Aboitiz Equity Ventures Inc., the holding company of the Aboitiz Group, posted a consolidated net income of P5 billion in the first quarter of 2016, up 24 percent year-on-year, on the strong performance of its power, banking and financial services, and infrastructure business units.
Power accounted for 70 percent of the earnings, followed by banking and financial services, 15 percent; food, 7 percent; infrastructure, 7 percent; and land, 1 percent.
The company said in a disclosure to the Philippine Stock Exchange core net income inthe quarter stood at P4.9 billion, up 19 percent on year.
“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,” Aboitiz Equity president and chief executive Erramon Aboitiz said.
“We are also very pleased with the growth in contributions coming from our power and banking and financial services units,” he said.
Unit Aboitiz Power Corp., meanwhile, said consolidated net income in the first quarter rose 15 percent to P5 billion, while core net profit rose climbed 10 percent to P4.8 billion from P4.3 billion last year.
“Our performance in this year’s first quarter reflects the strength of our right-mix strategy with our portfolio of renewable and non-renewable energy sources,” said Aboitiz Power president and chief operating officer Antonio Moraza.
Capacity sales of the power generation sector rose 12 percent to 2,014 megawatts from 1,804 MW due to additional capacities from Therma South Inc. and higher available capacities from SN Aboitiz Power Group’s hydro power plants.
Electricity from power distribution increased 8 percent to 1,201 gigawatt-hours from 1,111 GWh a year ago, driven by higher electricity sales across all customer segments.
Union Bank of the Philippines and its subsidiaries contributed an income of P837 million in the first quarter, more than double a year ago.
The bank attributed the higher income to the strong growth in net interest income and fees
Aboitiz Equity’s non-listed food subsidiaries—Pilmico Foods Corp., Pilmico Animal Nutrition Corp. and Pilmico International Pte Ltd.—posted a 6-percent decline in first-quarter income contribution to P389 million from P416 million.
Feeds Philippines’ bottomline improved 39 percent to P203 million due to strong volume and lower raw material prices, while Feeds Vietnam, Flour and Farms all reported a drop in income contributions, largely driven by lower prevailing selling prices.
Aboitiz Land Inc.’s earnings and income contribution to Aboitiz Equity in the first quarter decreased 38 percent to P50 million from P80 million, with revenues declining 13 percent to P500 million from P576 million in 2015.