Aboitiz Power Corp. expects to surpass its target 4,000 megawatts of power capacity earlier than 2020 with the completion of several plants in the next 12 months.
Aboitiz Power currently has a net sellable capacity of 3,955 MW, with 32 percent coming its geothermal, hydro and solar power plants.
The company is set to add more capacity to a balanced portfolio in the next 12 months, including the 69-MW Manolo Fortich and 8-MW Maris Canal hydro power plants, as well as the 400-MW Pagbilao 3 and 340-MW Therma Visayas thermal power plants.
Aboitiz Power chief executive officer Erramon Aboitiz said the company was on track to reaching its target of 4,000 MW in attributable capacity by 2020, while maintaining a healthy portfolio of renewable energy facilities.
“We will continue to push our balanced mix strategy because we believe that the long-term energy security of the country can be solved by balancing sustainability, accessibility, and reliability of power,” Aboitiz said.
The company on Tuesday celebrated its 10th listing anniversary at the Philippine Stock Exchange. The company said it was still focused on pursuing a balanced mix strategy while riding on the robust economic growth of the country.
On the power distribution front, the company will bank on the healthy economic growth in areas served by Visayan Electric Co., Davao Light and Power, Cotabato Light and and several economic zones. The distribution utilities serve around 900,000 customers.
Aboitiz Power closed P40.05 Tuesday, six times its initial price of P5.80 per share in 2007. This translates into a 28 percent total return to shareholders compounded annually. Its dividend policy of paying out half of the annual net income is one of the highest dividend yields in the PSE.
“We will remain strategic yet disciplined in our approach towards achieving our growth goals, always mindful of our role in nation building,” Aboitiz said.
The Aboitiz Group’s investments in the power industry started in the early 1900s when it invested in small utilities like Jolo Power and Ormoc Power.
It later acquired Davao Light and Power, Cotabato Light and Power, as well as Visayan Electric. It further expanded to power generation after the passage of the EPIRA Law in 2001.
The company built its first power plant, the 1.2-MW Irisan 3, in 1990 through subsidiary Hedcor.
Aboitiz Power earlier secured a certificate of permit from the Securities and Exchange Commission to issue P30-billion fixed-rate retail bonds to finance expansion.
The company announced in March it would undertake a peso denominated bond issuance of up to P30 billion this year to finance potential acquisitions and future projects.
“The company will use the proceeds of the retail bonds to finance potential acquisitions, future investments, and other general corporate requirements,” Aboitiz Power said.