Wednesday, May 23, 2007 Power group fuels jump in profit By Malou M. Mozo Sun.Star Staff Reporter
THE Aboitiz Equity Ventures (AEV), the publicly listed company of the Aboitiz Group, reported a profit of P3.75 billion in 2006, a 19 percent jump over figures in 2005.
Its power business continued to contribute to its growth, accounting for 56 percent of the company’s income.
Jon Ramon Aboitiz, AEV president and chief executive officer, said in the last six years, AEV’s revenues have grown at a compounded annual growth rate of 15.3 percent, from P11.3 billion in 2000 to P26.7 billion last year.
Return on equity was at 19.2 percent, as all companies reportedly generated profits.
AEV achieved an audited earning before interest, taxes, depreciation and amortization of P7 billion in 2006. The figure is eight percent higher than the previous year.
Earnings per share stood at P0.76 centavos, compared to the P0.65 centavos in the previous year, said AEV executive vice president and chief operating officer Erramon Aboitiz.
The conglomerate has four business groups, namely power, banking, transport and food.
In terms of income contribution per business group, AEV data showed that the power business continues to provide the lion’s share, accounting for 56 percent, amid higher margins and more operating efficiencies.
It contributed P2.3 billion, a 12 percent jump from figures in 2005.
It is followed by the banking group, which accounted for 28 percent, the food business with a 13 percent share and the transport group representing three percent.
Jon Ramon said with the power business being the main driver of AEV’s profits, the company is looking at opportunities to expand its power distribution business.
He earlier revealed plans to enlist the Aboitiz Power Corp. (APC), the holding company of AEV’s electricity interests, through an Initial Public Offering.
AEV’s power distribution facilities contributed P1.18 billion, a 21 percent jump from 2005’s P1.05 billion.
The utilities sold a total of 3,500 gigawatt hours (Gwh) of electricity last year, indicating a 2.6 percent rise from the previous year.
Customer-base
Visayan Electric Co. (Veco), the second largest electric utility nationwide, contributed P237 million in 2006, 50 percent higher than 2005.
Veco sold 1,571 Gwh and its customer-base increased to 283,000.
Significant developments in the power sector last year saw the joint venture between APC and SN Power of Norway for the 360-megawatt (MW) Magat hydroelectric plant in Isabela by the Power Sector Assets and Liabilities Management Corp.
“It is the largest hydroelectric facility to be privatized by government,” Jon Ramon told stockholders during the AEV 2007 Annual Stockholders Meeting Monday at the Cebu City Marriott Hotel.
He added that the plant will mean more than double the generation capacity of APC’s hydro assets.
In addition, AEV’s concluded agreements with the National Transmission Corp. for the acquisition of all sub-transmission assets within their franchise area.
“This will ensure we are not bypassable when open access is implemented,” Jon Ramon said.
AEV’s banking group, which includes Union Bank of the Philippines (Unionbank) and City Savings Bank, contributed P1.12 billion last year, a seven percent from figures in 2005.
With Unionbank’s acquisition of the International Exchange Bank, total resources grew by 73 percent to P185 billion last year. City Savings contributed P48 million in 2006, 159 percent higher than the previous year.
In terms of transport, the Aboitiz Transport System reported a 313 percent growth rate, contributing P142 million last year, despite a decline in freight and passenger volume.
The food group’s contribution was flat at P510 million, which increased its income contribution by 34 percent. The group includes Pilmico Foods Corp. and Fil-Am Foods.
