ABOITIZ Equity Ventures, Inc. (AEV) saw a 21% decrease in its net income for the third quarter, primarily due to reduced nonrecurring gains, the listed conglomerate announced on Tuesday.
In a stock exchange disclosure, AEV said that its net income for the third quarter dropped to P7.6 billion from the previous year’s P9.6 billion.
“The company recognized nonrecurring gains of P1.4 billion during the period, primarily due to foreign exchange gains arising from the revaluation of US dollar cash and liquid financial instruments, compared to the P2.6 billion in nonrecurring gains for the corresponding period in 2022,” AEV said.
In the first nine months, AEV said its net income dropped 16% to P18 billion from P21.4 billion net income a year ago.
“The company recognized nonrecurring gains of P738 million, which was lower than the P5.3 billion in nonrecurring gains recorded during the same period in 2022,” AEV said.
Meanwhile, Aboitiz Power Corp. (AboitizPower), AEV’s power segment, reported a consolidated net income of P8.9 billion for the third quarter, marking a 7% decrease from the P9.6 billion net income achieved in the same period last year.
Its nonrecurring gains were lower at P134 million for the July-to-September period compared to the P325 million last year.
“Without these one-off gains, core net income for the third quarter of 2023, was P8.8 billion, 5% lower year on year,” AboitizPower said in a separate disclosure.
The company attributed the decrease in core net income to its distribution group’s “timing of refunds” following rate adjustments mandated by the Energy Regulatory Commission (ERC) in a resolution issued last year.
The ERC issued Resolution No. 14, Series of 2022, revising the rules for automatic cost adjustments and true-up mechanisms for distribution utilities, aiming to “promote transparency in the detailed calculation of different components of the power bill.” — Revin Mikhael D. Ochave and Sheldeen Joy Talavera