Listed firms’ profits surge 61% in 9 months

MANILA, Philippines – The combined earnings of companies listed on the Philippine Stock Exchange (PSE) surged 60.8 percent in the first nine months of the year to P283.76 billion on the back of improving global conditions, a new study on the performance of the publicly traded firms revealed.

Consolidated revenues of listed companies rose 3.1 percent to P1.96 trillion from P1.90 trillion a year earlier.

“A significant part of the increase in the net earnings can be attributed to the entry of various investors in some of our listed companies, which is generally a testament to their growth prospects. We also admire how our listed companies managed to control their costs and take advantage of the opportunities amidst the economic slowdown,” said Philippine Stock Exchange (PSE) president and chief executive officer Francis Lim.

Data was gathered from the financial statements of 231 companies out of the total 246 listed domestic firms.

“The rise in corporate earnings provides fundamental support to the recovery of stock prices this year,” Lim said.

The PSEi, the main barometer of overall stock market performance, has so far gained 63.5 percent since the start of the year.

Companies comprising the PSEi recorded a 42.8 percent jump in net earnings during the period under review. However, the net income share of PSEi companies to the total net earnings of all listed firms dropped to 66.4 percent from 74.8 percent in 2008.

In terms of sectors, the total net earnings of holding firms almost doubled in the first nine months, buoyed by the improvement in the net earnings of Benpres Holdings Corp., JG Summit Holdings Inc. and Aboitiz Equity Ventures.

Net earnings of the industrial sector climbed 84.9 percent mainly due to the P50.5 billion gain from the sale by San Miguel Corp. of a 43.25 percent stake in San Miguel Brewery to Japanese brewer Kirin in May 2009. Other companies that provided a significant boost to the earnings of the sector were First Philippine Holdings Corp. and the Manila Electric Co. (Meralco).

Net earnings from the services sector increased P24 billion mainly due to the gains posted by telecommunication firms Pilipino Telephone Corp., Philippine Long Distance Telephone Co. (PLDT), and Digital Telecommunications Phils. Inc.

Meanwhile, softer fuel prices trimmed down expenses of transportation services companies such as PAL Holdings Inc.

The total earnings of companies lodged under the financial sector soared 49.9 percent owing to the improved interest earnings of most banks. Recovery from investments in foreign exchange and trading securities also propped up the earnings of Banco de Oro Unibank, Inc., Bank of the Philippine Islands, Union Bank of the Philippines and Philippine National Bank.

Net profits of companies in the property sector slid 4.9 percent primarily due to the absence of one-time gains compared with investments recognized in 2008.

Meanwhile, the mining sector’s earnings suffered from lower copper prices and volumes produced as well as negative results from foreign exchange transactions. –Zinnia B. Dela Peña (The Philippine Star)