ABOITIZ Equity Ventures Inc. (AEV) reported a consolidated net income of P17.1 billion for the first nine months of the year, up 44 percent from P11.9 billion a year earlier on the back of strong its banking, power and infrastructure business operations.
Of the total, 63 percent profit came from Aboitiz Power Corp., followed by Union Bank of the Philippines (22 percent), Pilmico Foods Corp. (7 percent), Republic Cement and Building Materials Inc. (7 percent), and Aboitiz Land Inc. (1 percent).
“Our efforts to pursue organic growth, invest in new assets, and strengthen operational capabilities have resulted in strong profit contributions from our power, banking and financial services, and infrastructure business units. As we ride on the tailwind that a growing economy brings, we will continue to build a sustainable, responsible, and industry-leading enterprise,” Erramon I. Aboitiz, AEV president and chief executive officer, said.
AboitizPower saw a 24-percent increase in net income at P15.1 billion from P12.2 billion on the back of contributions from newly completed projects and the continuous growth in existing power generation operations.
UnionBank’s net income expanded by more than two times at P8.2 billion from P3 billion on robust growth in net interest income and fees, coupled with the profits from the sale of securities.
Republic Cement posted P1.3 billion in net contributions despite contributing to AEV only in mid-September. The group cited the rapid growth in this segment given the various infrastructure projects undertaken nationwide.
Pilmico contributed P1.4 billion, a 1-percent decline.
The food unit said the flour and farms segments weighed on the strong feeds segment due to lower selling prices. The feeds business posted an 18-percent increase in net income at P675 million.
AboitizLand noted a 40-percentdrop in net income at P149 million from P249 million “due to the increase in operating expenses as the company continued to grow its team to become a national real estate player.”
Last week, AEV said it is allotting more than P50 billion to capital expenditures next year.
It is scouting for business opportunities in geothermal and hydro power, infrastructure and food sectors within Southeast Asia, particularly Indonesia, Vietnam and Myanmar.