AEV net income up 40% to P2.2 billion

Visayas-based conglomerate Aboitiz Equity Ventures Inc. (AEV) posted a banner year in 2002 with a 40-percent hike in net income to P2.2 billion, a company official informed the Philippine Stock Exchange.

AEV corporate secretary Eugeniano Perez III said the higher income was mainly driven by the strong contribution of the flagship power units, led by Aboitiz Power Corp. (APC) which turned in P1.7 billion in profit last year.

Perez said the healthy financial performance of the company enabled it to declare about P505 million in cash dividends given to its stockholders in June 2002, as well as to acquire controlling interest in domestic shipping firm WG&A and food unit Fil-Am Foods.

APC remained the biggest income source contributing 46 percent more than the 2001 level, mainly due to the improved output of its distribution utilities and higher control of operating expenses.

AEV’s banking subsidiaries also contributed heavily to the conglomerate’s bottom line with a combined contribution of P513 million, up 32 percent from the previous year. UnionBank of the Philippines contributed P503 million which was 33 percent more than the previous year while City Savings Bank contributed the remaining P10 million."

UBP attributes its performance to a strong growth across its businesses particularly in capital market activity, private banking, cash management and retail banking," Perez pointed out.

In the transport sector, AEV’s similar buyout of its partners in WG&A last September 2002 is expected to contribute heavily to 2003 earnings. With a combined net income of P214 milllion, the AEV transport group made a substantial 304-percent surge in earnings contribution, with WG&A pumping in P416 milllion and SuperCat Fast Ferry Corp. adding P18 million. – Conrado Diaz Jr.