Aboitiz Power Corporation (AP)
Company information
Aboitiz Power Corporation (AP) was incorporated on February 13, 1998 as a holding company for the Aboitiz Group's investments in power generation and distribution. However, in order to prepare for growth in the power generation industry, AP was repositioned in the third quarter of 2003 as a holding company that owned only power generation assets. The divestment by AP of its power distribution assets was achieved through a property dividend declaration in the form of AP's ownership interests in the different power distribution companies. The property dividend declaration effectively transferred direct control over the Aboitiz Group's power distribution business to Aboitiz Equity Ventures, Inc. In 2005, AP consolidated its investments in mini-hydroelectric plants in a single company by transferring all of Hydro Electric Development Corporation's and Cleanergy, Inc.'s mini-hydroelectric assets into Hedcor, Inc.
Ownership in AP was opened to the public through an initial public offering of its common shares in July 2007. AP has investments in power generation and distribution companies throughout the Philippines. Since its incorporation, the Company has accumulated interests in both hydroelectric power generation plants and thermal plants.
Among AP's subsidiaries include Aboitiz Renewables, Inc.; SN Aboitiz Power-Magat Inc., Luzon Hydro Corporation; and Therma Power, Inc. The Company also has interests in distribution utilities and retail electricity suppliers. (Source: SEC Form 17-A (2012)
The Power Generation segment is engaged in the generation and supply of power to various customers under power supply contracts, ancillary service procurement agreements and for trading in the Philippine wholesale electricity spot market (WESM). The Company's subsidiaries include Cotabato Light & Power Company, Davao Light & Power Company, Inc and Subic Enerzone Corporation.
--The author initiates with the 2 (two) questions that are to be always considered prior to increasing any more interest in purchasing its junior securities (as has also been indicated in one of Warren Buffet’s, “Search for the Company with a Durable Competitive Advantage”) :
1. Does AP “sell a unique product or service?”
Probable yes, following the repositioning on 2003 the company is more focused on power generation rather than spreading its interest throughout other services related to the segment.
Ergo with this in mind, the author has derived other potential competitors here in this specified business segment(s) and is listed here (primarily related to power generation):
This includes Metro Manila, industrial estates and urban and suburban areas of adjacent provinces. The Company has three segments: power distribution segment, which is involved in the distribution and supply of electricity covering franchise areas in the Luzon region; the real estate segment, which is involved in real estate development and leasing, and the services segment is involved principally in engineering, construction and consulting services, e-transaction services and insurance. In March 2007, the Company acquired 100% interest in Republic Surety and Insurance Co. Effective December 11, 2013, JG Summit Holdings Inc acquired a 27.12% interest in Manila Electric Co.
As of December 31, 2012, First Philippine Holdings Corporation (FPH) directly owns 66.2% of the common shares of FGEN and 100% of FGEN's voting preferred shares. FPH is the ultimate parent company of FGEN.
Its power generation subsidiary, First Gen Corporation (First Gen), is a renewable energy producer, with power plants that use geothermal, hydro, and natural gas for fuel. Today, it has a total installed capacity of 2,832.6 MW, or 18.2% of the country’s total installed capacity.
First Gen manages the world's second largest geothermal power producer, Energy Development Corporation, which searches for indigenous, low-carbon energy alternatives.
The Company is a 52.8% owned subsidiary of Lopez, Inc. (Lopez), the ultimate parent company.
8. FPH (FIRST PHILIPPINE HOLDINGS) The Company's major business segments are in power generation, manufacturing operations and real estate development.
1. Next question will be, “is the company a seller of a product that the public constantly needs?”
A yes, power generation (similar to FPH), Philippines will always be in need of power/electricity providers (despite its already competitive state). This may also be envisioned in the Department of Energy’s outlook.
Company information
Aboitiz Power Corporation (AP) was incorporated on February 13, 1998 as a holding company for the Aboitiz Group's investments in power generation and distribution. However, in order to prepare for growth in the power generation industry, AP was repositioned in the third quarter of 2003 as a holding company that owned only power generation assets. The divestment by AP of its power distribution assets was achieved through a property dividend declaration in the form of AP's ownership interests in the different power distribution companies. The property dividend declaration effectively transferred direct control over the Aboitiz Group's power distribution business to Aboitiz Equity Ventures, Inc. In 2005, AP consolidated its investments in mini-hydroelectric plants in a single company by transferring all of Hydro Electric Development Corporation's and Cleanergy, Inc.'s mini-hydroelectric assets into Hedcor, Inc.
Ownership in AP was opened to the public through an initial public offering of its common shares in July 2007. AP has investments in power generation and distribution companies throughout the Philippines. Since its incorporation, the Company has accumulated interests in both hydroelectric power generation plants and thermal plants.
Among AP's subsidiaries include Aboitiz Renewables, Inc.; SN Aboitiz Power-Magat Inc., Luzon Hydro Corporation; and Therma Power, Inc. The Company also has interests in distribution utilities and retail electricity suppliers. (Source: SEC Form 17-A (2012)
The Power Generation segment is engaged in the generation and supply of power to various customers under power supply contracts, ancillary service procurement agreements and for trading in the Philippine wholesale electricity spot market (WESM). The Company's subsidiaries include Cotabato Light & Power Company, Davao Light & Power Company, Inc and Subic Enerzone Corporation.
--The author initiates with the 2 (two) questions that are to be always considered prior to increasing any more interest in purchasing its junior securities (as has also been indicated in one of Warren Buffet’s, “Search for the Company with a Durable Competitive Advantage”) :
1. Does AP “sell a unique product or service?”
Probable yes, following the repositioning on 2003 the company is more focused on power generation rather than spreading its interest throughout other services related to the segment.
Ergo with this in mind, the author has derived other potential competitors here in this specified business segment(s) and is listed here (primarily related to power generation):
- 1. Alsons Consolidated Resources Inc. (ACR), ACR's core businesses, conducted through its various subsidiaries and associates, are grouped into main categories consisting of energy and power, property development, and other investments.
- 2. Aboitiz Equity Ventures Inc (AEV), AEV is the public holding and management company of the Aboitiz Group of Companies. As of December 31, 2012, its core businesses, conducted through various subsidiaries and affiliates, are grouped into five main categories, namely, power distribution, power generation and retail electricity supply; financial services; food manufacturing; real estate; and portfolio investments.
- 3. Manila Electric Company (MER), MER is engaged in the distribution and sale of electric energy through its distribution network facilities in its franchise area. Its market is categorized into four sectors such as residential, commercial, industrial, and streetlights. principal sources of power of MER include the National Power Corporation, First Gas Power Corp. and FGP Corporation, Quezon Power (Phils.) Ltd., Wholesale Electricity Spot Market, AES Corporation (Masinloc), Therma Luzon, Inc. (Pagbilao), South Premier Power Corporation (Ilijan), AP Renewables, Inc. (Makban), San Miguel
This includes Metro Manila, industrial estates and urban and suburban areas of adjacent provinces. The Company has three segments: power distribution segment, which is involved in the distribution and supply of electricity covering franchise areas in the Luzon region; the real estate segment, which is involved in real estate development and leasing, and the services segment is involved principally in engineering, construction and consulting services, e-transaction services and insurance. In March 2007, the Company acquired 100% interest in Republic Surety and Insurance Co. Effective December 11, 2013, JG Summit Holdings Inc acquired a 27.12% interest in Manila Electric Co.
- 4. JG Summit Holdings, Inc. (JGS), JGS is a Philippines-based company which acts as a holding company with business interests in branded consumer foods, agro-industrial and commodity food products, property development and hotel management, telecommunications, air transportation, petrochemicals and international capital and financial services. In addition, the Company has business interests in other sectors, including power generation and insurance. Effective December 11, 2013, JG Summit Holdings Inc acquired a 27.12% interest in Manila Electric Co.
- 5. Energy Development Corporation (EDC), EDC was incorporated and registered with the Securities and Exchange Commission (SEC) on March 5, 1976 to primarily engage in the business of exploring, developing and operating geothermal energy projects in the Philippines.
- 6. First Gen Corporation (FGEN), FGEN was incorporated and registered with the Securities and Exchange Commission on December 22, 1998. FGEN and its subsidiaries are involved in the power generation business.
As of December 31, 2012, First Philippine Holdings Corporation (FPH) directly owns 66.2% of the common shares of FGEN and 100% of FGEN's voting preferred shares. FPH is the ultimate parent company of FGEN.
Its power generation subsidiary, First Gen Corporation (First Gen), is a renewable energy producer, with power plants that use geothermal, hydro, and natural gas for fuel. Today, it has a total installed capacity of 2,832.6 MW, or 18.2% of the country’s total installed capacity.
First Gen manages the world's second largest geothermal power producer, Energy Development Corporation, which searches for indigenous, low-carbon energy alternatives.
- 7. Lopez Holdings Corporation (LPZ), LPZ was incorporated in 1993 by the Lopez family to serve as the holding company for investments in multimedia communications, including broadcast, cable and telecom, and power generation, especially in the development of clean, indigenous and/or renewable energy sources.
The Company is a 52.8% owned subsidiary of Lopez, Inc. (Lopez), the ultimate parent company.
8. FPH (FIRST PHILIPPINE HOLDINGS) The Company's major business segments are in power generation, manufacturing operations and real estate development.
1. Next question will be, “is the company a seller of a product that the public constantly needs?”
A yes, power generation (similar to FPH), Philippines will always be in need of power/electricity providers (despite its already competitive state). This may also be envisioned in the Department of Energy’s outlook.