Aboitiz Equity Ventures (AEV) reported a net income of PHP8.3 billion from January to September this year, 47% lower than the PHP15.7 billion recorded during the same period last year.
The company recognized non-recurring losses of PHP5 million, versus the PHP155 million in non-recurring losses recorded during the same period in the previous year. Without these one-off losses, AEV’s core net income for the first nine months of 2020 was PHP8.3 billion, 48% lower than the PHP15.9 billion recorded in the corresponding period last year. AEV recorded consolidated EBITDA of PHP38.8 billion during the first nine months of 2020, a 13% decrease from the PHP44.8 billion recorded in the same period last year.
Power accounted for 49% of the total income contributions from AEV’s Strategic Business Units (SBU) during the first three quarters of 2020, while Banking and Financial Services accounted for 39%. Income contributions from Food, Infrastructure, and Land SBUs were at 9%, 3%, and 1%, respectively.
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.
Moving forward, we expect our environmental, social, and governance initiatives will help us achieve our targets by the end of the decade and in the years to come. 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.
– Sabin M. Aboitiz, President & CEO, Aboitiz Group
POWER
Aboitiz Power Corporation’s (AboitizPower) net income contribution to AEV for the first three quarters of 2020 decreased by 48% YoY, from PHP10.4 billion to PHP5.4 billion.
On a stand-alone basis, AboitizPower’s core net income for the first nine months of 2020 was PHP6.5 billion, 53% lower than what was recorded in the same period last year. Including non- recurring gains of PHP528 million, AboitizPower’s net income for the first three quarters of 2020 was PHP7.0 billion, 48% lower YoY.
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.
– Emmanuel V. Rubio, President & CEO, AboitizPower
BANKING AND FINANCIAL SERVICES
The income contribution of Union Bank of the Philippines (UnionBank) to AEV for the first three quarters of 2020 amounted to PHP4.3 billion, 2% higher than the PHP4.2 billion recorded in the same period last year.
On a stand-alone basis, UnionBank and its subsidiaries recorded net income of PHP8.5 billion in the first nine months of 2020, 1% lower than the PHP8.6 billion recorded in the corresponding period last year. This was mainly due to higher provisions for loan losses set aside for 2020. Net interest income grew to PHP21.4 billion, 36% higher YoY, due to higher earning assets and margins compared to the same period in 2019, while non- interest income was PHP10.4 billion, up 26% YoY, mainly due to higher trading gains.
FOOD
AEV’s non-listed food subsidiaries’ (Pilmico Foods Corporation, Pilmico Animal Nutrition Corporation, and Pilmico International Pte. Ltd. — which includes Gold Coin Management Holdings Pte. Limited) income contribution to AEV amounted to PHP969 million for the first three quarters of 2020, 5% lower than the PHP1.0 billion recorded in the same period in 2019.
LAND
AEV’s non-listed real estate businesses, comprising AboitizLand, Inc. (AboitizLand) and its subsidiaries, reported a consolidated net income of PHP85 million for the first nine months of 2020,90% lower than the PHP829 million in income recorded in the same period last year.
AboitizLand contributed PHP2.1 billion in revenues for the first three quarters of 2020, 2% higher than revenue contributions from the same period in 2019. Of AboitizLand’s revenue for the first three quarters of 2020, the residential business unit contributed PHP715 million, the commercial business unit contributed PHP159 million, while the industrial business unit and other subsidiaries contributed the remaining PHP1.3 billion, equivalent to 33%, 7%, and 60%, respectively.
INFRASTRUCTURE
For the Infrastructure group, Republic Cement & Building Materials, Inc. reported a net income of PHP400 million to AEV for the first nine months of 2020, 37% lower compared to the PHP631 million in net income recorded during the same period last year. This negative variance was mainly due to the contraction in the demand for cement as COVID-19 dramatically slowed down construction activities, particularly during the enforcement of COVID-related community quarantines.
