Aboitiz Equity's profit drops 12 pct in 2013

Posted at 03/12/2014 12:57 PM | Updated as of 03/12/2014 12:57 PM

MANILA, Philippines - Aboitiz Equity Ventures on Wednesday reported its consolidated net income dropped 12 percent to P21 billion in 2013, from P23.97 billion in 2012, as it recorded lower power income and foreign exchange losses.

In a disclosure to the stock exchange, AEV said its consolidated net income declined 24% to P4.5 billion in the October to December period.

For the full-year 2013, AEV said the revaluation of consolidated dollar-denominated liabilities and placements resulted in a non-recurring loss of P1.43 billion.

"On the other hand, a one-time net gain was also recognized by the Power SBU primarily due to the step acquisition of a subsidiary. AEV's share in this amounted to P161.4 million. The company also booked gains of P1.29 billion from the sale of City Savings Bank. Adjusting for these one-offs, AEV's core net income amounted to P21 billion, reflecting a decrease of 10% versus last year," the company said.

Aboitiz Power Corp. said its income contribution fell 24% to P14.2 billion in 2013,from 2012's P18.8 billion.

The generation group reported its earnings fell 33% to P11.7 billion for the full year, due to lower margins at the Pagbilao plant, higher fuel costs due to the implementation of the geothermal resource supply contract for the Tiwi-Makban plants and lower ancillary sales by the Magat plant.

On the other hand, the power distribution group’s earnings rose 14% to P2.5 billion in 2013, from P2.2 billion due to improvement in volumes and margins.

Union Bank of the Philippines' income contribution increased 7% to P4.1 billion in 2013, due to a 19% jump in net revenues.

AEV's food unit Pilmico Foods Corp. contributed 3% lower earnings of P1.3 billion in 2013. This was attributed to weaker performance of the feeds division, as input costs went up.

Aboitiz Land, on the other hand, reported a consolidated net income contribution of P273.5 in 2013. Total revenues hit P1.8 billion last year, mostly from the residential segment.