AEV group 9-month earnings down 16%

Aboitiz Equity Ventures Inc. (AEV) reported a 16 percent decrease in its net income to ₱18 billion for the first nine months of 2023 compared as against ₱21. 4 billion in the same period in 2022.

In a disclosure to the Philippine Stock Exchange (PSE), the firm attributed the decline to its nonrecurring gains, which plummeted by 86 percent to ₱738 million this year from ₱5.3 billion last year. The company's core net income for the first nine months of this year was ₱17.3 billion, without the one-off gains.

But the firm’s consolidated assets for this year’s nine-month period inched up a modest three percent to ₱830.2 billion from ₱762.5 billion. Cash and cash equivalents were also 11 percent higher at ₱113.1 billion this year from ₱101.5 billion last year.

Among AEV'S Strategic Business Units (SBUS), its power segment accounted for 70 percent of the firm's total income, with Aboitiz Power Corporation's (Aboitizpower) income contribution for the first nine months of 2023 amounting to ₱13.9 billion, 37 percent higher than ₱10.1 billion in 2022.

On its own, Aboitizpower's earnings for the first nine-month period was 37 percent higher at ₱26. 7 billion this year than ₱19. 5 billion last year.

Its consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) for the generation and retail electricity supply businesses grew 20 percent to ₱46.7 billion this year from ₱39 billion last year due to "higher availability and fresh contributions from Gnpower Dinginin Ltd. Co. Philippines.”

Meanwhile, its consolidated EBITDA for the distribution business rose 51 percent at ₱7.2 billion this year from ₱4.8 billion in 2022.

Energy sales from residential customers inched up by seven percent, along with commercial and industrial customers by six percent, attributed to “recoveries in demand in the areas affected by Typhoon Odette and resurgence of energy sales back to prepandemic level.” The Financial Services accounted for 20 percent of AEV’S total income, with Union Bank of the Philippines (Unionbank) contributions reduced by 22 percent to ₱4 billion this year from ₱5.1 billion last year.

The infrastructure and real estate segments contributed four percent each to AEV’S income. Aboitiz Infracapital Inc. (AIC) saw a 17 percent growth in contributions to ₱1.4 billion this year from ₱1.2 billion last year due to “robust lot sales of economic estates, and incremental contributions from water and airport BUS.

The firm’s non-listed real estate businesses, Aboitiz Land Inc. (Aboitizland) and its subsidiaries, reported a five percent growth in consolidated net income of ₱716 million in the first nine months of 2023 from ₱684 million in 2022 due to lower operating and project costs and gains from sale of properties.