Aboitiz Equity Ventures income down 8% to P2-B in 2003

Aboitiz Equity Ventures Inc. (AEV) posted a P2.025-billion unaudited net income last year, down by eight percent from the previous year’s level of P2.205 billion.

AEV’s 2002 earnings included proceeds from subsidiary Luzon Hydro Corp.’s business interruption claim of P236 million.

The company’s 2003 earnings, on a recurring basis, therefore increased by three percent from 2002’s recurring income, giving the company a compounded annual growth rate of 22 percent.

AEV’s power subsidiaries and associates contributed P1.36 billion to the company’s 2003 earnings.

Banking subsidiaries and affiliates meanwhile, turned in a combined contribution of P749 million, or an increase of 46 percent from the 2002 contribution.

The transport group’s contribution to AEV’s 2003 income improved by 17 percent to P256 million.

Pilmico Foods Corp. (PFC), AEV’s food manufacturing subsidiary, pumped in P173 million, 28 percent lower than in the same period last year. Other AEV investments contributed P12 million.

As of end-December last year, AEV’s cash balance increased to P3.3 billion as against P2.3 billion at the end of 2002.

AEV is the publicly-listed holding and investment management company of the Aboitiz group.

Through its majority and minority-owned subsidiaries, AEV is engaged in various business activities in the Philippines, including electricity generation and distribution, banking and financial services, food production and transportation. Its core investments are in power and banking.

The company earlier invested in Subic EnerZone Corp., which has been awarded the right to distribute power in the Subic Bay Free Port under a rehabilitate-operate-transfer scheme. AEV currently holds 20-percent interest in SEZC.

SEZC took over the Subic Bay Metropolitan Authority (SBMA) distribution facilities last Oct. 25.

AEV also purchased shares and gained controlling stake in shipping firm William Gothong & Aboitiz Inc. (WG & A) last year.