AEV nets P4.9 B in 1st quarter

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MANILA—Aboitiz Equity Ventures Inc. posted a 29-percent year-on-year decline in first quarter net profit to P4.9 billion on lower earnings contribution from the power and banking businesses.

Excluding non-recurring items, AEV’s core net income amounted to P4.4 billion, which was 20 percent lower than the level last year.

For the first quarter, AEV booked a non-recurring income of P470.6 million due to the recognition of a gain amounting to P634 million from the sale of some assets as part of the company’s business rationalization strategy. However, this was partially offset by the foreign exchange loss on the revaluation of consolidated dollar-denominated loans and placements amounting to P163.4 million.

Out of the total earnings contributions, power accounted for 73 percent while the income contribution of the banking, food and property units were 16.6 percent, 7.7 percent, and 2.8 percent, respectively.

Flagship Aboitiz Power Corp. posted a 9 percent decline in first quarter profit to P3.2 billion. The power generation business declined by 10 percent due to the higher fuel cost brought about by the implementation of the geothermal resource sales contract (GRSC) for the Tiwi-Makban. The company said the generation group’s income contribution for the quarter could have been higher if not for the expiration of the Pagbilao plant’s income tax holiday.