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Wednesday, August 02, 2006
AEV’s income drops to P1.5B in Jan.-June
Aboitiz Equity Ventures Inc. (AEV) ended the first six months of this year with P1.56 billion in net income to common shareholders, a six percent decline from the re-stated net income in the first semester of 2005.
This is equivalent to 32 centavos in earnings per share. Earnings before interest, taxes, depreciation and amortization went down by eight percent to P3.13 billion.
In the second quarter, which ended June 2006, AEV posted a net income of P906 million, a 13 percent decrease from the same quarter last year.
Power group
In the first semester of the year, AEV’s power group, as a whole, posted better earnings, while its other business groups (banking, food and transport) showed lower profits versus the same period last year.
The power group, which is composed of distribution and generation companies, contributed P965 million in the first semester, up 10.7 percent over the same period last year.
The power distribution group, which includes the Visayan Electric Co. (Veco), contributed P628 million, up 24 percent over the same period last year.
Despite low volume growth, the power sector registered significant earnings growth due mainly to better operating efficiencies.
Banking
However, power generation companies contributed P337 million, a decline of eight percent. The decline is caused mainly by lower results from Luzon Hydro Corp. All other AEV generation companies posted better earnings over last year.
The banking sector also showed lower earnings, contributing P495 million to AEV, a 20-percent decline from its first half of 2005 contribution.
Union Bank of the Philippines did not do as well due to lower interest margins and lower earnings from its capital markets business.
In June 2006, Union Bank acquired 98 percent of International Exchange Bank (I-Bank), and the two banks will be merged in the third quarter of this year, with the former as the surviving entity.
Meanwhile, the transport group contributed a net loss of P1.1 million in the first six months, down from a net income of P214 million in the same period last year.
Better operating efficiencies were achieved in most areas of operations and operating costs were brought down in all areas, but the firm suffered due to the rising cost of fuel. The higher-than-projected price of fuel this year has more than offset the positive results achieved by the transport’s operations.
The food group contributed P199 million, almost six percent lower than its performance in the first semester last year. This is attributed to higher raw material costs in its flour and feeds businesses, as well as a softer market for its flour and swine. (PR)
For Bisaya stories from Cebu. Click here. (August 2, 2006 issue)
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