To our partners and friends at the PSE,
Chairman Jose Pardo,
President & CEO Ramon Monzon,
Our friends in media,
Fellow Aboitiz team members,
Ladies and gentlemen:
Good morning to all of you!
On behalf of the Aboitiz Group, I am very happy to see all of you here to celebrate the 10th listing anniversary of Aboitiz Power Corporation at the Philippine Stock Exchange.
As you all know, Aboitiz has been in the power industry since the early 1900s starting with our investments in distribution utilities Cotabato Light and Davao Light. It is the business that we have grown steadily over the last century, and seen booming and expanding in the past decade.
Ten years ago, we found ourselves at a crossroads and made a strategic decision that was pivotal for the further growth of the Aboitiz Power. The economy was on a roll, the Electric Power Industry Reform Act (EPIRA) and the privatization of Napocor’s assets were gaining momentum, and it was clear that additional power capacity was needed to prevent the massive power shortages of the 1990s from happening again.
We identified the opportunity facing us as a chance of a lifetime.
We thus decided to list AboitizPower in the Philippine Stock Exchange and tap the capital markets to strengthen our capabilities and expand our investments in power.
Our IPO gave us greater muscle to start new projects, seize better opportunities, and build AboitizPower into an integrated power company. The tremendous support from the investing public also gave us the confidence to push forward and transform ourselves into a public company answerable to many more stakeholders.
Over the past 10 years, AboitizPower has grown exponentially. Together with our partners, our generation group’s net sellable capacity has grown from 167 MW in 2006 to just about 4,000 MW when the plants we are building are completed. We commit to pursuing renewable energy, with 32% of our generation portfolio sourced from renewable assets i.e. our geothermal, hydro, and solar power.
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.
Our distribution group has likewise expanded alongside the economies that we serve. We now serve close to a million customers in our franchise areas in Cebu, Davao, Cotabato, and in our enerzones. We deliver reliable power efficiently coupled with the best customer service possible to the communities we serve.
Our IPO price in 2007 was 5.80 pesos per share. Today, at 40 pesos per share, it is approximately 7 times the IPO price; and this is on top of the generous cash dividends we have been giving, which by the way is one of the highest dividen yields among PSE listed companies. The total shareholder return inclsuive of cash dividends translates to a 28 percent total shareholder retun compounded annually for the last 10 years.
We will remain strategic yet disciplined in our approach towards achieving our growth goals, always mindful of our role in nation building. We are inspired by our Group Purpose to drive change of a better world. Advancing business and communities by powering progress is how we will help uplift the lives of millions of Filipinos.
As I end, let me congratulate the PSE, your Board and officers for your continued efforts to strengthen the market structure, its governance and credibility that has no doubt been key in attracting more investors in the Philippine capital markets.
Again, I thank all of you for joining us today as we commemorate AboitizPower’s 10th Anniversary as a public company.