AEV reports 24% increase in first-quarter profit to P5 billion

Conglomerate Aboitiz Equity Ventures Inc. (AEV) reported a 24-percent increase in profit to P5 billion in the first quarter on the back of power, banking and financial services, and infrastructure business units.

Power accounted for 70 percent of earnings, followed by banking and financial services (15 percent), food (seven percent), infrastructure (seven percent) and land (one percent).

Aboitiz Power Corp. (AboitizPower) contributed P3.9 billion to the Group’s income, 15 percent higher versus 2015’s P3.3 billion.

For power generation, capacity sales rose by 12 percent to 2,014 megawatts (MW) from 1,804 MW due to additional capacities from Therma South, Inc. and higher available capacities from SN Aboitiz Power (SNAP) Group’s hydro power plants.

Union Bank of the Philippines (UnionBank) and its subsidiaries posted P837 million in income contribution during the first quarter, more than double last year’s figure, on strong growth in net interest income and fees.

AEV’s non-listed food subsidiaries (Pilmico Foods Corporation, Pilmico Animal Nutrition Corporation, and Pilmico International Pte Limited) posted a 6-percent decline in its first-quarter income contribution amounting to P389 million.

Land subsidiary, Aboitiz Land Inc.’s (AboitizLand) total earnings shares to AEV declined by 38 percent from P80 million to hpP50 million, on slower pace of construction and higher operating expenses.

The residential, industrial, and commercial BUs brought in revenues of P282 million (56 percent), P186 million (37 percent) and P32 million (6 percent), respectively.

AEV’s infrastructure company, Republic Cement and Building Materials, Inc. (RCBM), which started contributing mid-September last year, posted an income contribution of P391 million.

“The contribution from our cement business is a clear manifestation of the momentum in our thrust to create a fifth leg for AEV. We expect strong growth in cement and the full-year recognition of income from Republic Cement to positively impact AEV’s earnings this year,” said Erramon I. Aboitiz, AEV President and Chief Executive Officer.