Listed firms’ 1H earnings rose a fifth, says PSE

The combined net income of listed firms grew a fifth in the first six months because of the strong performance of the economy, according to the local bourse. In a statement, the Philippine Stock Exchange(PSE) said the combined earnings of listed companies jumped 20.1 percent to P232.2 billion from P193.36 billion during the same six-month period last year.

Consolidated revenues also expanded by 20.1 percent to P1.57 trillion from P1.31 trillion.

“This is an indication of a broad-based growth among our listed firms, which is consistent with the strong performance of the local economy,” Val Antonio Suarez, PSE president and chief executive officer, said.

“The general economic environment has also been very conducive for businesses with stable inflation rates and interest rates kept at low levels,” he added.

The profit data came from the financial statements of 232 out of the 248 domestic firms listed on the stock exchange.

Companies that comprise the PSE index (PSEi) booked a 7.5-percent rise in their combined earnings during the first semester.

Profits of most counters also grew in the first six months except for the services sector, the earnings of which slipped by 9.4 percent due largely to non-recurring gains the previous year and an increase in operating expenses of some firms.

The mining and oil counter accounted for the biggest growth in the first half, surging 275.2 percent led by Semirara Mining Corp. and Atlas Consolidated Mining and Development Corp.

Holdings firms doubled their earnings because of First Philippine Holdings Corp.’s sale of its 6.7-percent stake in Manila Electric Co. (Meralco), as well as income from new generation assets of the Aboitiz Group.

The growth in the net interest income of most banks shored up the financial sector’s earnings by 26.8 percent. The property sector recorded a 25.3-percent jump in earnings because of newly launched and completed projects in the first six months.

First Holdings topped all income gainers in the first six months with a gain of P23.6 billion from the sale of its stake in Meralco, pushing the industrial sector’s earnings by 2.8 percent. –KRISTA ANGELA M. MONTEALEGRE, Manila Times