Aboitiz income jumps 29% to P3.16B

Aboitiz Equity Ventures Inc. (AEVI), the investment holding company of the Aboitiz family, reported a 29-percent growth in its net income last year to P3.16 billion, mainly driven by the continued strong performance of its power and banking units.

In a statement, AEVI said the 2005 net income translates to earnings per share of 65 centavos while earnings before interest, taxes, depreciation and amortization (EBITDA) rose nine percent to P6.36 billion. Consolidated revenues grew 21 percent to P27 billion, it added.

AEVI’s power business remained the holding firm’s major driver of growth, pumping in P2.12 billion in profits or an increase of 32 percent from the previous year. The generation companies contributed P1.05 billion or 36 percent higher while distribution utilities accounted for P1.07 billion, up 28 percent from 2004.

The company’s banking investments turned in P930 million in earnings last year, with Union Bank of the Philippines contributing P911 million or an improvement of 11 percent from the year-ago figure of P821 million.

AEVI’s food group also increased its income contribution by 13 percent, turning in P382 million. Although volumes in its flour business were flat, its feeds and swine businesses performed exceptionally well as production efficiencies showed significant improvements.

Meanwhile, the holding group’s transport business under Aboitiz Transport System Corp. (ATSC) suffered a 79-percent drop in net income last year to P65.7 million from P310.5 million as increased costs offset revenue growth.

While revenues increased by 20 percent to P11.7 billion, large increases in fuel costs which could not be fully passed on through rate increases weighed down on profits.

Total costs and expenses reached P11.5 billion, up 25 percent from the previous year, primarily due to the increase in fuel and lubricants expenses. ATSC also recognized P1.9 billion in charter hire expenses from its subsidiaries having outstanding charter party agreements with vessel owners for the use of the vessels or for sublease to third parties.

Other factors that contributed to the rise in costs and expenses include an 11-percent increase in terminal expenses and eight percent rise in overhead expenses.

The transport companies under ATSC are: Aboitiz One Inc., Aboitiz Jebsen Bulk Transport Corp., Jebsens Maritime Inc., Aboitiz Jebsen Manpower Solutions and Jebsen Management BVI Ltd., an offshore company.

As of end-December last year, AEVI’s cash balance amounted to P4.6 billion. Its net debt to equity ratio stood at 0.43, while its current ratio was at 1.28.

Last month, AEVI’s board of directors declared a cash dividend of P736 million, or 15 centavos per share to all stockholders on record.