Power unit pulls down AEV income by 12%

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Conglomerate Aboitiz Equity Ventures Inc. (AEV) posted a 12 percent drop in net profit in 2013 as its power unit, which usually generates the bulk of its profits, reported lower earnings.

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In its financial report, the listed conglomerate said its consolidated net income for 2013 went down by 12 percent to P21 billion from the P23.97 billion recorded in 2012.

AEV derives 72 percent of its income from its power business, followed by banking (21 percent), food (6 percent), and real estate (1 percent).

The conglomerate also said it booked a non-recurring loss of P1.4 billion from the revaluation of dollar-denominated items.

“For the period ending December, the revaluation of consolidated dollar-denominated liabilities and placements resulted in a non-recurring loss of P1.4 billion,” it explained.

“On the other hand, a one-time gain was also recognized by the power business units primarily due to the step acquisition of a subsidiary. AEV’s share in this amounted to P161.4 million,” AEV added.

The conglomerate also booked gains of P1.3 billion from the sale of City Savings Bank Inc.

During the fourth quarter of last year, AEV realized a consolidated net income of P4.5 billion, down 24 percent compared to the fourth quarter of 2012.

Erramon Aboitiz, AEV president and chief executive officer, said the 12-percent drop in profit “does not diminish the overall positive performance of our business units.”

AEV’s power arm Aboitiz Power Corp. ended last year with an income contribution of P14.2 billion, 24 percent lower than the P18.8 billion recorded in 2012. AEV owns about 70 percent of Aboitiz Power.

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