In 2015, your company posted a consolidated core net
income of P18.3 billion, a 2% increase from the prior
year’s figure. This core income translates to earnings
per share of P3.29, and a Return on Shareholders’
Equity of 18%. Total core earnings contributions from
AEV’s strategic business units came from power, which
accounted for 74%, followed by banking at 13%, food
at 9%, land at 3%, and infrastructure at 1%.
Consolidated EBITDA (Earnings Before Interest, Taxes,
Depreciation, and Amortization) rose by 5% year-on-year
to P40.2 billion. Beneficial EBITDA, a more meaningful
metric for us, increased by 8% to P35.4 billion. By the
end of the year, cash balances stood at P63.6 billion.
For 2016, we have budgeted about P58.4 billion in
capital expenditures (capex), compared to the P38.7
billion in 2015. The bulk of this year’s capex will once
again go to AboitizPower’s continuing efforts, together
with its partners, to increase total capacity to 4,000 MW
by 2020. UnionBank will upgrade its infrastructure to
enable its digital banking ambitions while it continues
to expand its branch network, a similar thrust being
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undertaken by our newest remittance business,
PETNET. Pilmico's initiatives will expand its customer
reach in ASEAN while diversifying operations in the
country. AboitizLand will acquire more industrial and
residential land, as it continues to expand its business
outside of Cebu, and onto the national arena.
The domestic economy saw another year of robust
growth under a low interest-rate environment, and
the Aboitiz Group successfully tapped the debt capital
markets to fund its own growth initiatives. In 2015,
we completed several debt transactions, the most
significant being our P24-billion retail bond issuance
- the largest ever issued for the Group, and the third
largest issued in the Philippines.
Despite all the additional debt, your company’s
balance sheet remains strong, with relatively low
gearing. At year-end 2015, net-debt-to-equity stood
at only 0.7x, with net-debt-to-EBITDA at 1.7x. AEV’s
consolidated debt maturity profile is well within the
parameters we have set to mitigate liquidity and
refinancing risk over the remaining life of this debt.
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