AEV net profit up 11% in Q2

MANILA, Philippines – Conglomerate Aboitiz Equity Ventures grew its second quarter net profit by 11 percent to P5.6 billion, gaining from its power, banking and food businesses.

AEV ended the first semester of the year with a consolidated net income of P10.2 billion, recording a decline of 9 percent from a year ago mostly due to the lower average selling price and net generation of power recorded for the period.

Excluding non-recurring items, AEV’s core earnings for the first semester amounted to P9.7 billion, down by 15 percent from a year ago, the company disclosed to the Philippine Stock Exchange.

For the second quarter, power accounted for 75 percent of the earnings while the income share of the banking and food units stood at 18 percent and 7 percent, respectively.

Reevaluation of consolidated dollar-denominated loans and placements resulted to a non-recurring gain of P28 million for the three-month period versus last year’s P428 million. In addition, an associate company of its power unit booked a one-off gain, as it received cost reimbursements from the National Power Corp. relating to its fuel importation. AEV’s share in this non-recurring gain amounted to P137 million.

Adjusting for one-off items, AEV closed the second quarter ending June 30 with core profits of P5.4 billion, replicating last year’s level. This translated to P1.85 in earnings per share.

Flagship Aboitiz Power Corp. ended the semester with an income contribution of P8.1 b billion, lower than last year’s P9.7 billion. When adjusted for non-recurring items, the power unit recorded a 23 percent year-on-year reduction in its earnings share, from P9.8 billion to P7.6 billion.