MANILA, Philippines - A stronger performance of the power generation business carried the profits of Aboitiz Equity Ventures Inc. (AEV) to a hefty growth last year.
Consolidated net income of the investment vehicle of the Aboitiz family hit P23.9 billion, up 13 percent from a year ago.
Core earnings, which strips off non-recurring gains or losses, went up 12 percent to P23.4 billion last year.
The power business accounted for bulk of earnings or 78 percent, followed by banking (16 percent), food (five percent) and other investee companies including the newly-acquired property subsidiary (one percent).
Income contribution of Aboitiz Power Corp. (AP) jumped to P18.8 billion from P16.5 billion last year.
“With a growing economy comes an increased demand in energy,†said AEV CEO Erramon Aboitiz.
“Reliable and affordable supply of power will be critical in sustaining long term economic growth for the country as a whole,†Aboitiz said, adding that AP and its partners will invest P85 billion for building new power plants across the Philippines in the next few years.
AP grew its earnings contribution due to higher average selling price and net generation last year.
Net power generation rose 13 percent from 10,660 gigawatt-hours (gwh) from 9,422 gwh mainly through the 17-percent increase in power sales through bilateral contracts.
AP’s attributable sales hit 1,547 megawatts (MW), up nine percent from 1,413 MW a year ago given the rising capacity sales through bilateral contracts.
The financial service business, for its part, registered an income contribution of P3.9 billion, 12 percent higher than the P3.4 billion the previous year.
Union Bank of the Philippines contributed P3.3 billion to AEV’s profits due to higher net interest income and hefty trading gains, the company said.
AEV’s non-listed thrift bank, City Savings Bank, contributed P520 million in earnings, lower by two percent from a year ago due to the lender’s ongoing expansion program that led to a 28-percent increase in operating expenses.
Subsidiary Pilmico Foods Corp. grew its income contribution by five percent to P1.3 billion due to higher overall sales in the flour, feeds and farm divisions.
AEV expects a better year for 2013 through numerous expansion programs.
“AEV will ride on the back of what many expect to be a strong Philippine economy, so we remain optimistic of the company’s continued long-term success and growth,†Aboitiz said.