ABOITIZ EQUITY EARNS P4B
Aboitiz Equity Ventures, Inc. (AEV) ended the first half of 2020 with ₱4 billion in net income, 55% lower than the ₱9 billion recorded during the same period last year, reflecting the impact of the lower income contribution of its largest business unit, Aboitiz Power Corporation.
The company recognized non-recurring losses of ₱20 million versus the ₱78 million in nonrecurring gains recorded in the previous year, representing foreign exchange losses from the revaluation of dollar-denominated assets.
Without these one-off losses, AEV’s core net income for the first half of 2020 was ₱4 billion, 54% lower year-on-year (YoY) (from ₱8.9 billion). AEV recorded consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) of ₱23 billion during the first six months of 2020, a 13% decrease from the ₱26.5 billion recorded in the same period last year.
Power accounted for 49% of the total income contributions from AEV’s Strategic Business Units (SBUs), followed by banking and financial services (39%), food (14%), infrastructure (1%), and land (-1%).
“The current COVID-19 crisis continues to disrupt and impact our organization in different ways. Throughout this, we have given significant attention to our ability to adapt to changes and to prepare for uncertainties,” said Sabin M. Aboitiz, Aboitiz Group President and Chief Executive Officer.
“For the rest of the year, our goal is unchanged: to remain resilient and for our business units to be in the best possible position when we emerge from this crisis, in order to support the country’s economic recovery. As One Aboitiz, we will continue to be one with the nation in its fight against COVID-19,” Aboitiz added.
The Aboitiz chief looks forward to a better economy in the second half of the year as the country slowly opens up and adapts to the new normal.