Thursday, September 29, 2011
THE Philippine Stock Exchange (PSE) said combined revenues of listed firms grew 15.3 percent to P1.85 trillion in the first six months from P1.6 trillion in the same period last year.
Net earnings of listed firms, however, slipped seven percent to P219.66 billion in the first half from P236.23 billion. The decrease was mainly due to lower net profits recorded by the industrial, holding firms and services sectors.
“Despite the modest growth in listed companies’ revenues for the period, net profits have decreased overall due to several factors, including higher input prices that may have led to increased expenses. Consumer demand also seems to have slowed down as a result of these price pressures, along with the cautious sentiment over adverse developments in the global markets,” PSE president and chief executive officer Hans B. Sicat said.
In terms of sector performance, the industrial sector recorded a 31.1 percent decline in its collective income due to a higher base registered by some firms the previous year, which came from one-time gains.
This was reflected in the decline in the net earnings of First Philippine Holdings Corp.
Decline
Lower sales volume and average selling prices affected the net earnings of Energy Development Corp. and Aboitiz Power Corp. First Gen Corp., on the other hand, posted lower equity in net earnings of associates.
Holdings firms sector reported a 10.3 percent decline in consolidated net earnings largely due to lower net earnings in associates or subsidiaries posted by firms, such
as Lopez Holdings Corp., JG Summit Holdings and Aboitiz Equity Ventures.
Combined net earnings of firms under the services sector dipped by 9.2 percent.
Net profits of airline companies—PAL Holdings Inc. and Cebu Air Inc.—were adversely affected by the spike in average aviation fuel prices.
Meanwhile, the absence of political advertisements pulled down television and radio airtime revenues of ABS-CBN Corp. and GMA Network Inc.
Financials
The financial sector’s collective earnings bucked the downtrend owing largely to improved trading gains and the increase in service charges and fees posted by some banks, such as Banco de Oro Unibank and Union Bank of the Philippines.
Net interest incomes of Metropolitan Bank and Bank of the Philippine Islands grew following increases in interest rates on loans, receivables and trading securities.
The property sector posted a 30.6-percent increase in combined net earnings.
A nonrecurring gain from the sale of investment in available-for-sale shares bolstered Megaworld Corp.’s net income. Increased revenues from real estate sales through improved sales volumes of both residential units and commercial lots also boosted net earnings of Ayala Land, Inc. and SM Development Corp.
Meanwhile, SM Prime Holdings, Inc.’s net earnings registered growth as new malls were opened and old malls underwent expansions.
The mining and oil sector’s aggregate net income surged 184.1 percent as average global metal prices improved.
Philex Mining Corp.’s revenue from gold, copper and silver, petroleum and coal posted double digit growth.
Semirara Mining Corp.’s consolidated revenues from coal and power increased due to higher coal prices. Similarly, Nickel Asia Corp.’s net income rose with the increase in nickel ore prices. (PR)
Published in the Sun.Star Cebu newspaper on September 30, 2011.
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