Conglomerate Aboitiz Equity Ventures Inc. said Wednesday consolidated net income increased 27 percent in 2016 to P22.5 billion from P17.7 billion in 2015 as the group’s revenue stream became more diversified.
AEV said in a statement to the stock exchange core net income last year reached P22.8 billion, up by 25 percent from a year ago.
“Through our value creation efforts, we are poised to take advantage of the tailwind our growing economy brings. The gains we recorded over 2016 affirm the soundness of our business strategy of creating a diversified income stream,” said AEV president and chief executive Erramon Aboitiz.
“This year, the group will take even more deliberate steps in bringing progress to communities in line with our strategic objectives,” Aboitiz said.
AEV said power accounted for 65 percent of the group’s income, followed by banking and financial services with 21 percent, food with 7 percent, infrastructure with 7 percent and land strategic business units with 1 percent.
AEV’s power subsidiary Aboitiz Power Corp. reported a 14-percent growth in 2016 income to P20 billion from P17.6 billion in 2015, on strong performance of its generation business.
Aboitiz Power’s core net income also rose 12 percent to P20.6 billion from P18.4 billion in 2015.
Aboitiz Power’s generation business accounted for 82 percent of the company’s earnings, recording an income share of P16.3 billion for 2016, up 17 percent year-on-year.
The company attributed the growth to the fresh contribution from Therma South.
Aboitiz Power’s attributable net energy sales rose 8 percent to 13,495 gigawatt-hours from 12,550 GWh, as electricity sold through bilateral contracts which made up 91 percent of total energy sales expanded 8 percent to 12,279 GWh.
Spot market sales increased 4 percent to 1,216 GWh from 1,168 GWh.
AboitizPower’s net sellable capacity reached 2,975 megawatts as of end-2016 after the Philippine Competition Commission’s approval of the GNPower Mariveles acquisition.
“Amid the rising demand for power generated by a growing economy, we will work hard to further strengthen our relationships with our various stakeholders and customers. We are looking forward to add more capacity in the next few years and move closer to our target generating capacity of 4,000 MW by 2020, to be sourced from a balanced mix of energy sources,” said AboitizPower president and chief operating officer Antonio Moraza.
Union Bank of the Philippines’ income contribution to AEV increased 9 percent year-on-year to P4.9 billion from P2.5 billion.