Conglomerate Aboitiz Equity Ventures (AEV) Inc. chalked up P21.6 billion in net profit last year, down by 4 percent due mostly to nonrecurring losses from asset impairment and debt prepayment costs.
Stripping out one-off items, core net income in 2017 was 5 percent higher at P23.9 billion, AEV disclosed to the Philippine Stock Exchange on Friday.
For the fourth quarter alone, AEV grew its net profit by 6 percent year-on-year to P5.7 billion. That quarter, the conglomerate booked nonrecurring losses of P1.1 billion, larger than last year’s comparative loss of P330 million.
For the full year, AEV recognized nonrecurring losses from asset impairment and debt repayment costs amounting to P2.3 billion versus losses of P347 million in the previous year. These were partially offset by a one-time recognition of lower interest expense from an acquired loan and by foreign exchange gains.
Out of the total income contributions from the company’s business units for the full year, power accounted for 69 percent while financial services, food, real estate, and infrastructure accounted for 18 percent, 7 percent, 3 percent and 3 percent, respectively.
“While we faced challenges that tested the resilience of our portfolio, these results still showed the underlying strength of our core operating businesses, prompting our optimism on the long-term fundamentals of our businesses,” AEV president and chief executive Erramon Aboitiz said.
Flagship Aboitiz Power Corp. grew its income contribution to AEV last year by 2 percent to P15.7 billion, while core net income increased by 13 percent to P23.3 billion.
AboitizPower booked a nonrecurring loss of P2.9 billion, larger than the previous loss of P611 million, primarily due to impairment and refinancing costs relating to Aseagas Corp. Overall, AboitizPower’s net income amounted to P20.4 billion, up by 2 percent. —DORIS DUMLAO-ABADILLA