MANILA, Philippines—Aboitiz Equity Ventures Inc. increased its net profit last year by 13 percent to P23.9 billion on higher earnings from its power, banking and food-related businesses.
Excluding non-recurring items, AEV’s core earnings for 2012 totalled P23.4 billion, up by 12 percent. One-time items were booked from the following: A gain of P541 million from its power business, including a one-time gain from the revaluation of dollar-denominated liabilities and placements; non-recurring net loss brought about by the higher fuel cost booked by its geothermal plants due to reimbursements made to its steam supplier; the downward revenue adjustment of a wholly owned subsidiary as a result of an Energy Regulatory Commission ruling regarding its ancillary services contract; and -the debt prepayment cost incurred at parent level.
The full-year net profit last year translated to P4.33 in earnings per share for AEV. Power continued to account for the lion’s share of earnings at 78 percent while the banking and food units contributed 16 percent and 5 percent, respectively.
For the fourth quarter alone, AEV’s consolidated net income amounted to P5.9 billion, 15 percent higher year-on-year. Adjusting for non-recurring items, AEV closed the quarter with an 8 percent year-on-year growth in core net income to P5.7 billion.
Flagship unit Aboitiz Power Corp. ended the year with an income contribution of P18.8 biliion versus last year’s P16.5 billion. Excluding non-recurring items, the power unit recorded a 13 percent increase in its earnings share to P18.2 billion.
In 2012, the power generation business contributed P17.5 billion in earnings, recording a 12 percent growth due to the higher average selling price (+3 percent) and net generation recorded for the period. Meanwhile, improved sales volumes and margin expansions supported a 19 percent increase in the power distribution group’s income contribution to P2.2 billion.
Income contribution from banking grew by 12 percent to P3.9 billion. Union Bank of the Philippines (UnionBank) ended the period with an earnings contribution of P3.3 billion, up by 14 percent on the back of higher net interest income and hefty trading gains. Non-listed thrift bank unit City Savings Bank, Inc. (CitySavings), contributed earnings of P520 million in 2012, which was lower by 2 percent year-on-year mainly attributed to the bank’s ongoing expansion program which led to a 28 percent increase in operating expenses.
Food unit Pilmico Foods Corp. recorded 5-percent growth in its income contribution for 2012 to P1.3 billion. This was driven by a 6 percent increase in overall sales, with the flour, feeds, and farm divisions all posting an increase in sales volumes. Fourth quarter sales were particularly stronger, growing by 11 percent to P4.2 billion year-on-year.