AEV net earnings slide to ₱15.7 B

Aboitiz Equity Ventures, Inc. reported that its net income for the first nine months of 2019 dipped 9 percent to ₱15.7 billion from the ₱17.3 billion posted during the same period last year due to lower power earnings.

In an a disclosure, AEV said it recognized non-recurring losses of ₱155 million, lower than the previous year’s ₱407 million, representing net foreign exchange and derivative losses.

Without these one-off losses, AEV’s core net income for the first nine months of 2019 was ₱15.9 billion, 10 percent lower from ₱17.7 billion yearon-year (YoY).

“Despite challenges in our power business, better operating performance in our non-power businesses provided resilience to our investment portfolio. As we fund our growth projects, we look to further broaden and strengthen our diversification in the Philippines and overseas,” said AEV President and Chief Executive Officer Erramon I. Aboitiz.

AboitizPower’s core net income for the first three quarters of 2019 was ₱13.7 billion, a 26 percent decrease YoY as Union Bank of the Philippines’ (UnionBank) income contribution to AEV for the first nine months of 2019 increased by 41 percent to ₱4.2 billion.

Its non-listed food subsidiaries’ income contribution fell 31 percent to ₱1 billion due to while Republic Cement & Building Materials, Inc.’s income contribution to AEV surged 186 percent to P631 million.

Aboitiz Land, Inc. (AboitizLand) reported a 106 percent jump in consolidated net income to ₱829 million due to fair valuation gains on investment properties.