AEV nets P22.5B

Conglomerate Aboitiz Equity Ventures (AEV) chalked up a consolidated net income of P22.5 billion last year, up by 27 percent from the previous year on higher earnings from its power, banking, infrastructure and food businesses.

For the fourth quarter alone, AEV’s net profit declined by 7 percent year-on-year to P5.4 billion, mostly due to non-recurring loss amounting to P330 million arising from foreign exchange losses generated from the revaluation of dollar-denominated liabilities and refinancing costs, AEV disclosed to the Philippine Stock Exchange on Wednesday.

Adjusting for these one-off items, AEV closed the last quarter of 2016 with a core net income of P5.7 billion, down by 1 percent year-on-year.

On a full-year basis, AEV’s consolidated net income translated to P4.02 in earnings per share. Power accounted for 65 percent of total earnings, followed by the financial services, food, infrastructure and real estate units with income contributions of 21 percent, 7 percent, 7 percent and 1 percent, respectively.

Excluding non-recurring items, AEV’s core net income amounted to P22.8 billion, up by 25 percent over last year.

For the year, AEV incurred a non-recurring loss of P347 million versus last year’s loss of P602 million, which mainly resulted from the refinancing costs and goodwill impairment of its power business, partly offset by the net foreign exchange gains from the revaluation of dollar-denominated assets and liabilities.

Flagship unit Aboitiz Power Corp. contributed 14 percent earnings last year to P15.4 billion. On a stand-alone basis, AboitizPower saw a 14 percent growth in net profit to P20 billion.