• AEV H1 net income rises 34% to P10.5B

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    ABOITIZ Equity Ventures Inc. (AEV) on Thursday reported 34 percent growth in net income for the first half of the year from a year ago driven by its power and banking businesses.

    In a disclosure to the Philippine Stock Exchange, the holding and investment firm of the Aboitiz Group reported a consolidated net income of P10.5 billion in the first half from last year’s P7.8 billion, translating to P1.89 earnings per share.

    AEV said it recorded a non-recurring gain of P100 million (versus last year’s one-time loss of P100 million) as a result of the power unit’s gain on step acquisition of East Asia Utilities Corporation.

    Adjusting for these one-offs, AEV’s core net income in the period amounted to P10.4 billion, 31 percent higher year-on-year.

    “Our two-pronged strategy of organic growth in our existing businesses and diversifying our income streams from our fifth leg—infrastructure-related businesses—is on track and paying off. We are very pleased with the strong contribution of our cement business and the prospects of infrastructure moving forward,” said Erramon Aboitiz, AEV’s president and chief executive officer.

    Aboitiz Power Corp (AboitizPower) contributed 67.1 percent or P7.7 billion to AEV’s income in the first half, or 24 percent higher than its income contribution last year of P6.2 billion.

    Adjusted for one-off items, AboitizPower’s core net income for the first half was P9.8 billion, up by 20 percent.

    AboitizPower’s attributable capacity sales rose by 13 percent to 2,020 megawatts in the first six months from 1,795 MW in the same period last year.

    Therma South’s new capacity contribution primarily accounts for the increase in capacity, while Magat Dam’s better water inflow, particularly in June, further augmented capacity sales.

    Banking and financial arm Union Bank of the Philippines and its subsidiaries generated P1.9 billion of income contribution to AEV, up 121 percent from the previous year, on the strong performance of its core lending business.

    AEV’s non-listed food subsidiaries Pilmico Foods Corp., Pilmico Animal Nutrition Corp., and Pilmico International Pte Limited, on the other hand, contributed P885 million to AEV’s income in the period, relatively flat year-on-year.

    Feeds Philippines’ bottom line improved 36 percent to P436 million, propelled by strong volume and lower raw material prices, while Flour’s net income grew 3 percent to P366 million on increased volume and better by-product performance.

    Feeds Vietnam and Farms both reported a drop in net income contributions due to lower prices. Feeds Vietnam saw net profit fall 68 percent to P24 million, while Farms posted a 55 percent decrease in first half net income to P59 million.

    Meanwhile, Aboitiz Land Inc.’s (AboitizLand) income contribution to AEV shrank by 60 percent to P85 million as its revenues declined 16 percent year-on-year to P1 billion.

    AEV’s infrastructure unit, newly delisted Republic Cement and Building Materials, Inc. (RCBM), posted an income contribution to AEV of P869 million for the period. It started contributing mid-September last year.

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