Listed firms’ net profit up 22% to P441 billion in 2010

MANILA, Philippines –  Aggregate net earnings of companies listed on the Philippine Stock Exchange (PSE) rose 22.2 percent to P440.72 billion last year amid improvements in the macro-economic environment, especially the lower interest and inflation rates.

The combined revenues of listed companies climbed 20.4 percent to P3.24 trillion from P2.69 trillion in 2009.

Figures were compiled in a study conducted by the PSE based on the financial statements submitted by domestic listed firms.

“Corporate earnings reflect last year’s remarkable market performance and should follow the same positive trend in the first quarter given the healthy economy and favorable market movements,” said PSE president and chief executive officer Hans B. Sicat.

Companies belonging to the PSE index or PSEi, reported a 48.1 percent jump in total net earnings to P286.53 billion, with the mining and oil sector posting the biggest increase at 273.9 percent mainly due to higher sales volumes from new acquisitions.

The holding firms’ sector, meanwhile, registered a 48.5 percent growth in net income driven by robust contributions of various companies’ subsidiaries.

Aboitiz Equity Ventures Inc. benefited from the profit contributions of Aboitiz Power Corp. Universal Robina Corp. and Cebu Pacific Air, both of which are subsidiaries of Gokongwei flagship firm JG Summit Holdings Inc., more than doubled their profits.

SM Investments Corp. also reported higher net earnings due largely to new store openings and improved retail, real estate and rental sales.

The financial sector, led by BPI, BDO, and Metrobank, likewise posted a 42.9 percent jump in net profit owing to higher trading and foreign exchange gains.

The property sector registered a 23.2 percent increase in collective income due to a surge in real estate revenues.

Meanwhile, contributions from newly operational power plants plus the sale of equity in affiliates supported the increase in the net income of the Industry sector. Aboitiz Power Corp.’s newly operational plants – Aboitiz Power Renewable Inc., Pagbilao Power Plant and Sibulan Plant – and the power barges of Therma Marine, Inc. boosted AP’s operating revenues.

On the other hand, First Philippine Holdings Corp.’s sale of a 6.6 percent stake in Manila Electric Co. (Meralco) contributed substantial gains to FPH’s net income.

The Services sector on the other hand recorded a slight drop in net income largely due to one-time gains recorded in 2009 and increase in costs and expenses by some companies in the sector. –Zinnia B. Dela Peña (The Philippine Star)