Aboitiz Equity Ventures’ First Quarter Income at Php 4.1 Billion Tweet Save Share

Aboitiz Equity Ventures reported a net income of Php 4.1 billion in the first quarter of 2015, 16% lower than the previous year. Core income also stood at the same figure of Php 4.1 billion, down by 7% from a year ago.

Of the total contribution, the power group provided the bulk at 79%, equivalent to Php 3.3 billion and higher by 4% from the previous year. But when adjusted for non-recurring items, AboitizPower posted a 1% slip in its earnings to Php 3.3 billion from Php 3.4 billion in the first quarter of 2014.  This was due to the weaker performance of the geothermal and large hydro units.

Food subsidiary Pilmico contributed Php 416 million, 23% higher than the same period last year, as the strong performance of the Feeds division helped offset the weaker performance of the Flour and Farms divisions. The net income after taxes  (NIAT) of Feeds Philippines  went up by 70% from Php 86 million to Php146 million, while Feeds Vietnam contributed Php 32 million.  Pilmico acquired a 70% stake in Vinh Hoan 1 Feed JSC (VHF) for US$28 million in 2014.

Banking unit, UnionBank, brought in Php 382 million, 48% lower from the same quarter in 2014, due to lower trading gains and foreign exchange losses. Net interest income was also flat at Php 2.5 billion on high average costs of interest bearing liabilities.

While AboitizLand posted a 34% decline in its net income contribution to Php 80 million. This is due to the higher manpower cost brought by the ongoing organizational expansion and last year’s higher base, when Lima Utilities Corporation was still part of AboitizLand.  Lima Utilities was sold to AboitizPower in the second quarter of 2014.

Moving forward, the Group looks at infrastructure as the fifth leg of its business, and would like to capitalize on this growth area through Public-Private Partnerships and selective acquisition opportunities.

The Group recently forged a joint venture between AEV and JV Angeles Construction Corporation (JVACC) called Apo Agua to supply up to 300 million liters per day of potable water to the Davao City Water District (DCWD). The venture is the country’s biggest bulk water supply agreement to date.

AEV also joined the Team Trident consortium with Ayala Land, SM Prime Holdings, and Megaworld to bid for the Php 123 billion Laguna Lake Expressway-Dike Project, and has signed an Exclusivity Agreement with CRH plc to potentially acquire a majority stake in Lafarge’s Philippine cement operations.

Additionally, the Group through a consortium with SMRT International, is looking at bidding for the LRT2 & Masinag Extension systems and have also expressed interest to bid for the operations, maintenance and expansion of several regional airports.

The Group remains on expansion mode, and will continue to explore opportunities both locally and overseas.

“We continue our growth story as the group pursues its expansion both organically and through acquisition opportunities both here and abroad”, said AEV President and CEO Erramon Aboitiz.

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