Aboitiz Power drives AEV’s 9-month earnings to P17.8 billion

CEBU, Philippines — Aboitiz Power Corp. led the earnings performance of Aboitiz Equity Ventures Inc. (AEV) in the first nine months of 2026, as higher electricity prices, increased contracted power sales and additional generation capacity offset weaker performance in other business segments.

AboitizPower reported net income of P26.2 billion for the January-to-September period, up 13 percent from P23.3 billion a year earlier, making it the largest contributor to the conglomerate’s earnings.

The power business contributed P14.1 billion to AEV’s consolidated earnings, accounting for about 64 percent of the group’s reported earnings mix.

AEV reported consolidated net income of P17.8 billion, a 2 percent increase from the same period last year, supported by stronger contributions from its power and banking businesses.

AboitizPower’s growth was driven by higher electricity market prices, greater volumes covered by supply contracts and additional generation from the Caliraya-Botocan-Kalayaan (CBK) Hydroelectric Power Plant Complex and newly commissioned solar facilities.

These gains more than offset the effects of lower coal plant availability during the period.

Excluding one-off items and foreign exchange gains and losses, AboitizPower’s net income rose 11 percent to P25.5 billion. Operating earnings increased 13 percent to P63.7 billion.

The company, however, recorded lower third-quarter net income of P7.8 billion, against P10.6 billion a year earlier, reflecting reduced availability of its coal-fired power plants.

AboitizPower continued to expand its generation and energy storage portfolio, including the groundbreaking in July of a 60-megawatt battery energy storage facility in Cebu, aimed at strengthening grid reliability.

The expansion comes as power demand and supply reliability remain important considerations for the country’s electricity market, particularly in the Visayas, where additional capacity and grid flexibility are needed to support economic activity.

Banking provides additional earnings support

Union Bank of the Philippines was another major contributor to AEV’s performance, reporting a 53 percent increase in net income to P9.9 billion.

The bank’s total revenue grew 8 percent to P65.5 billion, supported by higher lending income, banking fees and wealth management services. Net interest income increased 9% to P51.9 billion.

Loans to individual customers accounted for 62 percent of its total loan portfolio, while provisions for potential loan losses declined 4 percent to P15 billion.

As of September, UnionBank had P1.2 trillion in assets and P573.5 billion in loans, contributing P5 billion to AEV’s earnings. The bank also reported serving more than 19.5 million customers in its October earnings announcement.

Mixed results across other businesses

AEV’s food and beverage operations, comprising Aboitiz Foods and Coca-Cola Europacific Aboitiz Philippines, contributed P4.7 billion, down from P5.2 billion a year earlier.

Higher beverage volumes at CCEAP and gains in regional livestock feeds, trading, pet food, specialty nutrition and fish feeds at Aboitiz Foods were partly offset by weaker farm and meat operations, amid import competition and softer domestic demand.

In real estate, AEV’s earnings fell sharply to P7 million from P1.7 billion, reflecting the absence of significant land sale gains recorded in 2025 and the timing of economic estate lot sales.

Residential operations nevertheless reported improved sales quality and fewer forfeitures, while economic estates benefited from higher occupancy and rental rates.

In infrastructure, AEV’s share of Aboitiz InfraCapital’s losses narrowed to P520 million from P668 million, helped by increased passenger traffic at Mactan-Cebu International Airport and contributions from the Laguindingan and Bohol-Panglao international airports.

However, Republic Cement continued to weigh on the segment, with AEV’s share of its losses increasing to P1.2 billion from P1.1 billion. Total infrastructure losses attributable to AEV reached P1.7 billion.

Despite the improvement in its nine-month earnings, AEV’s third-quarter net income dropped to P4.1 billion from P8.9 billion a year earlier, highlighting the uneven performance of its businesses.

As of September 30, AEV had total assets of about P1 trillion and cash holdings of P84.8 billion. Total liabilities stood at P621.2 billion, while equity attributable to parent company shareholders increased to P301.9 billion.

The group maintained a current ratio of 1.1 times and a net debt-to-equity ratio of 0.9 times.

In May, AEV received an A- investment-grade credit rating with a stable outlook from Japan Credit Rating Agency, which cited its diversified portfolio, recurring cash generation and financial management.

The results show the growing importance of power generation to AEV’s earnings base, with AboitizPower providing the largest share of profits as the conglomerate navigates differing operating conditions across its businesses.