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MANILA, Philippines – Earnings of the Aboitiz family’s holding company fell in the first half from a year ago on the weak performance of Its power and banking businesses.
Aboitiz Equity Ventures’ (AEV) consolidated net income fell 20% in January to June from a year ago to P9.5 billion ($218.70 million), the company told the Philippine Stock Exchange in a disclosure Thursday, July 31. Minus one-time gains and charges, core net income dropped 26% to P8.7 billion ($200.27 million).
AEV’s power subsidiary accounted for bulk of the earnings, with a share of 76%. Banking came next with 16%; food, 7%; and property, 1%.
In the second quarter alone, AEV’s consolidated net income amounted to P4.6 billion, down 9% from the same quarter of 2013. Core net income fell 30% from previous year to P4.3 billion ($98.99 million).
Power business down
Aboitiz Power Corporation’s net income in the first semester dropped 6% to P8.9 billion ($204.74 million) from P9.5 billion ($218.54 million) last year.
Core net income likewise fell 21% to P8.6 billion ($197.84 million) from P10.9 billion ($250.74 million) . According to a company statement, the drop was due to a “one-off” adjustment.
The dip in Aboitiz Power’s earnings does not affect the company’s confidence in the power industry, its president and chief executive officer Erramon Aboitiz said, citing the company’s over P80 billion ($1.84 billion) capital expenditure budget this year.
“We remain firmly committed to meeting the country’s growing power requirements and offering competitive solutions to our customers,” Aboitiz said.
Its generation business registered an income share of P7.6 billion ($174.86 million), down 6% from the first half of 2013.
The power firm’s distribution business contributed P1.4 billion, down 11% on year. Spearheaded by the growth in industrial sales, total attributable electricity sales increased 6% to 2,122 gigawatt-hours (GWh) from 1,997 GWh.
“We are on track with making sure we increase our power capacity by an additional 2,000 MW over the next 5 years, amid the challenges of tightening supply,” said the Aboitiz official.
Banking down, food, property businesses up
Meanwhile, significantly lower trading gains brought down the earnings contribution of Union Bank of the Philippines by 46% to P1.5 billion ($34.53 million) in the January to June period from P2.80 billion ($64.46 million) a year ago.
Aboitiz Land’s consolidated net income contribution surged 63% to P181.30 million ($4.17 million) from P111.10 million ($2.56 million), thanks to higher sales and the consolidation of recently acquired industrial estate operator LiMA Land Inc. The real estate business was the biggest gainer among AEV’s businesses.
Pilmico Foods Corporation registered a 3% year-on-year increase in profit contribution to P647.80 million ($14.91 million) in the 6-month period from P630.70 million ($14.52 million) in 2013 as the strength of the farms and flour division offset the weakness in the feeds segment. – Rappler.com
*($1 = 43.45)