ABOITIZ Equity Ventures Inc. (AEV) posted a 7-percent decline in its net income for the first quarter of the year, brought about by a lower income contribution from its power, food and infrastructure units.
The company noted a nonrecurring loss of P442 million against last year’s gain of P186 million brought about by foreign-exchange (forex) losses.
“With these one-off losses, AEV’s net income for the first quarter of 2017 amounted to P4.7 billion, which is 7 percent lower year-on-year,” AEV said in a disclosure to the stock exchange on Thursday.
Its power arm, Aboitiz Power Corp., contributed P3.4 billion to AEV’s total income. It was 13 percent lower compared to the same period a year ago. On a stand-alone basis, Aboitiz Power recorded an increase of 4 percent in its core net income for the quarter, from P4.8 billion to P5 billion. However, it recognized nonrecurring losses of P577 million against last year’s gain of P242 million comprising of forex losses.
These one-off losses brought Aboitiz Power’s net income for the first quarter of 2017 to P4.4 billion, 13 percent lower year on year.
“We continue to leverage on our portfolio of renewable and thermal power plants, giving us the flexibility to respond to the needs of our customers and the market, while assuring our customers of reliability of supply and our technical support,” said Antonio Moraza, Aboitiz Power president and COO.
The power-generation business accounted for 81 percent of earnings contributions from Aboitiz Power’s business segments, recording an income share of P3.6 billion for the first quarter of 2017, 15-percent lower compared to the same period last year.
Meanwhile the income contribution of the Union Bank of the Philippines to AEV increased by 30 percent in end-March to P1.1 billion.
On a stand-alone basis, UnionBank and its subsidiaries recorded a net income of P2.2 billion for the first quarter of 2017, 27 percent higher compared to the P1.7 billion earned for the same period last year. The increase in net income was largely in view of the sustained growth in recurring income, coupled with trading profits.
The income contribution of AEV’s food business, meanwhile, dropped by 25 percent, from P389 million to P292 million.
AEV’s estate subsidiary, Aboitiz Land Inc., registered a net income of P72 million, 46 percent higher than last year’s P50 million.
The increase in net income was mainly attributed to higher revenue recognition by the industrial business unit, and improved sales and construction progress by the residential-business unit.
From the infrastructure group, Republic Cement and Building Materials Inc.’s income contribution to AEV decreased by 48 percent, from P391 million to P202 million.
It said cement-demand slowdown was experienced in the first quarter of the year, opposite to what happened during the same period last year when there was strong demand due to the election season.