Aboitiz Equity Ventures (AEV), the holding company of the Aboitiz clan, finished 2022 with lower earnings following a reduction in its stake in Aboitiz Power Corp. from 77 percent to 52 percent.
In a regulatory filing, AEV said earnings declined by nine percent to P24.8 billion last year .
AEV’s lower stake in AboitizPower led to a decline of 11 percent in the power company’s income contribution to AEV, which went from P16 billion in 2021 to P14.3 billion last year.
If AEV had retained its previous ownership in AboitizPower, its normalized core net income for 2022 would have been five percent higher than last year.
Power contributed the bulk of AEV’s total income, accounting for 62 percent of its strategic business units’ contributions, while financial services made up 27 percent. Meanwhile, UnionBank’s income contribution to AEV remained flat at P6.3 billion.
Unfortunately, AEV’s profitability for the fourth quarter of 2022 also took a hit due to non-recurring losses attributed to foreign exchange. The holding firm’s net income for the October to December period plummeted by 55 percent year-on-year to P3.5 billion
Sabin Aboitiz, the CEO and president of the Aboitiz Group, said the company’s focus remains on strategic innovation and talent development, as they continue to shape the organization and culture of the techglomerate.