Aboitiz Equity Ventures Inc. said Wednesday consolidated net income fell 54 percent in the first quarter to P3.9 billion from P8.6 billion in the same period last year on lower profit contribution from power, banking and other businesses.
The conglomerate recognized non-recurring gains of P766 million in the first quarter from foreign exchange revaluation compared with P211 million in non-recurring losses a year ago.
Core net income reached P3.2 billion in the first quarter, down 64 percent from a year earlier.
Aboitiz Group president and chief executive Sabin Aboitiz said 2022 started with a strong sense of optimism with the reopening of borders, resumption of travel and reduction of cases, all resulting in economic recovery in the first quarter.
Aboitiz said new global disruptions emerged such as the continuing conflict in Ukraine. “We are prepared to deal with uncertainties through our agile and resilient mechanisms and mindsets that were deeply embedded in our organization long before the pandemic,” Aboitiz said.
AEV said that as part of its transformation strategy, its ownership and share in earnings in subsidiary Aboitiz Power Corp. declined to 52 percent from 77 percent, as a result of its strategic partnership with JERA, which was reflected in the results for the first three months.
Power accounted for 41 percent of the total income contributions from AEV’s strategic business inits while financial Services accounted for 36 percent.
This was followed by income contributions from food, real estate and infrastructure at 14 percent, 4 percent and 4 percent, respectively.
Aboitiz Power income contribution to AEV amounted to P1.5 billion in the first quarter, or 69 percent lower than P4.9 billion in the first quarter of 2021.
Aboitiz Power, on a standalone basis, posted a net income of P2.9 billion during the period, down by 53 percent from P6.2 billion generated in 2021.
Aboitiz Power’s core net income was at P2.9 billion. Its income in the first quarter of 2021 included liquidated damages for the delay in the construction of GNPD and business interruption claims for the GNPower Mariveles Energy Center Ltd. Co. plant outages.
The company was also hit with outages related to Typhoon Odette and had to advance planned outages in anticipation of the country’s national elections.
“We expect electricity demand to grow in the coming months due to the resumption of economic activities of many Filipinos, and as this leads to power reserves in the Luzon and Visayas grids to be squeezed thinner, we at AboitizPower are doing the best we can to prepare for this situation,” Aboitiz Power president and chief executive Emmanuel Rubio said.
“It is our intention to keep our generation plants running at an optimal capacity to continuously serve the energy needs of our customers, and for our distribution utility in Cebu to assist in demand-side management through the Interruptible Load Program,” Rubio said.
Meanwhile, Union Bank of the Philippines’ income contribution to AEV amounted to P1.3 billion, 44 percent lower than P2.4 billion in the same period in 2021.
