Aboitiz Equity Ventures Inc. said Friday net income grew 9 percent in the first nine months to P21.4 billion from P19.5 billion in the same period in 2021.
The conglomerate said it recognized non-recurring gains of P5.3 billion due to foreign exchange gains from the revaluation of US dollar cash and liquid financial instruments in the nine-month period.
It said that without these one-off gains, core net income in the first nine months reached P16.1 billion, representing a decline of 17 percent year-on-year.
Meanwhile, AEV’s board authorized the increase in fixed-rate peso-denominated retail bond issuance to P20 billion from P12 billion.
The bonds will be composed of a base issue size of P8 billion, with an oversubscription option for another P12 billion.
AEV said the P7.45-billion retail bonds would come from the balance of the company’s P30-billion shelf-registration program approved by the Securities and Exchange Commission in 2019 and P12.55 billion from the P30-billion new shelf-registration program being processed by the SEC.
“The increase in the oversubscription option allows for greater flexibility amidst robust liquidity in the capital markets,” the company said.
It said the proceeds would partially fund AEV’s equity contribution to wholly-owned subsidiary Aboitiz InfraCapital Inc., which it would use to acquire an interest in GMR-Megawide Cebu Airport Corp. and for the repayment of certain outstanding bonds.
The bonds are expected to be offered in the fourth quarter, subject to market conditions. AEV intends to list the bonds with the Philippine Dealing and Exchange Corp.
AEV’s net income went up by 57 percent in the third quarter to P9.6 billion from P6.1 billion in the corresponding period in 2021. Core net income in the third quarter reached P7 billion, a 20-percent increase year-on-year.
“As we move closer toward wrapping up a transformative year for the Aboitiz Group, our transition into the Philippines’ first ‘techglomerate’ has much to show for, not just in the latest figures of our financial performance, but more importantly in the significant cultural transformation currently taking place among our team members and the ways they work together,” Aboitiz Group president and chief executive Sabin Aboitiz said.
“We will continue to invest substantially and strategically in innovation, but it has always been our investment in people that have yielded the most returns,” said Aboitiz.
Power accounted for 58 percent of the total income contributions from AEV’s strategic business units in the first nine months, while financial services accounted for 29 percent.
Real estate contributed 10 percent to income, while infrastructure and food contributed 1 percent each.