Aboitiz Equity Ventures Inc. posted a net income of P9 billion in the first six months of 2019, down 11 percent from P10.1 billion year-on-year.
AEV disclosed to the Philippine Stock Exchange on Wednesday the company recognized non-recurring gains of P78 million against P467 million in non-recurring losses in the previous period, representing the foreign exchange differential in restating dollar-denominated net debt.
Without these one-off gains, AEV’s core net income for the first half of 2019 was P8.9 billion, 16 percent lower from P10.6 billon year-on-year, it said.
“While challenges to our bottom line continue to persist, we have seen recovery across our entire portfolio compared to the same period last year and compared to the previous quarter,” said AEV president and chief executive officer Erramon Aboitiz.
“We still feel we are well-positioned to reap the benefits of our country’s ‘demographic dividend’ and to take advantage of opportunities to evolve and expand beyond our borders, as we deepen our role in building a better future for communities,” he added.
AEV recorded consolidated earnings before interest, taxes, depreciation, and appreciation of P26.5 billion in the first six months, down 5 percent from P28 billion on year.
AEV registered a consolidated net income of P5.4 billion in the second quarter, up 3 percent from P5.3 billion on year.
Core net income in the second quarter stood at P5 billion, down 6 percent on year.
AEV said power accounted for 67 percent of the total income contributions, while the share of the financial services, food, infrastructure and real estate units stood at at 24 percent, 6 percent, 2 percent, and one percent, respectively.
Aboitiz Power Corp. reported a net income of P8.6 billion in the first half, 5-percent lower than P9.1 billion on year, while core net income was at P8.5 billion, 19 percent down from P10.5 billion on year.
Aboitiz Power attributed the decline to the higher volume and cost of purchased power during the first half.
Spot market prices were exceptionally high during the first half. The company purchased replacement power due to outages and contracting ahead in preparation for incoming capacity.
“The first half of 2019 was challenging for Aboitiz Power as Luzon faced supply issues leading to the elections. Nevertheless, we remained committed to serving our customers to the extent of providing them with replacement power that we bought from the spot market at rates higher than our contract prices,” said Aboitiz Power chief operating officer Emmanuel Rubio.