Aboitiz Equity Q1 earnings up 3% at P4.8B

By Jordeene Sheex Lagare – May 4, 2018
from The Manila Times

ABOITIZ Equity Ventures Inc. (AEV) said its consolidated net income rose 3 percent to P4.8 billion in the first three months of the year against P4.7 billion a year ago on lower foreign exchange losses.

The listed conglomerate said on Thursday it recorded non-recurring losses of P424 million in the first quarter versus losses of P442 million in 2017, representing net unrealized foreign exchange losses recognized on the restatement of consolidated dollar-denominated debts and money market placements.

Without one-off losses, AEV’s core net income increased 3 percent to P5.2 billion during the period from P5.1 billion the previous year.

Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) reached P13.9 billion, 9 percent higher than the previous year’s P12.7 billion.

Its power business accounted for 64 percent of the total income contributions among its strategic business units although the segment’s net income contribution slid.

AboitizPower Corp.’s consolidated net income decreased 9 percent to P4 billion from P4.4 billion due to forex losses.

Without the one-off adjustments, AboitizPower’s core net income for the quarter amounted to P5.2 billion, 4 percent higher year-over-year.

“Despite the one-off adjustments we have to incur in the quarter, we continue to see modest growth of the group in both our generation and distribution business. On a positive note, we continue to see improvements in plant reliability and availability which has resulted to significant financial contributions. Our DU (distribution utility) business also continues to grow thanks to growing regional economies,” AboitizPower President and Chief Operating Officer Antonio Moraza said in a statement.

Union Bank of the Philippines posted a net income of P1.4 billion from P1.1 billion previously on higher revenues. Its income contribution to AEV surged 32 percent.

Pilmico Foods Corporation and its units recorded a net income of P264 million for the quarter, 10 percent lower than the previous year’s P292 million, mostly because of the higher cost of raw materials and operating expenses.

Aboitiz Land, Inc. and other subsidiaries booked a net income of P59 million, 18 percent lower than the P72 million of the prior year, due to increased borrowing expenses for the funding of developments.

Republic Cement and Building Materials, Inc.’s net income declined 59.4 percent to P82 million, mainly because of energy input costs that were higher than a year ago. Its income contribution slumped 140 percent.

AEV is the public holding company of the Aboitiz Group with major investments in power, banking and financial services, food, infrastructure, and land.