COVER SHEET C 1 9 9 8 0 0 1 3 4 - AboitizPower

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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x

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

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Date: May 6, 2014