AEV income up 27% in 2016
Danessa Rivera (The Philippine Star) - March 9, 2017 - 12:00am

MANILA, Philippines - Cebu-based conglomerate Aboitiz Equity Ventures Inc. boosted its net income over a fifth in 2016, with the bulk still coming from its power business.

In a statement, AEV said consolidated net income rose 27 percent from P17.7 billion in 2015 to P22.5 billion last year.

Power accounted for 65 percent of total net income, followed by the banking and financial services at 21 percent. Food and infrastructure contributed seven percent each while land strategic business, one percent.

Core net income, meanwhile rose only 25 percent to P22.8 billion after a non-recurring loss of P347 million versus the previous year’s loss of P602 million due to the power business’ mark-to-market revaluation of dollar-denominated assets and liabilities refinancing costs and goodwill impairment.

“Through our value creation efforts, we are poised to take advantage of the tailwind our growing economy brings. The gains we recorded over 2016 affirm the soundness of our business strategy of creating a diversified income stream,” AEV president and CEO Erramon Aboitiz said.

Aboitiz Power Corp. ended 2016 with an income contribution of P15.4 billion, up 14 percent from P13.5 billion, mainly driven by its generation business.

The generation business, which accounted for 82 percent, recorded an income share of P16.3 billion for 2016. The growth was largely driven by Therma South’s contribution.

On the other hand, the contribution of the power distribution segment decreased four percent from P3.8 billion to P3.7 billion, or 18 percent of total.

Union Bank of the Philippines recorded a 92 percent jump in income contribution from P2.5 billion to P4.9 billion. Growth was largely attributed to the profits from securities sold in the second half of the year to support the bank’s loan growth strategy which accounted for P3.8 billion.

AEV’s food subsidiaries Pilmico Foods Corp., Pilmico Animal Nutrition Corp. and Pilmico International Pte Ltd.’s total earnings and income contribution posted one percent growth in net income at P1.7 billion.

Feeds Philippines’ income contribution to Pilmico increased 13 percent to P963 million on the back of strong volume growth despite lower margins brought about by depressed selling prices.

On the other hand, Feeds Vietnam and Farms reported a decrease in income contributions, mainly driven by lower prevailing selling prices.

AEV’s investment in infrastructure, Republic Cement and Building Materials Inc., contributed P1.6 billion to total earnings, a 700 percent from the previous period’s P164 million since 2016 is the first full year of contribution.

AEV’s land subsidiary, Aboitiz Land Inc., saw a 65 percent decline in earnings contribution from P536 million to P188 million because of deferred industrial business unit revenue recognition, planned increases in operating expenses intended for the organization’s future growth.

ABOITIZ EQUITY VENTURES INC.
Philstar
  • Latest
  • Trending
Latest
Recommended
Are you sure you want to log out?
X
Login

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

SIGN IN
or sign in with