rules amendment, and that most Chromite-related loans have already been settled.