March 15, 2017 9:15 pm JST

Philippines' Aboitiz Power explores hydropower in Myanmar

Company taps nation of 61 million after setbacks in Indonesia

CLIFF VENZON, Nikkei staff writer

Aboitiz Power President Antonio Moraza says 2017 will be challenging for the company.

MANILA -- Aboitiz Power has started exploring potential hydroelectricity projects in Myanmar after withdrawing from a geothermal power deal in Indonesia, company President Antonio Moraza said on Wednesday.

Moraza said feasibility studies are being undertaken with Norwegian partner SN Power, which has hydropower expertise. The team-up is eyeing "several hundred" megawatts of power generation projects.

There is potentially 39,000 megawatts in hydropower that can be tapped in Myanmar, SN Power says on its website.

SN Power and Aboitiz are also working on a hydropower project in Indonesia's Central Sulawesi region, taking advantage of President Joko Widodo's efforts to bolster the country's power capacity.

Aboitiz's initial foray abroad has been met with some setbacks. In January, the company was forced to back out of a geothermal project with Medco Energi Internasional, a Jakarta-based oil and gas producer, in Indonesia's East Java province due to mounting costs. "[We] realized that it is riskier than we thought," Moraza said.

Its consortium also failed to acquire Chevron's geothermal assets in Indonesia and the Philippines.

Aboitiz in 2015 earmarked $500 million to expand overseas as overcapacity loomed at home.

Moraza says 2017 will be challenging for the company due to oversupply as delayed projects become operational.

He said Aboitiz, which ended 2016 with around 2,500MW attributable capacity, will use its scale and track record to secure bilateral power supply deals.

Philippines conglomerates San Miguel, Metro Pacific Investments, and Ayala Corp. are aggressively building up their respective power-generating portfolios, as competition increased.

Aboitiz's net income rose 14% to 20 billion pesos in 2016, as dry weather pushed up demand for power. 

Asia300

Aboitiz Power Corp.

Philippines

Market(Ticker): PHS(AP)
Sector:
Industry:
Utilities
Electric Utilities
Market cap(USD): 6,139.00M
Shares: 7,358.60M
Asia300

San Miguel Corp.

Philippines

Market(Ticker): PHS(SMC)
Sector:
Industry:
Consumer Non-Durables
Beverages: Alcoholic
Market cap(USD): 5,803.06M
Shares: 2,724.51M
Asia300

Metro Pacific Investments Corp.

Philippines

Market(Ticker): PHS(MPI)
Sector:
Industry:
Finance
Real Estate Development
Market cap(USD): 4,136.92M
Shares: 31,504.17M
Asia300

Ayala Corp.

Philippines

Market(Ticker): PHS(AC)
Sector:
Industry:
Finance
Financial Conglomerates
Market cap(USD): 10,805.64M
Shares: 620.72M

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