Aboitiz Equity net income up 13% in Q4

Aboitiz Equity Ventures Inc. posted a double-digit increase in its profits during the fourth quarter of 2020, but this was not enough to offset losses the company incurred earlier in the year due to the COVID-19 pandemic.

In a regulatory filing, Aboitiz Equity said its net income rose by 13% to P7.1 billion in the last three months of 2020 versus the P6.3 billion the same period in 2019.

Aboitiz Equity recognized non-recurring net losses of P472 million during the period versus the P671 million in non-recurring net gains in 2019. Without these, AEV said its core net income was 34% higher at P7.6 billion.

For the full-year 2020, Aboitiz Equity reported a 30% drop in its net income to P15.4 billion from P22.0 billion a year ago. Without one-off losses, core net income was 26% down to P15.9 billion.

"In 2020, the Aboitiz Group, like all other business organizations in our country, faced not only the unprecedented challenges brought on by the COVID-19 pandemic but the normal run-of-mill issues that normal times bring," president and chief executive officer Sabin Aboitiz said in the filing.

"Through the many uncertainties, our business units stayed focused on ensuring we deliver uninterrupted vital services to our customers and communities," he added.

Aboitiz said consideration of the company's future growth has led it to significantly reduce its capital expenditure budgets and prioritize essential projects.

Aboitiz Equity's core businesses are grouped into six main categories: power generation, distribution, and retail electricity supply; financial services; food manufacturing; real estate; infrastructure; and portfolio investments.

Its portfolio includes Aboitiz Power Corp., the Union Bank of the Philippines, Pilmico Foods Corp., AboitizLand Inc., and Republic Cement & Building Materials Inc.

Shares in the Aboitiz Equity closed Monday at P41.00 apiece, down by P0.75 or 1.75% from last Friday's finish of P42.75 apiece. — Jon Viktor D. Cabuenas/BM, GMA News