The Aboitiz Power Corporation has confirmed that it will concentrate on other renewable energy technologies.
Emmanuel Rubio, president and chief executive officer of Aboitiz Power, said that this decision is their intent moving forward, as they are still interested in selling the company’s power plant assets.
Rubio remarked that they are presently exploring other options for the intended sale of the 8.8-megawatt (MW) biomass power plant assets of Aboitiz Power in Lian, Batangas.
Through a text message, the head of the holding company engaged in power distribution, generation, and retail electricity services said that their agreement with Astoca Incorporated to liquidate the Aseagas assets has already lapsed.
Rubio furthered that, as their year-end target expired, they are mulling on other alternatives to sell the power plant assets because they still have no takers at this point.
According to the report posted online by The Philippine Star, an English-language print and digital newspaper in the Philippines, the Aboitiz Power chief pointed out that they are currently discussing the matter with interested groups.
In May 2018, the company announced its plant to sell the province-based biomass power facility.
The company hired Astoca last year to conduct the sales of the power plant assets following its termination to operate the facility.
Astoca is short for “assets to cash”, and it is a major valuation advisory and industrial asset disposal firm in Asia.
In the second quarter of 2017, the 8.8-MW biomass plant, which is the first biomass project of Aboitiz Power, was supposed to begin commercial operations.
The power facility is under Aseagas Corporation, a wholly-owned subsidiary of Aboitiz Power, via Aboitiz Renewables Incorporated, its holding company for investments in the renewable energy space.
Nevertheless, Aseagas permanently stopped the operations of the facility in January 2018, following the plant previously being placed on an extended shutdown towards the culmination of 2017 because of the dearth of feedstock.
The total value impacted as an effect of the closure is approximately P3.7 billion, representing Aseagas’s invested equity of P3.45 billion, as well as the firm’s estimated remaining obligations of roughly P250 million.
It has set the deadline of the end of 2019 to unload its biomass power plant assets.
Several companies have expressed their interest in these assets, though, at this point, nothing has materialized from the sale.
Aboitiz Power (PSE:AP) closed on February 14, 2020 at P32 per share, down by 0.40 or 1.23 percent.
With a value reaching P29,869,015.00, the 52-week high of Aboitiz Power is at P40.40, while its 52-week low is at P31.65.
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