Aboitiz Equity Ventures, Inc.
AEV consolidates banking units under UnionBank

ABOITIZ EQUITY Ventures, Inc. (AEV) transferred its ownership in PETNET, Inc. to the subsidiaries of UnionBank of the Philippines that will consolidate the conglomerate’s interests in banking and financial services.

In a disclosure to the stock exchange on Monday, the holding firm said it signed a share purchase agreement for the sale of its 51% stake in PETNET to City Savings Bank, Inc. and Union Properties, Inc. (UPI) for P1.2 billion.

An affiliate of AEV, UnionBank owns 99.77% of CitySavings and 100% of UPI. The subsidiaries acquired 2.46 million shares in PETNET at P487.54 apiece, which is based on the agreed enterprise value for PETNET and its assets, net of the amount attributable to the other shareholders of PETNET.

“The sale and resulting consolidation of all of AEV’s existing interests in banking and financial services will unlock shareholder value from the synergies between the core businesses of CitySavings and PETNET,” the conglomerate said.

PETNET, known under the retail brand PERA HUB, has the largest network of Western Union outlets in the Philippines. With over 2,800 outlets nationwide, it offers a variety of cash-based services including remittance, currency exchange and bills payment.

CitySavings intends to take advantage of PERA HUB’s retail network and expand its existing loans marketing partnership with PETNET to boost its market reach.

The acquisition also gives the UnionBank group a platform to conduct agency banking, in which banks can employ third-party outlets to perform certain financial services in their behalf.

The consolidation also supports the BSP’s efforts to improve financial inclusion in the country by using non-traditional channels.

The completion of the sale, targeted by the second quarter of 2018, is subject to the approvals by the Philippine Competition Commission and the Bangko Sentral ng Pilipinas (BSP).

AEV posted a 7% decline in net income to P15.9 billion in the first nine months of 2017 compared to P17.1 billion in the previous, dragged by non-recurring losses of P1.2 billion from foreign exchange losses from the revaluation of dollar-denominated loans and pre-termination costs on refinancing.

Without the extraordinary items, AEV’s core net income remained flat at P17.1 billion.

Aside from financial services, AEV is also engaged in power, food, real estate and infrastructure.

source: http://bworldonline.com/aev-consolidates...unionbank/

Aboitiz and Lopez firms team up for Visayas construction projects

THE CONSTRUCTION companies of the Aboitiz and Lopez families are joining forces to undertake projects in central Philippines.

In a statement, Aboitiz Construction, Inc. (ACI) and First Balfour, Inc. said they signed a memorandum of understanding “to explore potential project collaborations in the Visayas.”

The two firms will combine their expertise and resources to pursue prospects and secure contracts in the region.

“This partnership guarantees resilience and competitiveness as both can leverage on respective strengths,” said Aboitiz Construction Chairman Jaime Jose Aboitiz was quoted in the statement as saying.

Combined, Aboitiz Construction and First Balfour bring almost a century of construction experience, with strong presence in the country.

Aboitiz Construction began operations in 1975 with its head office in the Visayas while First Balfour, a Lopez-led company, started in 1969 with its headquarters in Luzon.

Aboitiz Construction is capable of doing work from conceptualization to execution and commissioning, from earth moving to marine structures, from petrochemical to world-class resorts, from warehouses to office buildings and more.

Lopez-led First Balfour has a track record in building real estate, water and transport infrastructure as well as power and energy.

The construction sector is poised for sustained rapid growth given the strong private sector activity and the roll out of the government’s P8-trillion aggressive infrastructure program — dubbed “Build, Build, Build” — that aims to decongest the Philippine capital and boost countryside development. 

source: http://bworldonline.com/aboitiz-lopez-fi...-projects/

...ayus 'to ah  Smile nice news

Aboitiz Group’s new unit inks partnership deal with Japan-based Weathernews

WEATHER SOLUTIONS, Inc., a newly created unit of the Aboitiz Group, is partnering with Japan-based Weathernews, Inc. (WNI) for the delivery of hyperlocal weather information to Philippine businesses.

In a statement released over the weekend, Weather Solutions said it signed a memorandum of understanding with WNI, which will allow the companies to collaborate on various areas such as providing training for meteorologists, consumer services, and new tools.

Weather Solutions, described as the country’s first weather-centric social enterprise, provides available historical and real-time weather data, forecasting, and consultancy to companies across different industries.

WNI, the world’s largest private weather service company, has over 30 years of experience, technology and operating systems that “can help local businesses interpret how weather data can be used to mitigate operational risks and/or drive industry-specific solutions to boost performance.”

Weather Solutions President Jojo Z. Marasigan said WNI would help analyze the available weather data for companies.

“For instance, in retail, WNI’s data analysis can predict which specific products are supposedly sellable for a particular time of the year. We are excited to take this journey with WNI, possibly creating breakthrough platforms that will change the way businesses operate, especially around the communities that they support. In incorporating use of weather data for business, we are seeing growth in our prospective partners’ gains,” Mr. Marasigan was quoted as saying.

With its partnerships with WNI and Aboitiz Group’s WeatherPhilippines Foundation, Inc., Weather Solutions can “create a robust and reliable data-as-a-service (DaaS) solution for its customers.” The company offers customizable weather datasets that companies and individuals can use for decision making.

“This partnership with Weather Solutions is a very big step in moving forward. We understand that the company has already installed around 800 automated weather stations (AWS), and this is a very good thing. We appreciate what you have done and we feel very honored to be a partner,” WN Weatherstreet Philippine Branch General Manager Hirokazu Koro was quoted as saying.

source: http://bworldonline.com/aboitiz-groups-n...athernews/


Aboitiz submits bid for 4 regional airports
Offers to spend P148B in exchange for 35-year concession

The private sector is now turning to provincial airport opportunities around the country after a slew of offers focused on Manila’s main gateway—the Ninoy Aquino International Airport (Naia)—had emerged.

Aboitiz Equity Ventures Inc., which also joined the “super consortium” of seven conglomerates seeking to operate and upgrade Naia, made an unsolicited offer on Wednesday for four regional gateways: Iloilo International Airport, Bacolod-Silay Airport, Laguindingan Airport and New Bohol International Airport in Panglao.

AEV, through infrastructure subsidiary Aboitiz InfraCapital, wants to upgrade, expand and operate these airports, several of which are gateways to popular tourist destinations and are operating above capacity.

The group offered to spend P148 billion and sought a 35-year concession.

With AEV, the Duterte administration has since collected a total of five active unsolicited airport offers valued at more than P1.9 trillion. The proposals were mainly in response to the lack of public private partnership (PPP) projects offered by the government, coupled with its vague airport policy.

The regional airports were once part of the PPP program, although these were not bid out given the government transition in 2016.

The airports were later removed from the pipeline as the current administration considered overseas development assistance (ODA) loans as a funding source. The projects, which were previously studied, are being reviewed anew, the Department of Transportation said earlier.

AEV was among those that prequalified in the original regional airports PPP project.

For its current bid, AEV noted that its airport approach considered “the least environmental impact” and technologies to improve passenger experience. It did not name its technical partner.

AEV said that Iloilo, Bacolod-Silay and Laguindingan were also already operating above capacity and required “urgent rehabilitation.” It added that operations and passenger experience could be improved within a year while capacity expansion would take around three years.

“Through this unsolicited proposal, we intend to support the government’s ‘Build, Build, Build’ program as we develop sustainable airport facilities that reflect and support the tremendous economic and tourism potential of the Philippines’ regions and provinces,” Aboitiz InfraCapital CEO and president Sabin Aboitiz said in the statement.

He added that the offer did not include any subsidies— a requirement implemented early on by the DOTr.

Since this is an unsolicited proposal, it would need to undergo a Swiss challenge, assuming it is accepted and approved by the government. A Swiss challenge allows other groups to submit better offers. However, the rules grant the original proponent, in this case Aboitiz InfraCapital, the right to match and bag the deal.

Over the last three weeks, two unsolicited offers for Naia were made and one for Sangley, Cavite. The previous year, San Miguel Corp. submitted an offer for a new international airport in Bulacan province.

The Duterte administration, meanwhile, is currently expanding the Clark International Airport in Pampanga province, another potential international gateway.

source: http://business.inquirer.net/247282/aboi...l-airports


Aboitiz Group posts P21.6b in net income, down -4%

Aboitiz Equity Ventures Inc., the holding company of the Aboitiz family, said Friday it posted a net income of P21.6 billion in 2017, down 4 percent from P22.5 billion in 2016.

AEV said minus non-recurring losses, core income climbed 5 percent to P23.9 billion last year from P22.8 billion in 2016.

The company recognized non-recurring losses of P2.3 billion in 2017 on asset impairment and debt prepayment costs which were partially reduced by a one-off recognition of lower interest expense from an acquired loan.

AEV said consolidated earnings before interest, taxes, depreciation and amortization rose to P57 billion  in 2017 from P48.1 billion in 2016.

“While we faced challenges that tested the resilience of our portfolio, these results still showed the underlying strength of our core operating businesses, prompting our optimism on the long-term fundamentals of our businesses,” AEV president and chief executive Erramon Aboitiz said.

The biggest income contribution came from power business (69 percent), while banking and financial services, food, land and infrastructure strategic business units contributed 18 percent, 7 percent, 3 percent and 3 percent, respectively.

AEV’s power arm Aboitiz Power Corp. saw its net income increase 2 percent to P20.4 billion in 2017 from P20 billion a year earlier.

“Our bottomline was definitely affected with our decision to cease the operations of Aseagas. But looking at the actual performance of our operations, we have continued to grow in 2017, thanks to the improved reliability and availability of our plants,” said Aboitiz Power president and chief operating officer Antonio Moraza.

Aboitiz Power said without the one-off adjustments, the company’s core net income grew 13 percent last year to P23.3 billion from P20.6 billion in 2016.

Aboitiz Power sold 3,214 megawatts of capacity last year, up 41 percent from a year ago, with the additional capacities from GNPower-Mariveles, higher generation of hydro units and more capacities contracted.

Aboitiz Power’s attributable sales in the distribution group reached 5,288 gigawatt-hours in 2017, representing a 4-percent increase from 2016.

Union Bank of the Philippines posted a net income of P8.4 billion in 2017, or 17 percent lower than P10.1 billion in 2016, in the absence of one-off trading gains.

AEV’s non-listed food subsidiaries―Pilmico Foods Corp., Pilmico Animal Nutrition Corp. and Pilmico International Pte. Ltd.--reported a net income of P1.70 billion, or 2 percent lower than 2016’s P1.73 billion.

source: http://thestandard.com.ph/business/corpo...come-.html


Pilmico sets P9-B capex for 3 yrs

Pilmico Foods Corp., the food subsidiary of Aboitiz Equity Ventures Inc., has earmarked about P9 billion for capital expenditure (capex) in the next three years to support expansion plans, a top company official said.

Pilmico CEO Sabin Aboitiz said on the sidelines of a press conference on Friday that the amount would be used partly to expand the capacity of the firm’s feed mills in Tarlac and Iligan.

Aboitiz said Pilmico farms would also be expanded.

He said that each mill, which individually has a capacity of 60 tons per hour (TPH), would be beefed up to raise the capacity by 20 TPH in the next two years.

Moreover, he said the company had been preparing to introduce a digital strategy in their operations, which would allow farmers to order products online.

This came as the Aboitiz subsidiary partnered on Friday with the Department of Trade and Industry to expand its network and further develop the entrepreneurship skills of backyard farmers.

In the meantime, he said Pilmico was still waiting for a permit from the Department of Agrarian Reform (DAR) to convert an agricultural land in Tarlac for industrial use.

This would be a meat fabrication plant, which would have a capacity of 120 swine heads per hour, he noted.

The meat fabrication plant will be equipped with a cold storage facility.

He deferred from disclosing further details of the digital strategy. In a nutshell, he said they wanted “to connect the farms and the [wet] markets.”

Pilmico currently distributes Aqua Feeds in the Vietnamese market. He said they were planning to reach more countries in Southeast Asia through Vietnam.

He said the company was eyeing to expand to Thailand and Cambodia through Vietnam.

source: http://business.inquirer.net/247505/pilm...apex-3-yrs


Aboitiz says gov't refused proposal for 4 regional airports

MANILA - Aboitiz Equity Ventures Inc (AEV) said Monday the government refused to accept its unsolicited proposal to upgrade 4 regional airports since such projects should undergo public bidding.

Aboitiz InfraCapital Inc (AIC) in March offered to rebuild, operate and maintain the Iloilo International Airport, Bacolod-Silay Airport, Laguindingan Airport, and the New Bohol International Airport in Panglao for P148 billion.

Aboitiz Group submits P148 billion unsolicited proposal to modernize 4 regional airports
The Department of Transportation said it "cannot accept the proposal" since it adopted a policy wherein such projects should be offered for bidding, AEV told the stock exchange.

"While AIC believes its proposal is a very efficient solution to address the immediate need of the airports in the most expedient and comprehensive way, we understand the DOTr’s decision to take a different course," AEV said.

The Aboitiz infrastructure unit is "committed" to supporting infrastructure development, AEV said, adding, "We look forward to receiving the final details of the upcoming tender and will continue supporting the development of the regional airports."

source: http://news.abs-cbn.com/business/04/10/1...l-airports


Aboitiz Group more than doubles spending for 2018

CONGLOMERATE Aboitiz Equity Ventures, Inc. (AEV) is allocating P77 billion for capital expenditures (capex) this year, which is more than double the budget in 2017, as more projects are set for construction in the coming months.

Of this amount, P60 billion will go to its power subsidiaries, up to P5 billion will be spent to strengthen its food, cement, and property businesses, and the remainder will be used to fund its banking unit’s technological improvements.

“Part of the reason why our capex is high this year is that we were initially hoping for P50 billion (spending) last year, but I think the numbers ended up at P35 billion to P40 billion because some of our projects, like the Apo Agua that was supposed to start last year, are now starting in 2018,” AEV chief finance officer Manuel Lozano said in a chat with reporters late Friday.

“So the amount this year is a bit bigger than probably what we’re looking at a year ago, but mostly because of the things that were [rescheduled],” he added.

In the next few months, the Aboitiz Group and JV Angeles Construction Corp. through joint venture firm Apo Agua Infrastructura, Inc. will commence the construction of a P14-billion bulk water supply project in Davao City after finally having secured the necessary permits including the engineering, procurement, and construction (EPC) contract.

The project is targeted to be completed by 2020 and will provide 300 million liters per day of potable water upon full operation.

Funding for the project will come from local bank financing.

 “Apo Agua, for me, is key. It will be our first chance to really build something. It’s substantial in size. We’re looking at capex of about P13 billion to P14 billion and serving Davao City so I think it would be a nice showcase for future projects for us,” Lozano said.

“All of them [Davao residents] are using deep wells to provide water so I think it’s challenging for them to continue to expand…So I think they really need to look for an alternative source, so I’m not so worried about the demand. With all the industrialization that’s happening in Davao City, I think the demand may even grow faster than what everyone is anticipating,” he added.

The Aboitiz Group is also looking at more areas across the country that are in need of bulk water supply as well as more infrastructure projects.

“We have a team that’s looking at many projects but I’m not sure if any of them are imminent,” Lozano said.

Aboitiz Equity is a conglomerate owned by the Aboitiz family whose subsidiaries include AboitizLand Inc., AboitizPower Corp., PETNET, Inc., Pilmico Foods Corp., and UnionBank of the Philippines, among others.

source: http://www.manilatimes.net/aboitiz-group...18/394305/


Aboitiz Equity Ventures net income up by 3% in Q1 2018
The net income of the Aboitiz Group's holding firm increases to P4.8 billion for the January to March period, from P4.7 

MANILA, Philippines – Aboitiz Equity Ventures Incorporated (AEV), the holding firm of the Aboitiz Group, saw a slight increase in its net income for the January to March period due to lower one-off foreign exchange losses.

AEV told the Philippine Stock Exchange (PSE) on Thursday, May 3, that its consolidated net income reached P4.8 billion in the 1st quarter of 2018.

The figure is up 3% compared to the P4.7 billion in the same period last year, which the firm attributed "to lower one-off losses representing net unrealized foreign exchange losses."

"Our diversified portfolio gives us the resilience to sail through varying business cycles. The underlying strength of our core operations and a vibrant economy keep us optimistic on our long-term fundamentals," said AEV president and chief executive officer Erramon Aboitiz in a statement.

Power, food down; banking up
Power remained the biggest contributor to AEV's income at 64%, followed by banking & financial services at 30%, food at 6%, land at 1%, and infrastructure at -1%.

The firm's core power arm, Aboitiz Power Corporation (AboitizPower), saw its income contribution to AEV fall 9% year-on-year from P3.4 billion to P3.1 billion. But AboitizPower's core net income rose by 4% to P5.2 billion from P5 billion, due to lower foreign exchange losses.

Union Bank of the Philippines (UnionBank), meanwhile, saw its net income contribution increase from P1.1 billion to P1.4 billion, driven by higher revenues.

The net income contribution of Pilmico Foods Corporation and its subsidiaries also dropped 10% to P264 million from P292 million, due mostly to the higher cost of raw materials and operating expenses.

AboitizLand Incorporated's net income contribution rose by 18% year-on-year to P59 million, amid increased borrowing expenses for the funding of developments.

As for Republic Cement & Building Materials Incorporated, its contribution to AEV decreased 140% year-on-year, from a P202-million net income to a net loss of P82 million. This was mainly due to energy input costs which went up.

AEV's infrastructure division, Aboitiz InfraCapital Incorporated, had been rejected by the government earlier this year after it submitted a P148-billion unsolicited proposal to upgrade and run 4 regional airports.

But Aboitiz InfraCapital is also part of a consortium proposing to upgrade and run the Philippines' main gateway, the Ninoy Aquino International Airport.

source: https://www.rappler.com/business/201707-...me-q1-2018


AboitizPower seeks greenfield projects in Indonesia, Myanmar

MANILA, Philippines — Aboitiz Power Corp. continues to scout for greenfield projects in Indonesia and Myanmar, while still on the lookout for potential acquisition in the Philippines, top officials said.

In a briefing after the company’s stockholders’ meeting Monday, Aboitiz Equity Ventures Inc. president and CEO Erramon Aboitiz said the thrust to pursue new power investments outside the country, particularly in Indonesia and Myanmar, remains a priority of the Aboitiz Group.

“We are continuing to look at greenfield developments in both Indonesia and Myanmar. These are developing nations. It takes a while before these things actually bear fruit. But definitely the effort is there,” he said.

The two countries are attractive in terms of power investments since these countries are in need of massive power supply.

“To be honest, their need for power makes it compelling. Clearly, those countries continue to grow, they need power and today they’re short of power. So from a demand supply point of view, its a compelling reason for investment,” Aboitiz said.

“It’s still early days as far as regulatory and risks are concerned…it’s really a pioneering effort. But we think that because those countries need the power badly… then it’s a good opportunity to come in early,” he said.

To mitigate risks of unclear regulatory policies, Aboitiz said they are eyeing to partner or take loans from mulitaleral lenders.

Moreover, those countries are part of the larger ASEAN continent where power could be exported within the region, AboitizPower president and COO Antonio Moraza said in the same briefing.

“One of the aspects I find encouraging about Myanmar and Indonesia is that they’re part of the large continent. So the possibility of producing in one country and exporting in another, it’s there,” he said.

Since a lot of capacity would be needed, power supply would be covered by long-term bilateral contracts which could allow power companies to have a view of prospective revenue, Moraza said.
In terms of technology, AboitizPower is focused on hydropower investments in those countries.

“At the moment, our primary interest is hydro. We’ve also looked at some solar opportunities. The large hydro is generally the areas we’re interested,” Moraza said.

At home, the AboitizPower firm is also on the lookout for potential acquisitions when asked if they are interested in the thermal assets of AC Energy, the power business of Ayala Corp.  

source: https://www.philstar.com/business/2018/0...ia-myanmar


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