Aboitiz Equity books P15.7B in first 9 months, down 9%

Aboitiz Equity Ventures (AEV) posted a 9% decline in its net income for the first nine months of 2019 brought by the double-digit decline of its power business.

AEV booked a net income of P15.7 billion, down from P17.3 billion a year earlier.

Power accounted for 60% of the total income contributions, followed by banking and financial services at 25%, food at 6%, land at 5%, and infrastructure at 4%.

“Despite challenges in our power business, better operating performance in our non-power businesses provided resilience to our investment portfolio. As we fund our growth projects, we look to further broaden and strengthen our diversification in the Philippines and overseas,” AEV president and CEO Erramon Aboitiz said.

Aboitiz Power Corporation's net income contribution to AEV  decreased by 19% to P10.4 billion from P12.8 billion a year earlier.

AboitizPower’s net income was P13.5 billion, down 19% primarily due to the higher volume and cost of purchased power, lower spot market revenues, and lower plant availability.

Union Bank of the Philippines’ income contribution to AEV increased by 41% to P4.2 billion from P3 billion.

UnionBank and its subsidiaries recorded a net income of P8.5 billion, up 40% from P6.1 billion year-on-year primarily driven by robust revenues coming from the sustained double-digit growth in earning assets as well as strong trading gains for the first three quarters of 2019.

AEV’s non-listed food subsidiaries’ Pilmico Foods Corporation, Pilmico Animal Nutrition Corporation, and AEV International Pte. Ltd. (AEVI) income contribution to the company amounted to P1 billion, down 31% from the P1.5 billion a year earlier.

This was due to declines from the Feeds and Farms business segments, which fell due to higher manufacturing costs and operating expenses, and decreased margins following increased feeds costs and lower live hog selling prices, respectively.

For the Infrastructure group, Republic Cement & Building Materials, Inc.’s income contribution to AEV for the first three quarters of 2019 amounted to P631 million, up 186% than the P221 million reported in the same period last year.

"This was primarily due to improved control on production costs, increased private sector demand, and the completion of several debottlenecking projects," AEV said.

Aboitiz Land Inc. and its subsidiaries reported a consolidated net income of P829 million, up 106% from P404 million.

"This was mainly due to fair valuation gains on investment properties recognized in the third quarter of 2019 which were not present in the same period last year," it said. — BM, GMA News