LISTED Aboitiz Equity Ventures, Inc. (AEV) reported on Monday a core net income of P15.9 billion last year, 26% lower than the value a year earlier, with its power business contributing more than half of earnings.
In a disclosure to the local bourse, AEV said its power unit Aboitiz Power Corp. made up 52% of the total income contributions from its strategic business units, while financial services contributed 32%. The food, infrastructure, and real estate segments accounted for 12%, 2%, and 2%, respectively.
Bulk of AboitizPower’s income came from power generation and retail electricity supply, which brought in P12 billion last year, according to AEV.
“AboitizPower’s net income contribution to AEV for 2020 was P9.7 billion, 27% lower compared to the ₱13.3 billion recorded in the previous year,” the holding firm said.
In a separate disclosure, the power unit said that its net income in 2020 was P12.6 billion, around P27% lower than in 2019.
AboitizPower said that its core net income last year was 25% lower at P12.5 billion, mainly due to the additional tax expenses incurred after the income tax holiday incentives of Therma South, Inc. and GN Power Mariveles Energy Center Ltd. Co. had expired.
Meanwhile, AEV said that its banking arm UnionBank of the Philippines and its subsidiaries recorded a net income of P11.6 billion, which was 18% lower year on year. This was primarily attributed to higher provisions for loan losses for 2020.
The firm added that the net income of its three non-listed food units reached P1.2 billion last year. This was even after AEV’s farms business segment lost P552 million from decreased margins due to the industry-wide effect of the African Swine Fever.
AEV’s real estate business, comprising AboitizLand, Inc. and its subsidiaries, suffered a 64% drop to P338 million in its consolidated net income last year.
“This was primarily due to the absence of fair valuation gains on investment properties recognized in 2019, which were not present in 2020,” it said.
The company’s infrastructure group, Republic Cement & Building Materials, Inc, reported a net income of P590 million last year, lower by 4% compared with the 2019 value.
“This negative variance was mainly due to the contraction in the demand for cement as construction activities significantly slowed down, particularly during the enforcement of coronavirus disease-related community quarantines,” AEV said.
In the fourth quarter, AEV’s consolidated net income improved by 13% at P8.1 billion, from its P6.3 billion value in 2019.
“Through the many uncertainties, our business units stayed focused on ensuring we deliver uninterrupted vital services to our customers and communities. Careful consideration of our future growth led us to significantly reduce our capital expenditure budgets and prioritize essential projects supported by our strong balance sheet,” AEV President and Chief Executive Officer Sabin M. Aboitiz said in a statement.
He added that the group’s early digital transformation had allowed it to “seamlessly transition work processes from the physical environment to virtual platforms.”
AEV shares in the local bourse shed 1.75% or 0.75 centavos to close at P42 apiece on Monday. — Angelica Y. Yang
