AEV posts P7.2-billion net income in 3rd quarter

ABOITIZ Equity Ventures, Inc. (AEV) posted a consolidated third-quarter net income of P7.2 billion, higher by 28% from a year ago in part as the diversified holding company recorded one-off foreign exchange gains to reverse losses in the same period last year.

In a disclosure to the stock exchange, AEV placed the forex gains at P60 million, from last year’s non-recurring losses of P720 million, consisting of net unrealized foreign exchange losses on the restatement of consolidated dollar-denominated debts. It also cited money market placements and pre-termination costs on the refinancing of a subsidiary’s debt as among the oneoff items.

Excluding the one-time gains, AEV’s core net income during the quarter was higher by 13% at P7.2 billion.

Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) rose by 14% to P17.6 billion from P15.4 billion recorded during the same period last year.

For the nine months to September, net income reached P17.3 billion, up 9% from P15.9 billion previously, as the firm trimmed its non-recurring forex losses to P407 million from P1.2 billion a year ago. These items represented AEV’s net unrealized foreign exchange losses and pretermination costs on debt refinancing.

Core net income for the ninemonth period hit P17.7 billion, up 4% from P17.1 billion a year ago. Consolidated EBITDA at P45.5 billion was 10% higher than the P41.4 billion recorded in the same period last year.

Among AEV’s strategic businesses, the power unit accounted for 72% of the total income contributions, followed by financial services with 17%, food with 8%, real estate with 2% and infrastructure with 1%.

ABOITIZPOWER

Aboitiz Power Corp. Chief Operating Officer Emmanuel V. Rubio said the subsidiary’s “strong” financial showing as of September “was driven by the continuously increasing demand for reliable, affordable, and sustainable power supply.”

AboitizPower’s income contribution to AEV rose by 6% to P12.8 billion from P12.1 billion for the nine-month period.

For the third quarter, the energy company posted a net income of P7.6 billion, 25% higher than the same period in 2017. This brought its nine-month net income to P16.7 billion, up 6% from a year ago.

Among AboitizPower’s business segments, power generation and retail supply contributed P15.3 billion, up 4%, and accounted for 82% of its contribution to the parent firm.

Consolidated EBITDA rose by 11% to P33 billion primarily due to income contribution of Pagbilao Energy Corp. and Hedcor Bukidnon, Inc. Capacity sold during the review period was almost flat at 3,162 megawatts (MW) from 3,158 MW.

The power distribution business accounted for 18% of the income contributions from AboitizPower’s business segments and recorded an income share of P3.3 billion, which was higher by 8% year on year.