Aboitiz Equity Ventures Posts 27% 2016 Profit Growth

Philippine Stock Exchange (PSE)-listed Aboitiz Equity Ventures Inc (PSE:AEV) disclosed that its consolidated net income in 2016 increased by 27 percent to P22.5 billion (US$446 million) from P17.7 billion a year earlier.

The solid 2016 net income report sent Aboitiz Equity Ventures’ stock (PSE:AEV) gaining 0.95 percent in today’s trading to end the day at P73.20 a share. The P22.5 billion net income translates to P4.02 in earnings per share.

In a disclosure, AEV said power accounted for 65 percent of its full-year profit, followed by the Banking and Financial Services, Food, Infrastructure, and Land strategic business units (SBUs) with income contributions of 21 percent, 7 percent, 7 percent and 1 percent, respectively.

“Through our value creation efforts, we are poised to take advantage of the tailwind our growing economy brings. The gains we recorded over 2016 affirm the soundness of our business strategy of creating a diversified income stream,” said Erramon I. Aboitiz, AEV President and Chief Executive Officer.

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For the period ending December 31, 2016, the company incurred a non-recurring loss of P347 million (versus the previous year’s loss of P602 million), which mainly resulted from the mark-to-market revaluation of the Power BUs’ consolidated dollar-denominated assets and liabilities refinancing costs and goodwill impairment, partly offset by the net forex (foreign exchange) gains from revaluation of dollar-denominated assets and liabilities.

Adjusting for these one-off’s, AEV’s core net income amounted to P22.8 billion, which was 25% higher than last year.

Aboitiz Power Corporation’s (AboitizPower) income contribution to AEV increased by 14% YoY, from P13.5 billion to P15.4 billion.

On a stand-alone basis, AboitizPower’s income performance recorded a 14% YoY increase, from P17.6 billion to P20.0 billion.

The generation business accounted for 82% of earnings contributions from AboitizPower’s business segments, recording an income share of P16.3 billion for 2016, up 17% YoY. The growth was largely driven by Therma South’s new contribution.

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The power distribution group’s earnings share for 2016 decreased by 4%, from P3.8 billion to P3.7 billion. This is equivalent to 18% of earnings contributions from AboitizPower’s earnings. – BusinessNewsAsia.com

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