Aboitiz Equity Ventures, Inc. (AEV) reported a 2% drop in earnings for the first six months of 2018, dragged by net forex losses coming from ts dollar-denominated debt.
In a statement issued Wednesday, August 1, the listed conglomerate said net income fell to P10.1 billion in the first semester, lower than the P10.3 billion it generated in the same period a year ago. AEV wrote off non-recurring losses worth P467 million, against P495 million in losses a year ago. This represents “net foreign exchange losses recognized on the restatement of dollar-denominated net debt.”
“Our first half results reflect challenges that continue to test the resilience of our diversified portfolio,” AEV President and Chief Executive Officer Erramon I. Aboitiz was quoted as saying in a statement.
AEV’s power business remained to be the largest contributor to net income at 68%, followed by the banking and financial services unit at 22%, food at six percent, land at three percent, and the remaining one percent from infrastructure.
Aboitiz Power Corp.’s net income dropped six percent to P9.1 billion during the first half. In terms of its contribution to the parent, the power unit provided P7.5 billion to AEV, also lower by six percent year-on-year. — Arra B. Francia