Conglomerate Aboitiz Equity Ventures Inc. posted a net income of P15.7 billion in the first nine months, down nine percent from ₱17.3 billion year-on-year.
AEV said in a disclosure to the Philippine Stock Exchange it recognized non-recurring losses of ₱155 million, lower than the previous year’s ₱407 million, representing net foreign exchange and derivative losses.
Without the one-off losses, AEV’s core net income in the first nine months reached ₱15.9 billion, 10 percent lower that ₱17.7 billion on year.
“Despite challenges in our power business, better operating performance in our non-power businesses provided resilience to our investment portfolio. As we fund our growth projects, we look to further broaden and strengthen our diversification in the Philippines and overseas,” said AEV president and chief executive officer Erramon Aboitiz.
AEV recorded consolidated earnings before interest, tax, depreciation, and amortization of ₱44.8 billion in the first three quarters, down 2 percent from ₱45.5 billion on year.
Power accounted for 60 percent of the total income contributions, followed by banking and financial services (25 percent), food (six percent), Land (five percent), and Infrastructure (four percent).
Aboitiz Power’s net income in the first nine months reached ₱13.5 billion, 19 percent lower than ₱16.7 billion recorded on year.
The company’s core net income was also lower at ₱13.7 billion, down 26 percent from ₱18.4 billion in the same period last year, due to the higher volume and cost of purchased power, lower spot market revenues and reduced plant availability.
“It has been a tough year for Aboitiz Power with the supply issues that resulted in the high cost of replacement power for our customers. The company has also generated lower revenues from the spot market due to challenges that caused some of our power plants to shut down,” said Aboitiz Power chief operating officer Emmanuel Rubio.
“Despite this, our customer base continues to grow, which underscores the consumers’ trust and confidence in Aboitiz Power. Moreover, we remain confident that with our incoming capacities, we will surpass our 2020 target of 4,000 megawatts attributable capacity, ensuring sustainable growth for the company, our shareholders, and the customers and communities we serve,” Rubio said.
