UnionBank soars, AboitizPower struggles in first 9 months of 2019
MANILA, Philippines – Aboitiz Equity Ventures (AEV) continues to struggle with beating its 2018 numbers, as its earnings from January to September this year declined by 9%.
Its net income stood at P15.7 billion from January to September, lower than the P17.3 billion it recorded during the same period last year.
Earnings before taxes stood at P44.8 billion during the period, 2% lower than in 2018.
AEV president and chief executive officer Erramon Aboitiz said its power business faced challenges during the year.
"Despite challenges in our power business, better operating performance in our non-power businesses provided resilience to our investment portfolio. As we fund our growth projects, we look to further broaden and strengthen our diversification in the Philippines and overseas," Aboitiz said.
Power accounted for 60% of the total income contributions, followed by banking (25%), food (6%), land (5%), and infrastructure (4%).
AboitizPower's core net income for the first 3 quarters of 2019 was P13.7 billion, a sharp 26% decrease from 2018.
"This was primarily due to the higher volume and cost of purchased power, lower spot market revenues, and lower plant availability," AEV said.
AboitizPower's net income contribution to AEV for the first 3 quarters of 2019 decreased by 19% year-on-year to P10.4 billion.
UnionBank and its subsidiaries recorded a whopping net income of P8.5 billion in the first 9 months of 2019, 40% higher compared to the P6.1 billion recorded in the same period last year.
Its income contribution to AEV for the first 9 months of 2019 greatly increased by 41% to P4.2 billion, from P3 billion in 2018.
UnionBank said its growth was primarily driven by robust revenues coming from the sustained double-digit growth in earning assets as well as strong trading gains for the first 3 quarters.
AEV's food business, which are composed of non-listed firms Pilmico Foods, Pilmico Animal Nutrition, and AEV International, earned P1 billion for the first 9 months of 2019, a 31% decrease from the P1.5 billion recorded in the corresponding period last year.
The company attributed this to the decline of the feeds and farms business segments, which fell due to higher manufacturing costs and operating expenses, and decreased margins following increased feeds costs and lower live hog selling prices.
Pilmico International, a subsidiary of AEV International, delivered a net income of P683 million during the period.
Real estate, infrastructure
Republic Cement and Building Materials' income contribution to AEV for the first 3 quarters of 2019 amounted to P631 million, a massive 186% jump from the P221 million it reported in the same period last year.
This was primarily due to improved control of production costs, increased private sector demand, and the completion of several projects.
AboitizLand and its subsidiaries reported a consolidated net income of P829 million, 106% higher than the P404 million recorded in the same period in 2018. – Rappler.com