MANILA, Philippines – Aboitiz Equity Ventures Inc. reported a decline in its consolidated net income in the first quarter of 2014.
Aboitiz said its consolidated net income dropped 29 percent year-on-year to P4.9 billion in the first quarter of this year, translating to earnings per share of P0.88 for the period.
The firm said for the first quarter, it registered a non-recurring income of P470.6 million on the back of a P634 million gain from the sale of some assets as part of its business rationalization strategy.
The gain, however, was partially offset by the foreign exchange loss on the revaluation of consolidated dollar-denominated loans and placements amounting to P163.4 million.
Adjusting for the one-offs, Aboitiz’s core net income in the first quarter slid 20 percent to P4.4 billion.
Its power unit, Aboitiz Power Corp., contributed 73 percent to total earnings while the income contribution of the banking, food and land development units were at 16.6 percent, 7.7 percent, and 2.8 percent, respectively.
AboitizPower said it posted P4.2 billion consolidated net income in the first three months of the 2014, a 9 percent drop year-on-year.
Its core net income for the first quarter of 2014 also went down 3 percent to P4.4 billion due to the revaluation of consolidated dollar loans and placements, which led to an unrealized non-recurring loss of P211.1 million.
AboitizPower president and chief executive Erramon Aboitiz said despite the drop in earnings, the firm remains confident in its future growth plans.
“We remain committed to pursue our business plan, which very much supports the country's growth trajectory,” Aboitiz said in a statement.
“Now more than ever, we need to review our commitment to supply power at reasonable and competitive prices. This is our role, which we are committed to fulfill today and in the future,” he added.
In the first quarter, AboitizPower added 14 megawatts to the Mindanao grid with the start of commercial operations towards the end of February 2014 of its Tudaya 1 and 2 run-of-river hydro plants.
Two other projects in Sabangan and Davao are expected to be completed in 2015.
“AboitizPower has allotted close to P80 billion in capital expenditures this year, which will increase our group’s capacity by 2,000 MW by 2017. Aside from Therma South's 300 MW baseload plant coming on stream in the first quarter of 2015, we are looking at our hydro projects in Davao del Sur and Bukidnon to help boost power supply in Mindanao. We expect to introduce 380 MW of power in Mindanao in the next few years,” Aboitiz said.
“Recently, price volatility at the WESM (Wholesale Electricity Spot Market) has also stirred much controversy and debate. The ultimate solution is very clear, and that is the need to build new capacity and strengthen the competitive environment by passing on the power of choice to the end user through Open Access,” he added.