By Arra B. Francia, Reporter
ABOITIZ Equity Ventures, Inc. (AEV) saw its consolidated profit rise by three percent in 2018, as its weaker performance in the fourth quarter tempered its full-year results.
In a disclosure to the stock exchange on Friday, the listed power conglomerate said consolidated net income reached P22.2 billion last year, versus the P21.6 billion posted in 2017.
The company recorded non-recurring losses worth P891 million for the period, significantly lower than the P2.3 billion it recognized in 2017 for net unrealized foreign exchange losses and asset impairment costs.
Excluding one-off losses, AEV’s core net income went down by three percent to P23.1 billion.
For the fourth quarter alone, AEV’s consolidated net income fell 14% to P4.9 billion, with non-recurring losses for the period reaching P484 million. Without this one-time item, core net income for the October to December period receded by 21% to P5.4 billion.
AEV’s power business accounted for 73% of its full-year results, followed by financial services which provided 16%. The food, real estate, and infrastructure segments contributed 7%, 3%, and 1%, 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,” AEV President and Chief Executive Officer Erramon I. Aboitiz said in a statement.
Aboitiz Power Corp. (AboitizPower) delivered P16.7 billion in earnings to the parent, 6% higher year on year.
On its own, AboitizPower’s core profit went up 2% to P23.8 billion for the year, thanks to additional contributions from Pagbilao Energy Corp. and Hedcor Bukidnon, Inc. Its generation and retail electricity supply accounted for bulk of earnings at 83%, while the distribution business provided 18%.
Union Bank of the Philippines saw its net income drop by 13% to P7.3 billion. Its contribution to AEV also slipped by 13% to P3.6 billion for the period.
The high cost of raw materials weighed on AEV’s food businesses, which includes Pilmico Foods Corporation, Pilmico International Pte. Ltd., Gold Coin Management Holdings Limited, Pilmico Animal Nutrition — Joint Stock Company, and Vietnam Feeds. The food group’s net income dipped by 8% to P1.6 billion.
Meanwhile, AboitizLand, Inc clocked in a consolidated net income of P645 million, 13% lower year on year due to the absence of fair valuation gains on investment properties. Revenues however firmed up by 9% to P4 billion, owing to its industrial business.
The infrastructure group composed of Republic Cement and Building Materials, Inc. provided AEV with P213 million, 68% lower than in 2017 due to higher fuel and power costs. The company however noted that its sales volume improved for the year due to the government’s robust infrastructure spending, coupled by stable demand from the private sector.
Shares in AEV rose 0.26% or 15 centavos to close at P58.80 each at the stock exchange on Friday.