MANILA, May 8 (PNA) — Listed conglomerate Aboitiz Equity Ventures posted a seven-percent increase in profit in the first quarter of 2015 on the back mainly of its power business.
Its net income reached PHP4.1 billion in January to March from PHP3.83 billion during the same period last year.
AboitizPower, which accounted for 79 percent of the conglomerate’s income, contributed PHP3.3 billion from previous year’s PHP3.2 billion.
When adjusted for non-recurring items, core net income declined by six percent to PHP2.7 billion from the previous PHP2.9 billion.
The drop is attributed to the lower sales registered by the Tiwi-Makban plants due to a decline in steam flow during the period as well as the implementation last February 2014 of the Binga plant’s new contract for ancillary services which resulted in lower average prices.
The generation group’s income contribution was also affected by the expiration of the Magat plant’s income tax holiday which took effect last July 2014.
AEV’s President and Chief Executive Officer Erramon Aboitiz said they are looking at expanding the power business to select international markets through new projects and acquisitions.
“We are also relentlessly exploring new sources of renewable energy to provide the country with the right mix of energy sources. As you know, we recently partnered with United States-based SunEdison to explore the development of up to 300 MW (megawatts) of utility-scale solar photovoltaic power generation projects in the Philippines over the next three years,” he said.
Aboitiz Equity said banking, food and land businesses contributed nine percent, 10 percent and two percent, respectively.
UnionBank’s first quarter income contribution decreased by 48 percent to PHP382 million from PHP730.6 million due to lower trading gains and foreign exchange losses.
Food subsidiary Pilmico posted a 23-percent rise in first quarter income contribution to PHP415.7 million, propelled by the remarkable performance of Feeds Philippines and Feeds Vietnam which offset the decline in the income from the farm and flour businesses.
Flour sales dropped due to the increase in the cost of raw materials, while farm sales were also hurt by an oversupply of hogs.
AboitizLand reported a 34-percent drop in core income contribution to PHP80.3 million from PHP121.1 million.
Further, Aboitiz said the Group remains bullish about its long-term growth prospects.
“We continue our growth story as the group pursues its expansion both organically and through acquisition opportunities both here and abroad. We have also added infrastructure and infrastructure-related businesses as our fifth business leg, and recently signed an agreement to design, build, and operate the country’s largest private bulk water supply project in Davao,” he added. (PNA)