Aboitiz Equity Ventures Inc. reported a 12 percent dip in consolidated net income to P11.8 billion in the first half of 2022 from the P13.5 billion recorded during the same period last year.

In a disclosure to the Philippine Stock Exchange, AEV said it recognized non-recurring gains of P2.7 billion, primarily due to foreign exchange gains from the revaluation of dollar-denominated assets, compared with P169 million in non-recurring losses recorded during the same period in 2021.

Without these one-off losses, AEV’s core net income for the first half of 2022 was P9.1 billion, a 33 percent decrease year-on-year (YoY).

For the second quarter of the year, AEV’s consolidated net income jumped 60 percent to P7.9 billion from the P4.9 billion reported during the corresponding period in 2021.

The company recognized non-recurring gains of ₱2.0 billion during the period, primarily due to foreign exchange gains from the revaluation of dollar-denominated assets, compared to the P49 million in non-recurring gains for the corresponding period in 2021.

Without these one-off gains, AEV’s core net income for the second quarter of 2022 was P5.9 billion, a 21 percent increase YoY.

AEV’s ownership (and therefore share in earnings) in Aboitiz Power Corporation (AboitizPower) declined from 77 percent to 52 percent effective end of 2021, as a result of its strategic partnership with JERA Asia Private Limited, and this was reflected in the results for the first half of 2022.

If AEV retained the same ownership of AboitizPower and removed the extraordinary trading gains realized by Union Bank of the Philippines in 2021, core net income would have been higher by 19 percent compared to the same period in 2021.

Power accounted for 52 percent of the total income contributions from AEV’s Strategic Business Units (SBU) during the first half of 2022, while Financial Services accounted for 31 percent.

Income contributions from Real Estate, Infrastructure, and Food SBUs were at 12 percent, 4 percent, and 2 percent, respectively.

“We ended the first half of 2022 with our Great Transformation well underway, with a new Chief Transformation Officer leading a strong governance network of leaders overseeing our cultural, technological, operational, and ultimately financial transformations,” said Aboitiz Group President and CEO Sabin M. Aboitiz.

He noted that from an investor’s standpoint, their primary objective is to make sure these transformations produce a ‘techglomerate premium’ wherein the synergy between all the Group’s components is strengthened to the point where the Group as a whole becomes much more valuable than the sum of its parts, such that in the overall outcome we become a top choice in our stakeholders’ ecosystem.