Aboitiz Equity Ventures Inc. posted a net income of P22 billion in 2019, down one percent from P22.2 billion in the previous year.
The company disclosed to the Philippine Stock Exchange it recognized non-recurring gains of ₱516 million last year, compared with the previous year’s non-recurring losses amounting ₱891 million, representing net foreign exchange gains and gains on reversal of impairment provisions.
“Without these one-off gains, AEV’s core net income for 2019 was ₱21.5 billion, 7 percent lower year-on-year from ₱23.1 billion,” it said.
The company consolidated net income in the fourth quarter jumped 28 percent to ₱6.3 billion from ₱4.9 billion on year.
The company recognized non-recurring gains of ₱671 million in the fourth quarter from non-recurring losses of ₱484 million on year.
“Without these one-off gains, the company’s core net income was ₱5.6 billion, a 4 percent increase year-on-year (YoY),” it said.
Power accounted for 57 percent of the total income contributions from AEV’s strategic business units in 2019, while the share of the financial services, food, real estate, and infrastructure units stood at 30 percent, 7 percent, 4 percent, and two percent, respectively.
Aboitiz Power Corp., AEV’s power unit earned ₱17.3 billion in 2019, 20 percent down from ₱21.7 billion in 2018.
Aboitiz Power’s core net income in 2019 stood at ₱16.6 billion, down 30 percent from ₱23.8 billion in 2018, mostly due to the outages experienced last year, higher replacement power costs, lower spot market sales, increased interest expense and increased depreciation expense.
“While market conditions had an effect on our 2019 financial result, we acknowledge that it was primarily driven by operational issues. Having done all the necessary measures to address these technical realities, we are positive about a much stronger operational performance and attaining our targets this year,” said Aboitiz Power president and chief executive officer Emmanuel Rubio.
“We are also confident that our incoming capacities from GNPower Dinginin and full-year operations of Therma Visayas and Hedcor Bukidnon will contribute to our 2020 bottom line,” Rubio added.
