LISTED conglomerate Aboitiz Equity Ventures Inc. (AEV) posted consolidated net income of P22.5 billion in 2016, up 27 percent from the previous year, on the strong performance of its various business segments.
AEV said 65 percent of the profits came from power unit Aboitiz Power Corp., followed by banking arm Union Bank of the Philippines (21 percent), food unit Pilmico Foods Corp. (7 percent), infrastructure and cement vehicle Republic Cement and Building Materials Inc. (7 percent), and property unit Aboitiz Land Inc. (1 percent).
Excluding a P347-million one-time loss in 2016 due to the revaluation of dollar-denominated assets and liabilities of its power unit, AEV’s core net income in 2016 stood at P22.8 billion, up by 25 percent from the previous year.
“The gains we recorded over 2016 affirm the soundness of our business strategy of creating a diversified income stream,” Erramon I. Aboitiz, AEV president and chief executive officer, said.
“This year, the group will take even more deliberate steps in bringing progress to communities in line with our strategic objectives,” he added.
Among its business units, AboitizPower’s income improved by 14 percent to P20 billion last year from 2015’s P17.6 billion, largely driven by Therma South’s new contribution.
UnionBank’s net income nearly doubled to P10.1 billion from P5.3 billion on trading gains and higher recurring revenues while Pilmico’s net income inched up by 1 percent to P1.7 billion as lower prevailing prices offset strong volume growth.
Meanwhile, Republic Cement posted a 700 percent surge in income contribution to P1.6 billion from P194 million previously, due to higher selling prices and lower costs and also because the company only started contributing in mid-September 2015.
In the property business, AboitizLand’s net income declined by 65 percent to P188 million as revenues fell 7 percent to P2.4 billion, due to delays in revenue recognition and higher operating expenses.
AEV has programmed more than P50 billion for capital spending this year to fund partnership or acquisition opportunities in the power, infrastructure and food sectors within the Southeast Asian region, particularly in Indonesia, Vietnam and Myanmar.
As part of its expansion plans, AboitizLand is aiming to acquire several properties in the provinces for mid-income housing development while AboitizPower targets opening two plants each year toward 2020 and beyond.