AEV reports P1.4-billion net income in 1st quarter

MANILA, Philippines – Aboitiz Equity Ventures, Inc. (AEV), the listed holding firm of the Aboitiz family, posted a net profit of P1.4 billion in the first quarter this year, 20 percent higher than the previous level.

Aside from a foreign exchange loss of P83 million at the parent and subsidiary levels, AEV realized a non-recurring income of P633 million resulting from a P575 million reversal of impairment provision to adjust the carrying amount of the assets of Aboitiz Transport System Corp. in consideration of the termination of the planned sale of ATSC and a P58-million booked revenue.

The booked revenue represents the option money paid to AEV for the planned sale of ATSC.

AEV said 38 percent of its total earnings came from power with 18 percent coming from food with 13 percent from the transport business.

Aboitiz Power contributed P290 million, down 62 percent from a year ago. When adjusted for non-recurring items, the group’s net earnings fell to P373 million.

Lower net generated power and softer prices, particularly for AP’s merchant hydropower plants, resulted in P84 million in earnings contribution from the power generation business, which is 83 percent lower.

As of end-March this year, Aboitiz Power generated a total capacity of 578 megawatts or an increase of 18 percent year-on-year due to the turnover of the 175-MW Ambuklao-Binga hydropower plants in July 2008.

The power distribution group’s electricity sales, on the other hand, rose 14 percent from 744 Gwh to 772 Gwh due to higher power consumption of both residential and non-residential customers.

Meanwhile, the financial services group chipped in P242 million, up four percent from P232 million the previous level. Union Bank of the Philippines contributed P229 million while City Savings Bank registered a net income of P13 million.

The transport group reported a turnaround in its financial performance as it posted a net income of P103 million compared with the P22 million loss incurred in the same period a year earlier. This was attributed to a 34 percent reduction in fuel costs, improved asset utilization and freight and passage capacity, and the development of the value added business.