AEV net income rises 3% to billion in 2018
Aboitiz Equity Ventures, Inc. (AEV) posted a 3 percent increase in its net income to 122.2 billion for 2018 from 121.6 billion in 2017, according to its disclosure to the Philippine Stock Exchange.
The firm said its power business unit (BU) remained its biggest income contributor, accounting for 73 percent while its financial services, food, real estate, and infrastructure BUs pitched in 16 percent, 7 percent, 3 percent, and 1 percent, respectively.
“We remain confident about the long-term prospects of our businesses in fueling our country’s economic growth, which, in return, generates greater demand for our products and services,” said AEV President and Chief Executive Officer Erramon I. Aboitiz.
Meanwhile, AEV’s core net income totaled 123.1 billion, 3 percent lower than the 123.9 billion recorded in 2017.
AEV also recorded consolidated earnings before interest, taxes, depreciation, and amortization amounting to 160.7 billion last year, up 6.5 percent from 2017.
“From investing to meet infrastructure demand to providing innovative solutions to empower small businesses, and through our new multi-country platform, we leverage our capabilities to drive change for a better world by advancing business and communities,” Aboitiz said.
UnionBank recorded a net income of 17.3 billion in 2018, down 13 percent from the 18.4 billion earned the previous year.
AboitizPower realized 121.7 billion in net income in 2018, 6 percent higher compared to 2017 .
The publicly listed power firm noted that its net income should have actually been higher at 123.8 billion, had it not been for its booked nonrecurring losses of 12.1 billion.
The company’s consolidated earnings before interest, tax, depreciation and amortization (EBITDA) also climbed by 8.0-percent to 151.5 billion from 2017 level of 147.7 billion.
As emphasized by Aboitiz Power Chief Operating Officer Emmanuel V. Rubio, “we were able to sustain our growth with the entry of new capacities from our baseload power plant as well as our hydro plant in Manolo Fortich, Bukidnon.”
Pilmico reported a net income of 11.6 billion for 2018, an 8 percent decrease from the 11.7 billion recorded in 2017, due mostly to declines from Feeds Philippines which suffered from higher raw materials costs and from Farms which incurred lower asset revaluation gains.
Meanwhile, Flour business segment’s net income increased by 52 percent to 1299 million, on the back of better commodity and foreign exchange positioning.
AboitizLand reported net income of 1645 million in 2018, 13 percent lower than the 1744 million recorded in 2017 due to the absence of fair valuation gains on investment properties in 2018 despite enjoying higher revenues.
Republic Cement’s income contribution to AEV in 2018 amounted to 1213 million, 68 percent lower than the 1671 million posted in 2017, due to significantly higher fuel and power costs, which offset the improvement in prices due to government infrastructure spending and stable private sector demand.