Aboitiz Equity Ventures Inc., the holding company of the Aboitiz family, said Wednesday net profit fell 17 percent in the first nine months to P11.9 billion from P14.3 billion a year ago, dragged down by lower income from power and banking businesses.
“Despite the slight slide in profits, our strategic growth plans – whether at home or abroad – remain intact. Our recent foray into infrastructure through LRI [Lafarge Republic Inc.], for instance, represents an excellent opportunity to be involved in nation building and participate in the robust growth expectations in that sector,” AEV president and chief executive Erramon Aboitiz said in a statement.
Aboitiz Equity said the lower income in the nine-month period translated into P2.14 in earnings per share.
Power accounted for 75 percent of the total earnings, followed by banking and financial services, food and land strategic business units with 12 percent, 11 percent and 2 percent, respectively.
The company incurred a non-recurring loss of P623.2 million in the January-September period, a turnaround from last year’s gain of P379.6 million, which resulted from the revaluation of the power’s consolidated dollar-denominated liabilities and placements.
Aboitiz Equity said adjusting for one-off items, core net income dropped 10 percent to P12.5 billion in the first nine months.
Aboitiz Equity’s power arm Aboitiz Power Corp. recorded an 8-percent decline in consolidated net income to P12.2 billion from P13.2 billion a year earlier. The company’s core net income in the first nine months went down by 3 percent to P13 billion.
“The country’s rapidly unfolding growth story fuels our commitment to provide the Philippines with reliable, ample, and reasonably priced power with the least impact on our environment and our host communities, “ Aboitiz Power president and chief operating officer Antonio Moraza said.
Aboitiz Power started commercial operations of the first unit of its Therma South baseload plant in Davao while the second unit is expected to be commissioned by the first half of 2016.
Construction also commenced for the company’s 59-MW Negros solar energy project.
“Our solar venture with SunEdison in Negros Occidental aligns with our efforts to boost our portfolio nationwide with a balanced mix of renewable and non-renewable energy sources,” Moraza said.
Aboitiz Power’s attributable net generation rose 9 percent to 9,161 gigawatt-hours as of end-September from 8,395 gWh a year ago, as electricity sold through bilateral contracts, which made up 90 percent of total energy, increased 16 percent to 8,254 gWh.
Spot market sales decreased by 28 percent to 907 gWh from 1,266 gWh.
The power distribution group’s earnings share to Aboitiz Equity in the first nine months rose 6 percent to P2 billion.
Aboitiz Power is also pursuing overseas expansion in the power sector after it signed agreements to explore and develop a potential 110-MW geothermal plant with PT Medco Power Indonesia in East Java Province, Indonesia and a potential 127-MW hydropower generation project with SN Power AS and PT Energi Infranusantara along the Lariang River in Central Sulawesi, Indonesia.
“We will continue to pursue development and other suitable opportunities, both nationally and abroad. Our hydro and geothermal exploratory activities in Indonesia are strategic opportunities to leverage on our expertise and expand overseas via greenfield development and acquisition,” Moraza said.