Aboitiz end-Sept income more than doubles to ₱19.5B

Metro Manila (CNN Philippines, November 2) — Aboitiz Equity Ventures on Tuesday reported higher earnings as of end-September, as its businesses enjoyed stronger performances during the nine-month period.

In a disclosure to the local bourse, the conglomerate declared a net income of ₱19.5 billion for the January to September period – higher than last year’s ₱8.3 billion.

“The Company recognized non-recurring gains of ₱83 (million), versus the ₱5 (million) in non-recurring losses recorded during the same period in 2020, which were primarily due to the revaluation of dollar-denominated assets,” read the filing.

Aboitiz Power Corp. reported a net income of ₱15.7 billion – up from last year’s ₱7 billion.

This is due to commissioning revenue from GNPower Dinginin Ltd. Co. Unit 1, higher water inflow from its power plants, higher availability of Therma Luzon, Therma South, and Therma Visayas facilities, along with “higher WESM dispatch in compliance with the must-offer rule,” the disclosure stated.

AEV noted that AboitizPower was also able to claim liquidated damages for the delay in GNPD Unit 1’s construction, adding it also received final payment for business interruption claims due to outages of GNPower Mariveles Energy Center Ltd. And AP Renewables Inc. in past years.

Union Bank of the Philippines and its subsidiaries posted a ₱10.4 billion net income for the said nine months, compared to last year’s ₱8.5 billion.

The bank reported a 3% growth in net interest income and 22% in non-interest income for the period – attributing it to strong trading gains in the first half of 2021 along with higher foreign exchange income, fees and commissions.

UnionBank also saw loan loss provisions plummet by 45% year-on-year to ₱4.1 billion – with bad loans already stabilizing, the conglomerate said. The bank now has a non-performing loan ratio of 4.9% – down from 5.1% from end-2020.

Aboitiz Land Inc. and its subsidiaries, meanwhile, logged earnings of ₱646 million for the nine-month period – surging from ₱85 million during January to September last year.

Aboitiz Land contributed ₱2.9 billion in revenues as of end-September – 34% higher from 2020 driven by increases in sales and construction and site development activities.

Republic Cement & Building Materials Inc. contributed ₱1.4 billion to AEV’s income for the three quarters, also up from ₱400 million last year. The group attributed the growth to stronger market demand from residential and infrastructure customers, along with capital investments which “resulted in increased overall efficiency.”

The infrastructure firm likewise enjoyed a one-time gain from the CREATE law, reducing its deferred tax liabilities.

Food businesses Pilmico Foods Corp., Pilmico Animal Nutrition Corp., and Pilmico International Pte. Ltd. logged an income contribution of ₱1.5 billion for the period -—growing from ₱969 million from the same timeframe last year.

The farms business segment saw net income reach ₱385 million for the said quarters, shifting from a ₱703-million loss from the similar period last year. On the other hand, the feeds and flour business segments logged lower incomes of ₱1 billion and ₱283 million, respectively, amid higher costs.

AEV shares last traded at ₱49.70 apiece on Tuesday — up 2.69% from yesterday’s close.