AEV profit drops 17% to P11.9 B

Aboitiz Equity Ventures, the Cebubased conglomerate, posted a 17 percent decline in consolidated net income in the first nine months of the year to P11.9 billion from P14.3 billion a year ago, dragged partly by non-recurring losses as a result of the revaluation of dollardenominated liabilities.

AEV president and chief executive officer Erramon Aboitiz said despite the slide in profits, the company’s strategy growth plans remain intact.

“De spi t e the slight slide in profits, our strategic growth plans – whether at home or abroad – remain intact. Our recent foray into infrastructure through LRI, for instance, represents an excellent opportunity to be involved in nation building and participate in the robust growth expectations in that sector,” he said.

In a disclosure to the Philippine Stock Exchange (PSE), the Aboitiz family’s holding company said its power business accounted for 75 percent of earnings, followed by its banking arm (12 percent), food business ( 11 percent) and land unit (two percent).

“During the ninemonth period, AEV incurred a non-recurring loss of P623.2 million (versus last year’s gain of P379.6 million), which resulted from the revaluation of the Power SBU’s consolidated dollar-denominated liabilities and placements. Adjusting for these one-off’s, AEV’s core net income amounted to P12.5 billion, which was 10 percent lower than last year,” AEV said.

Power accounted for 75 percent of the total earnings contributions, followed by the Banking and Financial Services, Food and Land Strategic Business Units (SBUs) with income contributions of 12 percent, 11 percent, and two percent, respectively.

For the power business, AEV’s AboitizPower reported an income contribution of P9.4 billion during the period, seven percent lower than the previous year’s P10.1 billion.

Its attributable net generation rose by nine percent yearon-year to 9,161 gwh from from 8,395 gwh as electricity sold through bilateral contracts — 90 percent of total energy sold during the period — expanded by 16 percent to 8,254 gwh.

On the other hand, spot market sales decreased by 28 percent to 907 gwh from 1,266 gwh.