Aboitiz reports 8% decline in net income

By: Doris C. Dumlao - 11 years ago

City Savings Bank Inc. CONTRIBUTED PHOTO/www.aboitiz.com

MANILA, Philippines—Aboitiz Equity Ventures reported Wednesday it had a net income of P16.6 billion during the first nine months of the year, or a decline of 8 percent from a year ago due to foreign-exchange losses and a non-recurring loss booked by its flagship power unit from the pre-termination of a loan.

Adjusting for these one-off items, AEV’s core nine-month net income amounted to P16.4 billion, which is 7-percent lower than last year due to the decline in the selling price for power.

For the third quarter alone, AEV’s consolidated net income declined by 25 percent year-on-year to P4.6 billion, due likewise due to the revaluation of US-dollar-denominated liabilities and placements which resulted in a non-recurring loss albeit partially offset by the reversal of funds earlier set aside as loss provision relating to some equity transactions. Adjusting for these, AEV closed the quarter with a core net income of P4.7 billion, likewise down by 25 percent year-on-year.

For the nine-month period, AEV’s earnings translated to P3 in earnings per share.

On the other hand, AEV booked gains of P1.3 billion from the sale of City Savings Bank Inc. to banking arm Union Bank of the Philippines.

Overall, power accounted for 71 percent, followed by the banking, food and real estate units with income contribution of 22 percent, 6 percent, and 1 percent, respectively.

Flagship Aboitiz Power Corp. registered an income contribution of P11 billion for the nine-month period, 22 percent lower year-on-year. When adjusted for non- recurring items, this unit recorded a 12 percent year-on-year decrease in its earnings share, to P12.1 billion.

The group’s average price for its power decreased by 12 percent year-on-year during the first nine months due to the decline in both the average selling price of electricity sold to the spot market (-23 percent) and average selling price under bilateral contracts (-10 percent).

This was so even as attributable net generation for the period grew by 4 percent year-on-year to 8,245 GWh due to the increase in demand brought about by the hotter weather during the summer months.