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ABOITIZ Equity Ventures Inc. (AEV) announced on Tuesday that its
power business drove the group’s first-quarter profit higher.
In a disclosure to the Philippine Stock
Exchange, AEV said the group’s net income was up 9 percent to
P1.18 billion in the first three months this year, translating to
earnings per share of P0.21 for the period.
Aboitiz Power Corp. (AP) contributed about 67
percent of the total income, followed by the banking business at 21
percent. The food business made up 14 percent of the group’s
income whereas the transport unit turned in negative results.
AP’s income contribution for the quarter
jumped 83 percent to P761 million year on year on the back of a
41-percent growth in consolidated revenue. Its net earnings
contribution jumped by 429 percent to P481 million. The improved
performance can be traced to a number of generating plants the
company acquired, including the 360-megawatt Magat hydroelectric
facility.
AEV’s banking business however suffered a
61-percent drop in profits to P232 million due to the base effect of
a large trading gain Union Bank of the Philippines realized last
year. Thrift unit City Savings Bank contributed earnings of P10
million, 39 percent lower than last year due to a drop in net
interest margins and increased manpower costs.
The group’s transport business was still in
the red, registering P22 million in losses despite the 17-percent
revenue growth as it sold old vessels. The improvement in the top
line was mainly due to an improving freight business and growing
supply chain management services.
Pilmico Foods Corp. registered a 20-percent
growth in income contribution to P156 million as revenues of its
flour business grew by 28 percent due to higher selling prices.
Earnings from its wholly-owned subsidiary, Fil-Am Foods Inc. also
surged 125 percent on the back of strong volume sales for its swine
business and favorable prices for both swine and feeds.
At end-March, AEV’s total assets were 8
percent lower at P60.4 billion from the end-2007 level. Cash and
cash equivalents were P6.6 billion lower at P18.6 billion. The
group’s liabilities decreased by 8 percent to P17 billion, while
equity attributable to equity holders of the parent dropped by 8
percent to P35.1 billion.
The group’s current ratio stood at 2, lower
than the 2.5 at year-end 2007, while its net debt-to-equity ratio
was at minus 0.05, versus minus 0.15 previously.
-- Likha C. Cuevas-Miel
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