Business

Power unit drags down AEV profit

Holding firm Aboitiz Equity Ventures Inc. reported a 55% fall in first half profit to P4 billion, weighed down by the lackluster performance of its power concern.

From non-recuring gains of P78 million last year, AEV booked P20 million in non-recurring losses, reflecting foreign exchange losses from the revaluation of dollar-denominated assets.

Aboitiz Power saw its net income decline by 57% to ₱2.9 billion due to reduced demand owing to the community quarantine measures imposed by the government to stop the spread of COVID-19 as well as forced outages.

“The current COVID-19 crisis continues to disrupt and impact our organization in different ways. Throughout this, we have given significant attention to our ability to adapt to changes and to prepare for uncertainties,” said Sabin M. Aboitiz, Aboitiz Group president and CEO.

Union Bank of the Philippines contributed P2.3 billion to AEV’s bottomline, down three percent year on year due to higher provisions for bad loans.

Property unit Aboitiz Land suffered a P39 million loss during the period, a turnaround from the P60 million net income reported a year earlier. This was attributed to lower revenues from the residential business amid the COVID-19 outbreak.

Infrastructure concern Republic Cement & Building Materials Inc. likewise reported a net loss of P10 million compared to the P249 profit booked in the first half due to the contraction in the demand for cement as construction activities significantly slowed down.

The group’s non-listed food subsidiaries under Pilmico, on the other hand grew its net income by 44% to P795 million. on robust contributions from the feeds and flour businesses which saw earnings surge by 296% and 50%, respectively.

Pilmico International saw its its earnings jump 205% due to increased volumes from Gold Coin’s China, Vietnam, Malaysia and Sri Lanka operations.

The farms business, however, incurred a P501 million loss due to decreased selling prices and sales volume due to the African Swine Fever in Luzon.

Aboitiz, however, is looking forward to a better economy in the second half as the country slowly opens up and adapts to the new normal.

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