Listed firms’ earnings grow to P232B in 1st half

The combined net earnings of listed firms in the first half of 2010 increased by 20.1 percent to P232.2 billion from P193.36 billion year-on-year while consolidated revenues of listed companies also rose by 20.1 percent, reaching P1.57 trillion as compared with P1.31 trillion in the previous year.

Philippine Stock Exchange (PSE) president Val Antonio Suarez said the modest rise in the combined net income of listed firms was largely due to the increase in their business activities across all sectors.

“This is an indication of a broad-based growth among our listed firms, which is consistent with the strong performance of the local economy. The general economic environment has also been very conducive for businesses with stable inflation rates and interest rates kept at low levels,” Suarez added.

Companies forming part of the PSE index (PSEi) reported a 7.5 percent increase in their combined net earnings during the first half. Data came from the financial statements of 232 companies of the total 248 domestic firms listed on the stock exchange.

The mining and oil sector led the growth in net earnings for the first half as it surged 275.2 percent led by activities of Semirara Mining Corp. and Atlas Consolidated Mining and Development Corp.

Semirara’s acquisition of a new mining equipment coupled with the integration of its mining and power generation business boosted the company’s gross operating revenues to P13.01 billion as compared with the previous year’s P6.36 billion while Atlas also commissioned a new ball mill during the period which elevated its revenues to P3.738 billion from last year’s P1.484 billion.

The net earnings of holding firms soared by 100.5 percent which was led by First Philippine Holdings Corp.’s sale of its 6.7 percent stake in Manila Electric Co. (Meralco) and also pushed up the equity in net earnings of associates of Lopez Holdings Corp. by 22 times to P10.64 billion from last year’s P474 million.

In addition, income from new generation assets acquired by Aboitiz Power Corp. started to kick in which boosted the income contribution of APC to its parent company, Aboitiz Equity Ventures, Inc., to P9.71 billion from P1.21 billion in the previous year.

Meanwhile, JG Summit Holdings Inc.’s revenues increased from P52.95 billion to P60.76 billion largely due to the upsurge in net sales of Universal Robina Corp., and backed by higher sales volume and selling prices.

For the bank sector, the expansion of most banks’ net interest income shored up the financial sector’s net earnings by 26.8 percent while the property sector also posted a 25.3 percent jump in net profits due to newly launched and completed projects in the first six months.

First Philippine Holdings Corp. topped all income gainers in the first six months of the current year as it recorded a gain of P23.6 billion from the sale of its stake in Meralco which consequently pulled up the industrial sector’s earnings  by 2.8 percent. Aboitiz Power Corp. and San Miguel Brewery Inc.’s net earnings were buoyed by income contributions from its new acquisitions for the year.

On the other hand, the services sector showed a drop in its combined net earnings by 9.4 percent for the period due largely to non-recurring gains the previous year and an increase in operating expenses of some firms. –Danessa O. Rivera, Daily Tribune