Conglomerate Aboitiz Equity Ventures (AEV) saw a 7-percent year-on-year drop in first quarter net profit to P4.7 billion as higher expenses gnawed on the earnings contribution of its flagship power business.
Excluding non-recurring items, AEV’s core net income for the quarter stood 5 percent higher year-on-year to P5.1 billion. The conglomerate booked non-recurring losses of P442 million – versus last year’s gain of P186 million – due to foreign exchange losses from dollar-denominated liabilities and mark-to-market losses on hedging instruments.
Flagship Aboitiz Power Corp. contributed P3.4 billion this quarter, 13 percent less than last year, in line with the 13-percent decline in its overall net profit to P4.4 billion. The power generation business, which accounted for 81 percent of AboitizPower’s business, reported lower earnings due to higher interest and depreciation expenses from the initial take up of GNPower-Mariveles costs alongside an increase in foreign exchange and mark-to-market losses.
At the AEV level, power accounted for 67 percent of total earnings while banking and financial services, food, infrastructure and property businesses contributed 22 percent, 6 percent, 4 percent and 1 percent, respectively.
Cash flow as measured by consolidated earnings before interest, tax, depreciation and amortization stood at P12.7 billion, recording an increase of 14 percent year-on-year.
“Our performance reflects the underlying strength of our core operating businesses as we continue to invest for the future. In pace with the country’s upward growth momentum, we will use our gains to create long-term value for all our stakeholders,” Erramon Aboitiz, AEV president and chief executive officer, said in a press statement yesterday.
Union Bank of the Philippines’ (UnionBank) income contribution to AEV increased by 30 percent year-on-year to P1.1 billion.
Performances from other subsidiaries were mixed.