Aboitiz Group reports profit decline
Power still biggest contributor; real estate arm sets P4.6 billion capital expenditure
Despite a higher profit in the fourth quarter of 2015, Aboitiz Equity Ventures, Inc. (AEV) reported a 4-percent decline in its consolidated net income last year to P17.7 billion from P18.4 billion in 2014.
This translated to P3.18 in earnings per share, the company said in a disclosure to the Philippine Stock Exchange (PSE) yesterday.
AEV, the listed holding company of the Aboitiz family from Cebu, ended the fourth quarter of 2015 with a consolidated net income of P5.8 billion, an increase of 40 percent year-on-year.
The company said it incurred a non-recurring loss of P602 million as of end-December last year, as against the 2014 gain of P436 million, because of the mark-to-market revaluation of the power business units’ consolidated dollar-denominated assets and liabilities.
Adjusting for these one-off’s, AEV’s core net income amounted to P18.3 billion, which was 2 percent higher than in 2014.
Power accounted for 73 percent, followed by the financial services, food, real estate and infrastructure strategic business units with income contributions of 14 percent, 9 percent, 3 percent and 1 percent, respectively.
AboitizPower Corp. (AboitizPower) contributed P13.5 billion last year, 6 percent higher than its 2014 contribution of P12.7 billion.
AboitizPower recorded a 5-percent increase in its income to P17.6 billion from P16.7 billion. This translated to earnings per share of P2.39.
Adjusting for its non-recurring mark-to-market loss of P762 million (versus last year’s loss of P136 million), AboitizPower’s core net income for 2015 amounted to P18.4 billion, up by 9 percent year-on-year.
Union Bank of the Philippines contributed P2.5 billion, 22 percent lower than its P3.2-billion share in 2014.
Strong growth in recurring net income partially offset the absence of trading gains, resulting in full year 2015 earnings falling to P5.3 billion as compared to the P6.8 billion posted the previous year.
This translated to return on average equity and return on average assets at 10.2 percent and 1.2 percent, respectively.
Aboitiz Land, Inc., real estate arm of the group, contributed P536 million, 15 percent lower than the P633 million in 2014.
Revenues reached P2.6 billion, with industrial business contributing 52 percent of P1.3 billion. The residential business unit recorded an 8-percent increase in sales and contributed P1.1 billion. The rest of the revenues amounting to P120 million came from the commercial business unit and other revenue streams.
This year, AboitizLand is allotting P4.6 billion for capital spending, almost three times than in 2014. About a third, or 29 percent, of the total capital expenditures will be spent for land acquisition while 65 percent will go to project development.
AEV’s newly acquired company, Republic Cement and Building Materials, Inc. (Republic), only started contributing last mid-September of the year and posted income contribution of P194.4 million for the period in review.
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