Aboitiz Power Corp. on Wednesday said it does not intend to delist from the Philippine Stock Exchange (PSE) after it repurchased over 11 million shares as part of its buyback program.
“Even with this stock buyback program, there is no intention to delist from the PSE, but merely to reward our existing shareholders with a larger share of a brighter future,” the company said in a statement.
As of close of trading on September 19, the power firm has purchased 11,407,500 of its own shares. It said that the buyback program was initiated as an opportunity to repurchase shares, saying “the current share price range does not reflect the intrinsic value of the company and its future business prospects.”
The power firm is aware that the purchases may reduce its public ownership level but despite its potential removal from the PSE index, AboitizPower said it “continues to believe its fundamentals remain intact and that this program will create further shareholder value.”
Based on previous disclosures, AboitizPower bought 1,557,500 shares last September 15, 950,000 shares on September 18, and 8.9 million shares last September 19.
AboitizPower’s current public ownership levels exceed the 10 percent minimum public ownership level required for it to remain listed in the PSE. Based on computation, its current market float is around 19.9 percent.
The company is not certain if it would continue to repurchase more shares, saying this decision remains at the discretion of management.
AboitizPower is a leading energy provider that accounts for one out of every 5 megawatts (MW) of installed capacity in the Philippines. It continues its growth trajectory by developing a portfolio of 9,200 MW in the next 10 years to support the delivery of the country’s national energy plans.
Its net income in 2022 reached P27.5 billion, 32 percent higher than the previous year. Growth continued in the first half of 2023, as the company’s net income after tax (NIAT) stood at P17.8 billion, 79 percent higher than in the same period last year.
“With a pipeline of about 1,000 MW of new renewable energy capacity, we are well on our way to contribute an additional 3,700 MW of clean electricity,” said AboitizPower CEO Emmanuel Rubio.
“With our strong track record of NIAT performance, the ability to deliver both renewable and thermal power generation projects, and reliable growth from our distribution utilities, we are in a good position to create long-term shareholder value.”
The company is a producer of renewable energy, with several hydroelectric, geothermal, and solar power generation facilities. It also has thermal power plants in its generation portfolio to support the country’s baseload and peak energy demands.
AboitizPower also owns distribution utilities that operate in high-growth areas in Luzon, Visayas, and Mindanao, including the country’s second and third-largest private utilities.