Aboitiz Group Q1 profit down on lower power, bank earnings

MANILA, Philippines – Aboitiz Equity Ventures Inc. (AEV), the holding firm of the Cebu-based Aboitiz family, saw a 29% decline in its first-quarter earnings due to lower contributions from its power and banking units.

In a disclosure to the Philippine Stock Exchange on Wednesday, May 7, AEV said it recorded a consolidated net income of P4.9 billion in January to March.

It said power unit Aboitiz Power Corporation, which accounted for 73% of the income, contributed P2.7 billion, a 9% decrease from the previous year’s P3.5 billion.

“The adverse impact on earnings was mainly attributable to the higher fuel cost brought about by the implementation of the Geothermal Resource Sales Contract for the Tiwi-Makban,” AEV said.

It added, “The generation group’s income contribution for the quarter could have been higher if not for the expiration of the Pagbilao plant’s income tax holiday.”

Banking unit Union Bank of the Philippines, on the other hand, contributed P730.6 million, down 59% from P1.8 billion last year. The fall was “largely in view of the exceptionally higher trading gains posted in the first quarter of 2013.” Union Bank accounted for 16.6% of the group’s income.

AEV’s food and real estate subsidiaries, meanwhile, turned in higher contributions. Pilmico Foods Corporation posted a 4% annual increase in income contribution to P338.6 million from P325.2 million. Aboitiz Land Inc. registered a 181% growth to P121.1 million from P43.1 million. – Rappler.com