AEV net income rises 3% to P22.2 billion in 2018

Published March 9, 2019, 12:00 AM

by manilabulletin_admin

By James A. Loyola

Aboitiz Equity Ventures, Inc. (AEV) posted a 3 percent increase in its net income to P22.2 billion for 2018 from P21.6 billion in 2017, according to its disclosure to the Philippine Stock Exchange.

Aboitiz Logo (via Bulletin)
Aboitiz Logo (via Bulletin)

The firm said its power business unit (BU) remained its biggest income contributor, accounting for 73 percent while its financial services, food, real estate, and infrastructure BUs pitched in 16 percent, 7 percent, 3 percent, and 1 percent, respectively.

“We remain confident about the long-term prospects of our businesses in fueling our country’s economic growth, which, in return, generates greater demand for our products and services,” said AEV President and Chief Executive Officer Erramon I. Aboitiz.

Meanwhile, AEV’s core net income totaled P23.1 billion, 3 percent lower than the P23.9 billion recorded in 2017.

AEV also recorded consolidated earnings before interest, taxes, depreciation, and amortization amounting to P60.7 billion last year, up 6.5 percent from 2017.

“From investing to meet infrastructure demand to providing innovative solutions to empower small businesses, and through our new multi-country platform, we leverage our capabilities to drive change for a better world by advancing business and communities,” Aboitiz said.

UnionBank recorded a net income of P7.3 billion in 2018, down 13 percent from the P8.4 billion earned the previous year.

AboitizPower realized P21.7 billion in net income in 2018, 6 percent higher compared to 2017 .

The publicly listed power firm noted that its net income should have actually been higher at P23.8 billion, had it not been for its booked non-recurring losses of P2.1 billion.

The company’s consolidated earnings before interest, tax, depreciation and amortization (EBITDA) also climbed by 8.0-percent to P51.5 billion from 2017 level of P47.7 billion.

As emphasized by Aboitiz Power Chief Operating Officer Emmanuel V. Rubio, “we were able to sustain our growth with the entry of new capacities from our baseload power plant as well as our hydro plant in Manolo Fortich, Bukidnon.”

Pilmico reported a net income of P1.6 billion for 2018, an 8 percent decrease from the P1.7 billion recorded in 2017, due mostly to declines from Feeds Philippines which suffered from higher raw materials costs and from Farms which incurred lower asset revaluation gains.

Meanwhile, Flour business segment’s net income increased by 52 percent to P299 million, on the back of better commodity and foreign exchange positioning.

AboitizLand reported net income of P645 million in 2018, 13 percent lower than the P744 million recorded in 2017 due to the absence of fair valuation gains on investment properties in 2018 despite enjoying higher revenues.

Republic Cement’s income contribution to AEV in 2018 amounted to P213 million, 68 percent lower than the P671 million posted in 2017, due to significantly higher fuel and power costs, which offset the improvement in prices due to government infrastructure spending and stable private sector demand.