Aboitiz Equity Ventures Inc. said Wednesday it posted a net income of P8.3 billion in the first three quarters, or 47 percent lower than P15.7 billion it booked in the same period last year.
The company said in a disclosure to the stock exchange that it recognized non-recurring losses of P5 million in the nine-month period, compared to the P155-million non-recurring losses in the previous year.
It said that without these one-off losses, core net income in the first nine months reached P8.3 billion, 48 percent lower than P15.9 billion in the same period last year.
"The first nine months of the year brought about unprecedented challenges that truly tested the resilience of the nation and the Aboitiz Group as well. We saw some signs of recovery in the third quarter, but we will continue to operate with caution and focus on providing the country with the services it needs to cope and recover,” said Sabin Aboitiz, president and chief executive of Aboitiz Group SBUs.
AEV recorded a consolidated net income of P4.4 billion in the third quarter, down by 35 percent from P6.8 billion in the corresponding period in 2019.
Core net income in the third quarter also reached P4.4 billion, down 37 percent from a year earlier.
Power accounted for 49 percent of the total income contributions from AEV’s strategic business units in the first nine months, while financial services accounted for 39 percent.
Income contributions from food, infrastructure and real estate SBUs were at 9 percent, 3 percent and 1 percent, respectively.
“Digital innovation played an important role in helping us cope with this year’s challenges, and will continue to enable us in the future. The Aboitiz Group will continue to support the government in addressing our country’s needs under a ‘better normal.’ As One Aboitiz, it is important that we stay agile, self-motivated, and collaborative moving forward in order to advance business and communities and create long-term value for all our stakeholders," Aboitiz said.
Aboitiz Power Corp. posted a net income P7 billion in the nine-month period, down by 48 percent from P13.5 billion recorded in the previous year.
The company recognized non-recurring net gains of P528 million during the period, compared to non-recurring net losses of P220 million last year because of net foreign exchange gains on the revaluation of dollar-denominated liabilities.
Without the one-off gains, Aboitiz Power’s core net income in the first nine months reached P6.5 billion, or 53 percent lower than P13.7 billion in the same period last year.
Aboitiz Power said its lower income was due to lower demand resulting from the enforcement of COVID-related community quarantines and lower water inflow.
The company recorded additional tax expenses following the expiration of the income tax incentives of Therma South Inc. and GN Power Mariveles Energy Center Ltd. Co. and additional interest expenses from bonds and loans that were availed of in the fourth quarter of 2019.
“The pandemic has significantly impacted our financial performance, but we have sustained the delivery of the much-needed energy products and services to our customers and our communities. We continue to carry out our initiatives to ensure the availability, reliability, and efficiency of our power plants and distribution units. Despite the challenges and uncertainties, our growth strategy for the next 10 years remains the same — to significantly grow our renewables portfolio and shift our overall energy mix into an almost 50:50 Cleanergy and thermal capacities by 2030,” Aboitiz Power president and CEO Emmanuel Rubio said.
AboitizPower’s generation and retail supply business recorded earnings before interest, taxes, appreciation and depreciation of P24.9 billion in the first nine months, or 13 percent lower than P28.7 billion in the same period last year.
Capacity sold in the first three quarters increased by 9 percent to 3,394 megawatts from 3,123 MW in the same period last year on higher contracting levels driven by the new capacity of Therma Visayas Inc. and additional portfolio contracts.
Despite the increase in contracting levels, the lower demand brought about by the pandemic and the prolonged outage of TSI resulted in an 8-percent decline in energy sold in the first nine months to 16,689 gigawatt-hours from 18,083 gWh.
Aboitiz Power’s distribution business recorded EBITDA of P5.8 billion, or 3 percent lower than P6 billion in the same period last year.
Energy sales decreased by 8 percent to 3,994 gWh in the first three quarters from 4,341 gWh in the corresponding period in 2019 on lower energy consumption from the commercial and industrial customers.
Union Bank of the Philippines and subsidiaries recorded net income of P8.5 billion in the first nine months, down by 1 percent from P8.6 billion year-on-year on higher provisions for loan losses for 2020.
AEV’s non-listed food subsidiaries’ (Pilmico Foods Corp., Pilmico Animal Nutrition Corp. and Pilmico International Pte. Ltd. which includes Gold Coin Management Holdings Pte. Ltd.) reported net income amounting to P585 million in the first three quarters.