Ayala Corp. registered a net income of ₱8 billion in the first quarter of the year, up five percent year-on-year, boosted by strong earnings from the core real estate, banking and telecommunications businesses.
Ayala said in a disclosure to the stock exchange the first-quarter performance was a result of the healthy equity earnings contribution from business units, which rose seven percent to ₱9.9 billion.
Equity earnings contributions of Globe Telecom Inc., Ayala Land Inc. and Bank of the Philippine Islands increased 44 percent, 15 percent and five percent, respectively.
The first-quarter performance was also lifted by the P1-billion, one time gain from the merger of education unit with the Yuchengco Group.
“Our first-quarter results show the advantages of a diversified portfolio. The strong performance of Ayala Land, Globe and BPI offset the challenges from Manila Water’s water supply issues and the market conditions facing AC Industrials,” said Ayala president and chief operating officer Fernando Zobel de Ayala.
“In addition, capital generated from the closing of the transactions in AC Education and AC Energy provide a boost for funding new investments and reducing debt at the parent level,” he added.
Ayala said it would receive gross proceeds of $573 million from the partial sale of AC Energy’s thermal assets to Aboitiz Power in the second quarter following the completion of the transaction on May 2.
The transaction involved the acquisition of a 49-percent voting stake and 60-percent economic stake by Aboitiz Power Inc. in AA Thermal, AC Energy’s thermal platform in the Philippines.
AA Thermal consists of AC Energy’s limited partnership interests in GNPower Mariveles and GNPower Dinginin, which is currently under construction.
The completion of the transaction is expected to help the conglomerate achieve a P50-billion net income this year, one year ahead of target.
The group’s utility unit Manila Water Co. Inc. recorded a net income of ₱1.2 billion, down 27 percent on year, on higher operating expenses that reflected the impact of the water shortage in the Metro Manila concession.