Forex losses drag down AEV profit
Aboitiz Equity Ventures Inc. reported a 14 percent drop in its third quarter profit to P5.6 billion, largely due to foreign exchange losses and the weak performance of its banking units.
The Cebu-based holding company booked non-recurring losses of P720 million, more than six times the P117 million loss incurred the previous year.
Without the one-off losses, core net income for the quarter was 5% lower year in year to P6.4 billion.
AEV’s net income in the nine months ended September fell seven percent to P15.9 billion
Aboitiz Power Corp. contributed P12.1 billion to AEV’s total net earnings, four percent more than the year ago.
On a stand-alone basis, AboitizPower’s net income increased by only four percent to P15.7 billion, dragged down by forex losses resulting from the restatement of dollar-denominated debt and pre-termination costs on the refinancing of its subsidiary, GNPower Mariveles Coal Plant Ltd. Co.
The generation business accounted for 80% or P14 2 billion of AP’s total earnings. Capacity sold increased 39% to 3,112 MW, mainly driven by the addition of GNPower-Mariveles and the higher generation of the hydro units
Union Bank of the Philippines and its subsidiaries reported a consolidated net profit of P6.4 billion, down 22 percent on lower trading income.