Marking a New Era for AboitizPower

Amidst its industry-leading energy transition, Aboitiz Power Corporation is experiencing a transition of its own internally. President and CEO Emmanuel ”Manny” Rubio recently announced his retirement, with him officially leaving the post by the end of June later this year.

As the first chief of the firm not from the Aboitiz family, Rubio would witness the company's early transformation, as well as its key milestones over the past four years. Rubio was vital in fulfilling AboitizPower’s massive transformative purpose.

In 2018, the nation, through the Department of Energy, introduced a Philippine target of having 35-percent RE in its energy mix share by 2030 and a 50-percent RE share by 2040. Rubio took on his current role with AboitizPower (AP) in January 2020. The following year, AboitizPower established a comprehensive dedicated energy plan that aligned with the Philippines' own. The Aboitiz Great Transformation would be announced in 2022, when the Aboitiz Group vowed to dedicate itself to becoming a techglomerate. Since then, it has leaned heavily on innovative practices to accelerate the transformation.

As AboitizPower’s President and Chief Executive Officer, Rubio has been instrumental in AP's successes over the recent years. With him at the helm, he has navigated the uncertainties of the industry. He diversified its energy sources, adding a battery energy storage arm; more renewable energy sources like solar, wind, and geothermal; and recent investments in liquefied natural gas (LNG).

During his four-year term, AP has even explored future technologies in the energy sector. Hence, AP's research about nuclear, hydrogen, and ammonia innovations. His term has been marked by the growth of AP's retail electricity business, too (AP has gained leadership in terms of market share since 2023). Rubio has taken care of all these, and has also fostered the growth and modernization of the firm's distribution utilities segment.

"As a company, AP has made it a point to ensure that it remains relevant by contributing to the energy transition, providing energy sources that will help with the progress of the Philippine economy," Rubio notes.

He's overseen some of the business's biggest projects and collaborations. Two years ago, for instance, Aboitiz Renewables, Inc. worked with global renewable energy company Mainstream Renewable Power for a 90-MW onshore wind power project in Libmanan, Camarines Sur. Meanwhile, the new binary geothermal plant in Tiwi, Albay is proof of AP's focus on modern renewable power generation plants.

More recently, AboitizPower, Meralco PowerGen Corp., and San Miguel Global Power Holdings Corp. invested $3.3 billion (P185 billion) in the Philippines’ first integrated LNG facility in Batangas. The Laoag Solar project (which has a peak capacity of 159 MW) and the 17-MW Tiwi Binary Geothermal Power Plant became operational in April, as well.

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Under Rubio's watch, AboitizPower has shown a strong upward trajectory over the past three years. In 2023, AboitizPower had quite the financial showing.

?In 2023, AboitizPower logged a P33.1-billion net income, based on a disclosure to the Philippine Stock Exchange. It's a 27 percent higher figure compared to numbers last year. The listed energy generation and distribution firm ended up finishing with a core net income of P32 billion, up 29 percent from the year prior.

There was also a recorded increase in energy sold, at 35,372 gigawatt-hours, which is a 17-percent increase from 2022. AboitizPower’s beneficial EBITDA, on the other hand, would even grow to P64.6 billion in 2023. This is mostly because of strategic investments and operational excellence in its portfolio. In the first quarter of 2024, AboitizPower would also record a 4-percent higher growth than the same quarter last year.

"It's critical that each leader understands and is committed to AP's purpose. That way, they know their role and they know how to contribute to fulfilling our obligations," Rubio says of the role of AP’s leadership. "It is imperative that each leader knows the value they can add. With this, they can better help the organization move forward through any obstacles."

Building on Past Successes

As Rubio departs the company, his successor looks to steer the company toward new heights. In his place will be Danel Aboitiz, AP’s Chief Commercial and Stakeholder Engagement Officer who will take charge on July 1.

Now, the fifth-generation Aboitiz is tasked with meeting the company's greater expectations in the foreseeable future. ?AboitizPower looks to reach 3,700 MW of new RE generation capacity by 2030, growing each year since 2021. The new chief will now spearhead this, aiming to meet and even exceed his predecessor's numbers. Renewable projects should contribute to this and could effectively increase AP's RE capacity to 4,600 MW by 2030.

The Philippines' current growth trajectory, after all, requires an additional 600 megawatts (MW) to 700 MW of new power generation capacity per year over the next decade and beyond. This also entails the diversification of power assets, which should improve energy security and alleviate energy poverty.

Rubio welcomes Aboitiz’s appointment, of course. “I’m excited to pass the baton to Danel Aboitiz, whom I know is ready to take on the reins and is more than deserving of this position," Rubio says. "We have planned a transition that ensures a smooth leadership handover, allowing the organization to continue its strategic focus. I am confident that AboitizPower will reach even greater heights under Danel's leadership."

In the end, Rubio is grateful for the company and his team for their shared commitment. During his stay, he's consistently preached the importance of nurturing employee culture. "AP’s greatest resource is its people,” he tells Esquire Philippines. "Companies are not just made up of nuts and bolts. It is the people who make a difference. They are the ones who take positive steps toward delivering AP's purpose every day.

“Danel, the management team, and all our 1AP team members are very well prepared,” he continues. “They are dedicated to the greater growth of the company. AP will continue to work with other people: our stakeholders in the industry, our customers, and even our host communities. Our work will always be geared toward delivering the benefits of energy to Filipinos’ everyday lives."