DAVAO CITY — Aboitiz Equity Ventures, Inc. (AEV) ended 2005 with a net income of P3.16 billion, 29% higher than its restated 2004 net income. This translates to earnings per share (EPS) of P0.65.
As a result of the adjustments made to comply with new accounting standards, the net income figure for 2004 was restated upward by P121 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 9% to P6.36 billion. Consolidated revenues in 2005 increased by 21% to P27 billion.
AEVs power businesses remained the largest income contributors with P2.12 billion, up 32% from its 2004 contribution. The generation companies contributed P1.05 billion, up 36% while distribution utilities turned in P1.07 billion, a 28% jump from 2004.
The companys banking investments contributed P930 million in 2005, with UnionBank of the Philippines turning in P911 million, an 11% increase from the previous years P821 million.
AEVs food group increased its income contribution by 13%, turning in P382 million. Although volumes in its flour business were flat, its feeds and swine businesses performed exceptionally well in 2005 as production efficiencies showed significant improvements.
The transport group contributed P34 million to AEVs income in 2005, a significant drop from the prior year. This was primarily due to large increases in its fuel costs, which could not be fully passed on through rate increases.
The reorganization of the groups transport businesses was completed late last year, which saw the integration of the freight forwarding, courier, logistics, crewing and ship management businesses into Aboitiz Transport Systems Corp. (ATSC). This move should enable ATSC to provide its customers with total transport and logistics solutions, and diversify its revenue mix.
AEVs cash balance as of December 31, 2005 increased slightly to P4.6 billion. Its net debt to equity ratio stood at 0.43, while its current ratio was at P1.28.
The AEV group has adopted and is in full compliance with the new/revised Philippine Accounting Standards (PAS) mandatory for financial years beginning on or after January 1, 2005.
In February this year, AEVs board of directors declared a cash dividend of P736 million, or P0.15 per share to all stockholders on record as of February 26, 2006, which was paid on March 10. 2006. (PR/DLPC)
