Due to higher earnings contributions from its power, banking, real estate and cement businesses, conglomerate Aboitiz Equity Ventures Inc. (AEV) was able to exceed last year its prepandemic earnings as it grew its net profit by 77 percent to P27.3 billion.
For the fourth quarter alone, AEV’s net income rose by 9 percent year-on-year to P7.8 billion due to one-time foreign exchange gains. Without these extraordinary items, core profit in the fourth quarter declined by 3 percent year-on-year to P7.3 billion.
For the full year, AEV’s net profit turned out 12.3-percent better than the P24.3-billion earnings that the market was expecting the conglomerate to deliver per Bloomberg forecasts. It also exceeded the P22-billion net profit posted in 2019, the last full year before the COVID-19 pandemic erupted.
“At the end of 2021, the Aboitiz Group’s performance trajectory continues to substantially improve, posting steadily rising figures. Our investments in digital transformation and innovation, matched by a strong culture of agility and resilience have paid off handsomely as we powered through the pandemic with strong performance indicators,” Aboitiz Group president and CEO Sabin Aboitiz said.
AEV booked nonrecurring gains of P527 million last year, primarily due to the revaluation of its dollar-denominated assets. Without these one-off gains, AEV’s core net income for 2021 was P26.8 billion, a 68-percent increase.
66% higher contribution
Flagship Aboitiz Power Corp.’s income contribution to AEV for 2021 amounted to P16 billion, 66-percent higher than the previous year.
On a standalone basis, AboitizPower’s net income last year rose by 66 percent to P20.8 billion. Its core net income grew by 68 percent to P21.1 billion primarily due to commissioning revenues from GNPower Dinginin unit 1, higher water inflow for its hydro plants, higher availability of Therma Luzon Inc., Therma South Inc. and Therma Visayas Inc. facilities, and higher spot electricity price dispatch pursuant to the must-offer rule.
Union Bank’s income contribution to AEV in 2021, meanwhile, amounted to P6.4 billion, 9-percent higher than the previous year.
Other businesses also reported higher profits for the year. INQ