AEV H1 profit rises 16% to P11.8 B

Manila, Philippines -  Aboitiz Equity Ventures Inc. (AEV) said yesterday its first half profit grew 16 percent to P11.8 billion, mainly driven by the strong showing of its power and financial services units.

In a financial report submitted to the Philippine Stock Exchange, AEV said income from its power business continued to account for the lion’s share at 79 percent, followed by banking and food operations with income contributions of 17 percent and four percent, respectively.

AEV also booked a non-recurring gain of P725 million as a result of the revaluation of its consolidated dollar-denominated liabilities and placements.

Aboitiz Power Corp. chipped in P9.4 billion to AEV’s total earnings, up 16 percent due to higher average selling prices and increased net generation. Average price for its power went up seven percent, largely due to the 42-percent surge in average selling prices at the Wholesale Electricity Spot Market in Luzon.

The Luzon grid recorded a five-percent expansion in its recorded peak demand, with the hotter climate one of the factors pushing up demand level to almost 7,800 megawatts (MW).

Aboitiz Power’s attributable net generation improved 10 percent to 5,096 gigawatts (gwh) as electricity sold through bilateral contracts rose 14 percent.

The banking units, on the other hand, contributed close to P2 billion to group-wide earnings, an increase of 37 percent.

Union Bank of the Philippines ended the semester with earnings contribution of P1.8 billion, up 44 percent on the back of higher net interest income and hefty trading gains.

AEV’s non-listed thrift bank, City Savings Bank Inc. pitched in P197 million, down six percent from the previous level. Gross interest income grew 23 percent to more than P1 billion due to the robust growth in the bank’s interest income on loans, which expanded 38 percent to P674 million.

Meanwhile, income contributions from Pilmico Foods Corp. declined 20 percent to P522 million due to soft prices and rising input costs.

As of end-June 2012, AEV’s consolidated assets stood at P206 billion, up three percent. Cash and cash equivalents inched up three percent to over P30 billion.