Aboitiz Equity’s bottom line dented by forex losses

FOREIGN EXCHANGE losses weighed on the earnings of Aboitiz Equity Ventures, Inc. (AEV) in the third quarter, according to a disclosure to the stock exchange on Wednesday.

The holding firm of the Aboitiz family delivered a consolidated net income of P5.6 billion in the July to September period, down 14% from P6.6 billion in the same period last year.

AEV widened its non-recurring losses to P720 million from P117 million a year ago stemming from the recognition of forex losses upon revaluation of dollar-denominated liabilities and pre-termination costs on the refinancing of a subsidiary’s debt.

Without the one-off losses, the quarterly core net profit was 5% lower year on year to P6.4 billion from P6.7 billion.

As a result, AEV’s net income from January to September slid to P15.9 billion, down 7% from P17.1 billion a year ago, as the strength of its power business failed to offset the impact of forex losses and the weakness of its banking, food and infrastructure units.

Excluding extraordinary items, core net earnings remained almost flat at P17.1 billion. —