PSE-listed firms’ earnings surge to P137 billion in first quarter

MANILA, Philippines – The aggregate net earnings of listed firms in the first quarter this year surged 113.9 percent on improved performances across all sectors, data released by the Philippine Stock Exchange (PSE) showed.

Combined net income jumped to P137.08 billion from only P64.08 billion a year earlier in spite of the declines posted by hotel and leisure, oil and the telecommunications sub-sectors.

Consolidated revenues, on the other hand, rose 28.8 percent to P771.71 billion

“The first quarter results exhibited the strong recovery of our listed companies under a more favorable economic environment. On top of gains recorded from asset sales, companies also benefitted from increased demand and gains from foreign exchange operations and investments held during the first quarter,” PSE chief operating officer Val Antonio B. Suarez said.

The blue chip companies that make up the main PSE index likewise reported a 104.4-percent spike in net earnings to P92.78 billion, with revenues likewise expanding 27.66 percent to P472.36 billion.

A total of 162 domestic companies recorded positive income figures while only 60 companies posted net losses.

In terms of subsectors, the combined net earnings of companies in the industrial sector surged 294.3 percent to P60.59 billion led by First Philippine Holdings Corp. (FPH) after the sale of its shares in Manila Electric Co. (Meralco) worth P23.6 billion. Power generation assets acquired in 2009 generated a P7.5-billion income contribution to Aboitiz Power Corp. San Miguel Brewery Inc.’s (SMB) earnings were buoyed by the purchase of San Miguel Brewing International Ltd. in January which pitched in P2.99 billion to SMB’s earnings.

The income contribution from listed companies’ affiliates boosted the holding firms’ net income by 187.9 percent to P33.6 billion.

FPH drove up Benpres Holdings Corp.’s equity in net earnings of associates to P10.56 billion in the first quarter from P115 million in the same quarter the previous year. Meanwhile, Aboitiz Power chipped in P5.68 billion to Aboitiz Equity Ventures Inc.’s revenues. A stronger peso lifted revenues of JG Summit Holdings Inc. as it booked foreign exchange gains of P1.32 billion during the period.

On the other hand, higher cost of sales and foreign exchange losses dragged earnings for the oil subsector by 41.4 percent. The service sector’s net income for the period was also relatively flat at 1.5 percent.

The expansion in Banco de Oro Unibank Inc.’s loan portfolio resulted in a 19-percent jump in its net interest income which further boosted the financial sector’s earnings 33.6 percent to P14.27 billion. Also contributing to the subsector’s expansion is Metropolitan Bank and Trust Co. which saw its operating income grow due to higher income from trading and foreign exchange transactions, among others.

The combined net earnings of the property subsector rose 18.4 percent to P8.02 billion largely due to realized profits from new projects completed in the first quarter. Also during the period, SM Development Corporation booked a gain of P6.2 million from the sale of investments held for trading and available-for-sale investments. Such investments represent securities and other financial investments that are intended to be held over the short-term and those that are held to maturity. –Zinnia B. Dela Peña (The Philippine Star)