Aboitiz Equity sees 3% rise in Q3 profit

MANILA, Philippines—Conglomerate Aboitiz Equity Ventures Inc. (AEV) saw its third quarter net profit grow by 3 percent year-on-year to P4.8 billion, aided by improved earnings from its banking business.

In the first nine months of the year, AEV’s consolidated net income dropped by 14 percent year-on-year to P14.3 billion due to the decline in contribution from its flagship power business, as well as sluggish banking earnings for the first semester.

“The drop in our net income does not affect the fundamental value of our businesses. Our future growth plans remain intact as we continue to strengthen our businesses in keeping with the country’s economic growth,” AEV president Erramon Aboitiz said in a press statement Wednesday.

In the third quarter, AEV registered a nonrecurring loss of P406 million due to the revaluation of the power unit’s consolidated dollar-denominated liabilities and placements. Adjusting for these one-offs, AEV closed the quarter with a core net income of P5.2 billion—9 percent higher year-on-year.

Earnings from flagship unit Aboitiz Power Corp. reached P10.1 billion—8 percent lower than that of the same period last year.

During the period, the power unit accounted for 72 percent of total business, followed by the banking, food and real estate units, with income contributions of 17 percent, 7 percent, and 4 percent, respectively.

Union Bank’s income contribution declined by 28 percent year-on-year to P2.4 billion due to sluggish trading gains in the first six months, but its earnings rebounded in the third quarter.

Also, property unit Aboitiz Land Inc. grew income contribution by 247 percent to P565.4 million as revenues breached the P2 billion mark for the first time—almost triple the figure seen in the same period last year.