Aboitiz Equity Ventures Inc. posted a net income of P10.1 billion in the first six months of 2018, down 2 percent from P10.3 billion year-on-year, on foreign exchange losses.
AEV said in a disclosure to the Philippine Stock Exchange the company recognized non-recurring losses during the period amounting to P467 million from last year’s losses of P495 million, representing net foreign exchange losses arising from the restatement of dollar-denominated net debt.
Power accounted for 68 percent of total income contributions, followed by banking and financial services (22 percent), food (6 percent), land (3 percent) and infrastructure (one percent).
“Our first-half results reflect challenges that continue to test the resilience of our diversified portfolio,” said AEV president and chief executive officer Erramon Aboitiz.
Net income of unit Aboitiz Power Corp. in the first half, meanwhile, reached P9.1 billion, down six percent from P9.7 billion recorded last year.
Aboitiz Power recognized non-recurring losses of P1.4 billion from last year’s losses of P744 million as a result of net foreign exchange losses.
Without the one-off losses, the company’s core net income was flat year-on-year at P10.5 billion.
Aboitiz Power recorded consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) of P24 billion in the first half, up 10 percent the P21.8 billion recorded last year.
“We continue to grow the business with the capacity additions and the expanding distribution business,” said Aboitiz Power president and chief executive officer Antonio Moraza.
“Energy sales are up; however, margins are getting tighter due to competition. This is a reality that we have prepared for—and our organization is equipped to compete,” Moraza said.
Union Bank of the Philippines’ income contribution to AEV in the first six months, meanwhile, increased nine percent to P2.3 billion from P2.1 billion.
On a stand-alone basis, UnionBank and its subsidiaries posted a net income of P4.7 billion in the first half, up 9 percent from P4.3 billion earned on the year.
Pilmico Foods Corp. and its subsidiaries registered a net income of P662 million in the first half, down eight percent from P717 million on year, due mostly to higher raw material costs.