Aboitiz Equity Ventures Inc. said Tuesday net income fell 55 percent in the first half to P4 billion from P9 billion in the same period last year, reflecting the impact of the lower contribution from Aboitiz Power Corp.
Aboitiz Power reported a net income of P3.7 billion in the six-month period, down 57 percent from P8.6 billion a year earlier.
“The current COVID-19 crisis continues to disrupt and impact our organization in different ways. Throughout this, we have given significant attention to our ability to adapt to changes and to prepare for uncertainties,” said Aboitiz Group president and chief executive Sabin Aboitiz.
AEV recognized non-recurring losses of P20 million in the first half, versus the P78 million in non-recurring gains recorded in the previous year, representing foreign exchange losses from the revaluation of dollar-denominated assets.
It said that without these one-off losses, core net income in the first half reached P4 billion, down 54 percent from P8.9 billion a year ago.
Power accounted for 49 percent of the total income contributions from AEV’s strategic business units (SBUs), followed by banking and financial services with 39 percent, food with 14 percent, infrastructure with -1 percent and land with -1 percent.
“For the rest of the year, our goal is unchanged—to remain resilient and for our business units to be in the best possible position when we emerge from this crisis, in order to support the country’s economic recovery. As One Aboitiz, we will continue to be one with the nation in its fight against COVID-19,” Aboitiz said.
Aboitiz said he was looking forward to a better economy in the second half as the country slowly opened up and adapted to the new normal.
“As the nation continues to face challenges posed by the pandemic, we are optimistic about our growth strategy, and we remain fully committed to supporting economic recovery and delivering value to our customers and stakeholders, now and for the longer term,” said Aboitiz Power president and chief executive Emmanuel Rubio.
Aboitiz Power’s net income contribution to AEV decreased by 57 percent in the first half to P2.9 billion from P6.7 billion a year ago, on reduced demand resulting from the enforcement of COVID-related community quarantines and forced outages involving Pagbilao units 1 to 3, Therma South Inc. Unit 2, and GN Power Mariveles Coal Plant Ltd. Co. Unit 2.
AEV said these reductions offset the decrease in purchased power costs in the first half and revenues from Therma Visayas Inc. and Therma Mobile Inc. which were both online since January this year, as opposed to the second quarter last year.