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Aboitiz Power Corporation (APC) is a holding company that, through its subsidiaries and affiliates, is a leader in the Philippine hydroelectric power generation industry and has interests in some of the largest privately-owned distribution utilities in the Philippines. Since its incorporation in 1998, APC has accumulated interests in both hydroelectric power generation facilities and in thermal plants.
As of December 31, 2006, APC’s hydroelectric power generation facilities had a total installed capacity of 108.2 MW, of which 73.2 MW is attributable to APC. These hydroelectric generation facilities generated a total attributable energy of 299.6 GWh in 2006. In December 2006, APC and its partner, SN Power Invest AS (“SN Power”), through their joint venture company SN Aboitiz Power, Inc. (“SNAP”), won the bidding conducted by PSALM for the 360 MW Magat hydroelectric plant, which was turned over to SNAP on April 25, 2007. This increased the total installed capacity of APC’s hydroelectric power generation facilities to 468.2 MW, of which 253.2 MW is attributable to APC.
As of December 31, 2006, APC’s thermal plants had a total installed capacity of 186.6 MW, of which 92.7 MW is attributable to APC. This includes 61.6 MW of installed capacity used by two of APC’s distribution utilities for back-up power. In 2006, these facilities generated a total of 418.7 GWh. On April 20, 2007, APC acquired ownership interests in a 50 MW thermal plant operating in Mactan island and a 70 MW thermal plant operating in Cebu City. This increased the total installed capacity of APC’s thermal plants to 306.6 MW, of which 159.6 MW is attributable to APC.
APC also recently acquired ownership interests in power distribution companies from Aboitiz Equity Ventures, Inc. (“AEV”) and as a result, APC owns interests in several distribution utilities in Luzon, Visayas and Mindanao, including Visayan Electric Company, Inc. (“VECO”) and Davao Light & Power Company, Inc. (“DLPC”), which are respectively the second- and third-largest privately-owned distribution utilities in the Philippines in terms of both customers and annual GWh sales. APC also owns interests in Cotabato Light & Power Company, Inc. (“CLPC”), Subic Enerzone Corporation (“SEZ”) and San Fernando Electric Light and Power Co., Inc. (“SFELAPCO”). In 2006, the Distribution Companies distributed 3,498 GWh of electricity to approximately 616,261 customers.
In April 2007, APC acquired 50,000,000 common shares representing 50% of the outstanding capital stock of East Asia Utilities Corporation (EAUC) from El Paso Philippines Energy Company, Inc. (EPPECI).
APC also acquired 3,600,000 common shares of EAUC’s wholly owned subsidiary, Cebu Private Power Corporation (CPPC), representing approximately 48% of the total outstanding shares of CPPC. These assets were part of the Philippine electricity generation assets acquired by the Avenue Capital Group, the ultimate owner of EPPECI, from Globeleq Asia Holdings Limited after Globeleq bought out the generation assets of Texas-based El Paso Global Power in India, Indonesia and the Philippines.
EAUC operates a 50 mw thermal plant within the Mactan Export Processing Zone I (MEPZ I) in Mactan Island, Cebu. Since 1997, the EAUC power plant has been the sole provider of power to MEPZ I delivering reliable, high quality power to meet the stringent requirements of semiconductor firms, electronics manufacturers and other locators within the zone.
CPPC owns and operates a 70 mw thermal plant in Cebu City, one of the largest power plants in the island of Cebu, under a Build-Operate-Transfer contract to supply 62 mw of power to Visayan Electric Company, Inc. (VECO).
APC’s controlling shareholder, AEV, is a diversified conglomerate that is listed on the Philippine Stock Exchange and has interests in power generation, power distribution, financial services, transportation and food manufacturing. This relationship allows APC to draw on the extensive business networks, local business knowledge, relationships and expertise of AEV’s and the Aboitiz Group’s senior managers to identify growth opportunities at an early stage and to capitalize on such opportunities more decisively.