AEV profit down 18% in H1

Conglomerate Aboitiz Equity Ventures Inc. posted an 18-percent year-on-year decline in first semester net profit to P7.8 billion due to lower contributions from its power and banking units.

Power accounted for 75.9 percent of earnings, followed by the banking, food and property businesses with income contributions of 10.6 percent, 10.9 percent, and 2.6 percent, respectively.

There was a non-recurring loss of P109.7 million—versus last year’s one-time gain of P785.2 million—which brought about by the revaluation of the power unit’s consolidated dollar-denominated liabilities and placements. Adjusting for these one-offs, AEV’s core net income hit P7.9 billion, 9 percent lower year-on-year.

Flagship unit Aboitiz Power Corp. ended the semester with income contribution of P6.2 billion, 9 percent lower year-on-year, as the average price of its energy sales decreased by 26 percent. This was mainly due to the 28-percent drop in the average selling price of the group’s bilateral sales as fuel costs continued to decline. The average rate for ancillary services was also down by 10 percent.

Income contribution from Union Bank of the Philippines was down 42 percent year-on-year to P866.4 million. This was due to trading losses of P300 million, a reversal of almost P1 billion in trading gains a year ago.

The bank grew its loan book in the first semester by 14 percent year-on-year to P158.6 billion.

AEV’s non-listed food subsidiary, Pilmico Foods Corp., posted a 37- percent increase in its first semester income contribution to P885.2 million. Property arm Aboitiz Land Inc. reported an 18-percent increase in income contribution to P213.1 million. Real estate revenue went up by 48 percent year-on-year to P1.2 billion.