| By Zinnia B. Dela Peña (The Philippine Star) Updated March 04, 2011 12:00 AM |
MANILA, Philippines – Aboitiz Equity Ventures Inc. (AEV), the publicly-listed holding firm of the Cebu-based Aboitiz clan, reported a net income of P21.9 billion last year, up 163 percent from 2009 on the stellar showing of its power unit and higher contributions from its banking and food concerns.
In a financial report submitted to securities regulators, AEV said the 2010 profit translates to earnings per share of P3.96.
The power group still accounted for the lion’s share of AEV’s business at 85 percent or P19.1 billion, which is more than four times the P4.3 billion recorded a year earlier.
The banking and food groups ranked second and third with income shares of 12 percent and seven percent, respectively, offsetting the negative contribution from the integrated transport and logistics group.
“Our businesses at AEV turned in strong operating results. We continue to be guided by our investing discipline and strict adherence to our agreed cost of capital,” said Erramon Aboitiz, president and chief executive officer of AEV.
In the fourth quarter of 2010, AEV reported a 107 percent jump in net earnings from P2.4 billion to P5 billion.
Last year, the company incurred a non-recurring gain of P30 million as against the P961 million recurring income in 2009. This consisted of P786 million in foreign exchange net gains; P4 million share in National Power Corp. charges that were reversed; P304 million share in refinancing cost of one of the power unit’s associates; and P456 million loss booked for the sale of Aboitiz Transport System.
Accounting for these non-recurring items, AEV’s core earnings surged 197 percent to P21.8 billion.
The power generation business contributed P18.6 billion last year, representing an increase of 424 percent year-on-year on improved pricing and volume sales. Average selling prices for bilateral contracts and transactions in the spot market recorded significant improvements of 13 percent and 181 percent, respectively.
Total attributable power sales grew 111 percent from 4,619 gigawatt-hours (gwh) to 9,762 gwh.
Full year contributions from assets acquired in 2009, coupled with fresh contributions from completed greenfield plants and assets acquired in 2010, augmented AboitizPower’s attributable net generation for the year.
As of end-2010, AboitizPower’s attributable capacity was at 2,051 megawatts (MW), posting an 18 percent increase.
“We are executing our strategy to sign more bilateral contracts that will result in more predictable and less volatile earnings,” said Aboitiz in reference to offtake from AboitizPower generation assets.
The food business, through Pilmico Foods Corp., contributed P1.5 billion in net income, 25 percent higher than the previous year.
Despite lower average selling prices, the flour division’s income contribution went up 79 percent as volume expansion drove bottom line performance.
In a financial report submitted to securities regulators, AEV said the 2010 profit translates to earnings per share of P3.96.
The power group still accounted for the lion’s share of AEV’s business at 85 percent or P19.1 billion, which is more than four times the P4.3 billion recorded a year earlier.
The banking and food groups ranked second and third with income shares of 12 percent and seven percent, respectively, offsetting the negative contribution from the integrated transport and logistics group.
“Our businesses at AEV turned in strong operating results. We continue to be guided by our investing discipline and strict adherence to our agreed cost of capital,” said Erramon Aboitiz, president and chief executive officer of AEV.
In the fourth quarter of 2010, AEV reported a 107 percent jump in net earnings from P2.4 billion to P5 billion.
Last year, the company incurred a non-recurring gain of P30 million as against the P961 million recurring income in 2009. This consisted of P786 million in foreign exchange net gains; P4 million share in National Power Corp. charges that were reversed; P304 million share in refinancing cost of one of the power unit’s associates; and P456 million loss booked for the sale of Aboitiz Transport System.
Accounting for these non-recurring items, AEV’s core earnings surged 197 percent to P21.8 billion.
The power generation business contributed P18.6 billion last year, representing an increase of 424 percent year-on-year on improved pricing and volume sales. Average selling prices for bilateral contracts and transactions in the spot market recorded significant improvements of 13 percent and 181 percent, respectively.
Total attributable power sales grew 111 percent from 4,619 gigawatt-hours (gwh) to 9,762 gwh.
Full year contributions from assets acquired in 2009, coupled with fresh contributions from completed greenfield plants and assets acquired in 2010, augmented AboitizPower’s attributable net generation for the year.
As of end-2010, AboitizPower’s attributable capacity was at 2,051 megawatts (MW), posting an 18 percent increase.
“We are executing our strategy to sign more bilateral contracts that will result in more predictable and less volatile earnings,” said Aboitiz in reference to offtake from AboitizPower generation assets.
The food business, through Pilmico Foods Corp., contributed P1.5 billion in net income, 25 percent higher than the previous year.
Despite lower average selling prices, the flour division’s income contribution went up 79 percent as volume expansion drove bottom line performance.
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