AEV net income jumps, cites digital move and agility

ABOITIZ Equity Ventures, Inc. (AEV) on Monday reported a 3% rise in core net income to P7.3 billion in the fourth quarter of 2021, bringing its full-year core profit to P26.8 billion, up 68%.

“Our investments in digital transformation and innovation, matched by a strong culture of agility and resilience have paid off handsomely as we powered through the pandemic with strong performance indicators,” AEV President and Chief Executive Officer Sabin M. Aboitiz said in a disclosure to the stock exchange.

Including one-off gains, the company’s fourth-quarter consolidated net income increased by 9% to P7.8 billion as it recognized nonrecurring gains of P444 million due to foreign exchange gains from the revaluation of dollar-denominated assets.

For full-year 2021, consolidated income rose 77% to P27.3 billion, with the recognition of P527 million in nonrecurring gains after the asset revaluation, compared with P477 million a year earlier.

The company’s recorded EBITDA (earnings before interest, tax, depreciation and amortization) totaled to P17.6 billion for the year, or 7% lower.

Mr. Aboitiz said at the end of last year, the group’s performance trajectory substantially improved, “posting steadily rising figures.”

AEV’s power segment, Aboitiz Power Corp., accounted for 57% of the holding firm’s strategic business units’ total income last year. The unit contributed a P16-billion income share to the parent company, 66% more than its share in 2020.

Meanwhile, AboitizPower recorded a net income of P20.8 billion last year, 66% higher than the P12.6 billion in 2020 on the back of its commissioning revenue from GNPower Dinginin Ltd. Co. (GNPD) Unit 1, higher water inflow for its hydro plants, higher availability of the Therma Luzon, Inc., Therma South, Inc. and Therma Visayas, Inc. facilities, and higher dispatch at the wholesale electricity spot market in compliance with the must-offer rule.

The company said it recognized P228 million in nonrecurring losses for the full year. Without these one-off items, its core net income for 2021 would be up by 68% to P21.1 billion from the P12.5 billion recorded in 2020.

“AboitizPower was also able to claim liquidated damages for the delay in the construction of GNPD Units 1 and 2, and also received the final payment for business interruption claims resulting from GNPower Mariveles Energy Center Ltd. Co. and AP Renewables Inc. outages in previous years,” it said in a separate disclosure to the exchange.

AboitizPower’s generation and retail supply business recorded P43.4 billion in EBITDA last year, 15% higher than the P37.7 billion logged in 2020.

Capacity sold last year also climbed 10% to 3,753 megawatts (MW) from 2020’s 3,417 MW, while energy sales advanced 14% to 26,031 gigawatt-hours (GWh) from 22,754 GWh previously.

Higher energy consumption resulting from recoveries in demand drove energy sales up by 4% to 5,584 GWh last year from 5,368 GWh in 2020.

“Energy sales from the residential, commercial, and industrial customer segments increased due to less stringent community quarantines during 2021 and the resumption of operations of commercial and industrial customers,” the company said.

For the fourth quarter alone, AboitizPower reported a consolidated net income of P5.2 billion, 8% lower than the P5.6 billion recorded in the same period 2020.

“The new capacity from GNPD Unit 1 not only contributed to AboitizPower’s better financial performance but also delivered the much-needed energy supply as economic activities gradually increased in 2021. We are optimistic that with the target synchronization of Unit 2 in the second quarter of 2022, GNPD will help address the country’s thin reserves and meet critical market needs,” AboitizPower President and Chief Executive Officer Emmanuel V. Rubio said.

Meanwhile, AEV banking unit UnionBank of the Philippines contributed a total of P6.4 billion to the parent company or 9% higher than its share in 2020.

The bank and its subsidiaries posted a net income of P12.6 billion for 2021, advancing by 9% from 2020.

AEV’s non-listed food subsidiaries: Pilmico Foods Corp.; Pilmico Animal Nutrition Corp.; and Pilmico International Pte. Ltd., including Gold Coin Management Holdings Pte. Ltd. had a P2-billion share to the parent company’s income. This is 10% lower than its P2.2-billion share in 2020.

Its agribusiness segment’s net income last year declined 44% to P1.3 billion from the P2.3 billion in 2020 due to the increase in raw material costs. Its food and nutrition segment’s income soared 365% to P934 million as pork prices increased.

AEV real estate business Aboitiz Land, Inc. and its subsidiaries logged a consolidated net income of P2.6 billion last year, 658% higher than the P338 million recorded in 2020.

“AboitizLand contributed P5.3 billion in revenues for 2021, 47% higher than revenue contributions in 2020. This increase was primarily due to increased construction activities across most of its projects and increased sales performance, with spot payments in its high value properties,” the company said.

For the Infrastructure group, Republic Cement & Building Materials, Inc.’s income share to the parent company in 2021 reached P1.6 billion, 164% higher than the P590 million recorded in 2020, mainly due to stronger market demand from the residential and infrastructure segments last year.

On Monday, AEV shares at the local bourse went up by 30 centavos or 0.49% to close at P61.80 apiece. — Marielle C. Lucenio