Aboitiz Equity Ventures Inc. (AEV) reported a 54 percent drop in third-quarter net income to P4.1 billion from P8.9 billion a year earlier, limiting nine-month earnings growth despite stronger contributions from power and banking.
The conglomerate earned P17.8 billion in January to September, up 2 percent from the same period last year.
AboitizPower’s third-quarter profit fell 26 percent to P7.8 billion from P10.6 billion as lower coal plant availability weighed on results.
For the nine-month period, however, the power company’s earnings rose 13 percent to P26.2 billion, supported by higher electricity market prices, increased contracted sales and additional capacity from hydroelectric and solar facilities.
AboitizPower contributed P14.1 billion to AEV’s earnings.
Banking provided further support, with UnionBank’s net income climbing 53 percent to P9.9 billion on stronger lending income, banking fees and wealth management services. Its contribution to AEV reached P5 billion.
Other businesses faced pressure.
Real estate earnings plunged to P7 million from P1.7 billion, mainly due to the absence of substantial land sale gains recorded last year and the timing of economic estate lot sales.
Food and beverage contributions declined to P4.7 billion from P5.2 billion as import competition and weaker local demand challenged farms and meat operations.
Infrastructure losses attributable to AEV totaled P1.7 billion, including P1.2 billion from Republic Cement.
AEV’s share of Aboitiz InfraCapital’s losses narrowed to P520 million from P668 million, supported by airport traffic and telecommunications tower expansion.
The group ended September with P1 trillion in assets and P84.8 billion in cash. Total liabilities increased to P621.2 billion from P609.1 billion.
