Aboitiz Equity Ventures' earnings surge in H1 2021

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Metro Manila (CNN Philippines, July 29) ​—​​​​​​ Aboitiz Equity Ventures (AEV) saw earnings skyrocket in the first half of 2021, according to its recent disclosure with the local bourse.

The conglomerate reported a consolidated net income of ₱13.5 billion - way up from the ₱3.9 billion logged in the same period last year.

Power unit and fellow listed firm AboitizPower reported earnings of ₱10.1 billion, rising from ₱3.7 billion last year.

"This was primarily due to commissioning revenue from GNPower Dinginin Unit 1, higher water inflow, higher demand, and higher wholesale electricity spot market (WESM) dispatch in compliance with the must offer rule," read the disclosure.

AboitizPower was also able to claim liquidated damages for the delay of GNPower Dinginin Ltd. Co.'s construction, AEV said, adding it was able to receive the final payment for business interruption claims from GNPower Mariveles Energy Center Ltd. Co.'s 2019 outages.

Union Bank of the Philippines and its subsidiaries also registered a ₱8.3 billion net income for the period compared to ₱2.3 billion from January to June 2020.

The bank's net revenues, net interest income, and non-interest income all grew during the period, the conglomerate noted.

"Loan loss provisions were recorded at ₱3.1 bn, 56% lower YoY as non-performing loans (NPL) started to stabilize. The Bank's NPL ratio improved to 4.7% as of end-June 2021, from 5.1% as of year-end 2020," AEV added.

Meanwhile, AEV's food subsidiaries saw earnings grow to ₱1.1 billion for the first half of the year from last year's ₱795 million. The subsidiaries are composed of Pilmico Foods Corporation, Pilmico Animal Nutrition Corporation, and Pilmico International Pte. Ltd., which includes Gold Coin Management Holdings Pte. Ltd.

AEV's real estate arm AboitizLand and subsidiaries logged a ₱385 million income for the period, swinging from ₱39 million in losses last year.

AboitizLand logged ₱1.8 billion in revenues for the first six months of 2021, higher than 2020's ₱1.1 billion figure due to "increased" construction activity for its residential business. The rise in sales, especially those making large spot down payments, also contributed to the increase.

Infrastructure segment Republic Cement & Building Materials Inc. earned ₱1.3 billion during the period - also reversing losses of ₱10 million during the first half of 2020.

"This was primarily due to stronger market demand driven by the residential and infrastructure segments, as well as reduced costs and increased overall efficiency," read the disclosure.

AEV shares finished at ₱39.50 apiece on Thursday - down 1.25% from Wednesday's close.