ABOITIZ Equity Ventures, Inc. (AEV) reported a 64% decline in core net income to P3.2 billion in the first quarter as its business units grew more slowly during this period.
Including consolidated items, consolidated net income fell 54% to P3.9 billion in the first three months of 2022, it added.
The company acknowledged P766 million non-recurring gains during the period, primarily due to foreign exchange gains from the revaluation of dollar-denominated assets, compared to P211 million recurring losses for the same period in 2021, the AEV said in a statement. Wednesday.
Earnings before interest, tax, depreciation and repayment (EBITDA) were also 28% lower than P13 billion a year.
Excluding unusual items such as liquidated losses, business disruption claims, typhoon audits, improved disruptions, as well as extraordinary business profits, net income in the first quarter was 4% lower than in the same period in 2021.
“2022 began with a strong optimism that the reopening of the border, the resumption of travel and the reduction of cases through vaccinations would come out of the epidemic – leading to an economic recovery in the first quarter,” said AEV President and CEO Sabine M. Abbottis said in a statement.
Mr Abbottis said that although there were new global obstacles to the ongoing conflict in Ukraine, the group was ready to tackle the uncertainty through its “agile and resilient process and mentality that was deeply embedded in our organization long before the epidemic.”
AEV’s energy company, Aboitiz Power Corp., accounted for 41% of total revenue from business units, followed by financial services 36%, food 14%, real estate and infrastructure 4% each.
AboitizPower’s net income for the quarter fell 53% to P2.9 billion from P6.2 billion in the same period a year earlier.
The Energy Unit has acknowledged a recurring loss of P22 million during this period, compared to a recurring loss of P29 million in the same period in 2021, primarily due to the revaluation of dollar-adjusted liabilities.
The firm noted that one year ago, its main net income was GNPower Dinginin Ltd. Co. for Compensation for Construction Delays and GNPower Mariveles Energy Center Ltd. Co included plant disruption claims for plant disruptions.
“AboitizPower hit the first quarter of 2022 with a disturbance related to Typhoon Odet, and the country had to move ahead with the planned disruption in anticipation of the 2022 national election,” AEV said.
It added that if AboitizPower excluded these recurring items and events, “the first quarter of 2022 would see a 4% reduction in consolidated net income compared to the same period in 2021.”
In the first quarter, the manufacturing and retail power supply business fell 47% to P3.2 billion, accounting for 81% of AboitizPower’s total revenue contribution.
The sales capacity for this period has increased by 1% to 3,534 MW (MW) as compared to 3,558 MW sold in the same period last year.
Meanwhile, sales of 6,055 gigawatt-hours (GWh) fell 1% in the first quarter, compared to 6,130 GWh in the same period last year.
AboitizPower’s distribution business segment recorded revenue of P742 million, or 32% less in the first quarter. The segment accounts for 19% of the total revenue contribution.
Meanwhile, AEV’s banking and financial units also grew less.
Unionbank of the Philippines and its affiliates recorded P2.6 billion net income in the first three months, down 45% year on year.
“This is due to the remarkable trading gains recorded in the first quarter of 2021,” AEV said.
Meanwhile, recurring revenue increased P9.4 billion, up 21% year on year due to higher net interest income and fee income. Net interest income rose 12% to P8.1 billion due to higher yields on earnings assets, as well as lower spending of funds from the expansion of its current account and savings account or CASA deposit.
“On the other hand, higher InstaPay and exchange fees have led to an increase in fee revenue,” AEV said.
Loan-loss provision decreased by 78% to P504.5 million while the non-performing loan or NPL ratio remained stable at 5.2% till the end of March this year.
UnionBank’s earnings performance in the first quarter resulted in 9% equity and 1.2% return on assets.
AEV’s unlisted food subsidiaries are Pilmico Foods Corp., Pilmico Animal Nutrition Corp., and Pilmico International Pte. Ltd. reported lower net income during this period.
The agribusiness component, comprising the regional animal nutrition business, earned P211 million or 37% less than the P334 million recorded in the same period of 2021.
The AEV said the devaluation of the Sri Lankan rupee was due to recognition of unrealistic foreign exchange losses.
In the real estate segment, Aboitiz Land, Inc. And its affiliates with Lima Land, Inc. reported a 48% increase in consolidated net income to P390 million.
On the stock exchange, AEV shares fell 2.85% or from P1.60 to P54.50. – Luisa Maria Jacinta c. Jackson