ABOITIZ EQUITY Ventures, Inc. reported a 27% jump in its income for the first quarter over yearago levels as its core power business pulled off higher electricity sales while its banking arm enjoyed a profit surge on trading gains.
Aboitiz Equity’s consolidated net income rose to P5.9 billion for January to March from the P4.6 billion recorded in the same period last year, it said in a statement on Friday.
Its core net income meanwhile rose by a similar 28% to P5.5 billion from P4.3 billion. Aboitiz Equitysaw one-off gains worth P386 million “due to the revaluation of consolidated dollar-denominated loans and placements.”
Subsidiary Aboitiz Power Corp. accounted for 73% of the conglomerate’s earnings. Aboitiz Power closed the first quarter with a 10% growth in its consolidated net income to P5.6 billion from P5.1 billion. Its core net income went up 9% to P5.1 billion from P4.7 billion.
This increase was mainly due to the higher demand for power and the 5% increase in its average selling price.
“This was mainly attributable to the higher prices at the Wholesale Electricity Spot Market. Curtailed supply due to higher average plant outages and surge in demand during the quarter led to the hike in the average price of electricity in the Luzon grid’s spot market,” the firm said in its statement.
The company’s attributable net generation for the first quarter grew 13% to 2,452 gigawatt-hours (GWh) from 2,168 GWh. Its attributable sales increase to 1,483 megawatts (MW) from 1,302 MW.
Its capacity also grew 15% to 2,350 MW “due to the assumption of full ownership of and control over the 70-MW Bakun run-of-river hydro plant and the acquisition of the 242-MW Navotas power barges, the full completion of the rehabilitation of the Ambuklao hydropower facility and completion of the 4-MW Irisan hydropower project and the partial completion of the Binga hydropower rehabilitation.”
Aboitiz Equity’s banking units meanwhile contributed 23% of total earnings. Union Bank of the Philippines saw its income contribution to its parent firm grow by 285% to P1.2 billion. Its net interest income grew 1% to P1.8 billion from P1.7 billion. Non-interest income increased to P3.9 billion from P1.2 billion last year “driven primarily by hefty trading gains.
Higher premium revenues also contributed to the significant increase in non-interest income due to the higher sales of its subsidiary’s pre-need plans.”
Aboitiz Equity’s non-listed bank City Savings Bank, Inc. contributed P99 million, down 4% as its income was weighed down by an increase in operating expenses.
The food unit of Aboitiz Equity, Pilmico Foods Corp., saw its income drop by 22% to P219 million from P282 million due to “poor market condition, i.e. lower average selling price and higher input costs.