Power-led conglomerate Aboitiz Equity Ventures Inc. grew its first semester net profit by 34 percent year-on-year to P10.5 billion on the back of higher earning contributions from its power and banking businesses.
Flagship unit Aboitiz Power Corp. ended the first half of the year with an income contribution to AEV of P7.7 billion, up 24 percent year-on-year as it unlocked higher profits from power generation and distribution.
Banking arm Union Bank of the Philippines and subsidiaries contributed P1.9 billion, up by 121 percent year-on-year due to growth in core recurring income.
Earnings from the food business under the Pilmico group were flat while those from real estate business (AboitizLand) dropped.
The power business accounted for 67.1 percent of earnings, followed by banking with a share of 16.8 percent. Food, infrastructure and real estate businesses accounted for 7.8 percent, 7.6 percent and 0.7 percent, respectively.
“Our two-pronged strategy of organic growth in our existing businesses and diversifying our income streams from our fifth leg—infrastructure-related businesses—is on track and paying off,”AEV president Erramon Aboitiz said.
AEV’s infrastructure unit Republic Cement and Building Materials Inc. (RCBM) posted an income contribution of P869 million for the six-month period. It started contributing in mid-September last year.
For the semester, AEV posted a non-recurring gain of P100 million versus last year’s one-time loss of P110 million, largely due to the power unit’s gain on the acquisition of East Asia Utilities Corp. Adjusting for one-offs, AEV’s core net income hit P10.4 billion, 31 percent higher year-on-year.
For AboitizPower, power generation accounted for 82 percent of earnings. Netting out one-off items, AboitizPower’s earnings from the generation business amounted to P8.2 billion, 25 percent higher than year-ago level. Attributable capacity sales rose by 13 percent year-on-year to 2,020 megawatts.