Listed firms’ profits down 10% to P309 B

MANILA, Philippines – The aggregate profits of companies listed on the Philippine Stock Exchange (PSE) fell 10 percent in the nine months ending September this year to P308.86 billion, data from the PSE showed.

Consolidated revenues, however, rose 15.4 percent to P2.78 trillion from P2.41 trillion, driven by improved performances in the financial, property and mining sectors.

The data gathered the financial statements of 235 companies out of 248 domestic listed companies.

“While it’s good to note that revenues of our listed firms continue to improve, their net incomes had to contend with the challenges in the economy such as rising production costs and lower-than-expected demand,” PSE president and chief executive officer Hans B. Sicat said.

“However, despite the uncertainties in the global landscape particularly in the eurozone and US, some key sectors have managed to post higher net income figures. This, together with the country’s sound fundamentals and exciting growth potential, continue to bolster interest in our listed companies,” he added.

In terms of sectors, the financial sector reported a combined income of P53.09 billion or an increase of 17.1 percent. Contributing to the growth was the increase in net interest income posted by Metropolitan Bank and Trust Co.

Meanwhile, BDO Unibank Inc. and Union Bank of the Philippines posted foreign exchange gains and higher incomes from service charges and fees.

The property sector reported a collective income of P31.08 billion, up 19.4 percent from the previous level. A non-recurring gain from the sale of investment in available-for-sale shares boosted Megaworld Corp.’s net income by 62.8 percent.

Increased revenues from real estate sales through improved sales volumes of both residential units and commercial lots lifted the net incomes of Ayala Land and SM Development Corp. by 32.9 percent and 51 percent, respectively.

The mining and oil sector’s aggregate income also surged 162.8 percent to P21.25 billion as average global metal prices improved.

The industrial sector registered combined earnings of P42.62 billion or a 35.3 percent drop from the previous year’s P78.11 billion. One-time gains recorded in the same period last year caused a 97.4 percent and 23 percent decline in the net income of First Philippine Holdings Corp. and San Miguel Brewery, respectively.

Likewise, the services sector posted a lower net income of P51.95 billion, down 16.6 percent from P62.26 billion a year ago. –Zinnia B. Dela Peña (The Philippine Star)