PSE-listed firms grew net profit by 18%

A general shot of the Philippine Stock Exchange in Makati. INQUIRER FILE PHOTO

MANILA, Philippines—Publicly-listed Philippine corporations expanded cumulative net profits by nearly 18 percent year-on-year in the January to September period last year as the country’s above-trend growth rate buoyed earnings.

In a research published on Monday, the Philippine Stock Exchange said combined net incomes of listed companies rose to P377.12 billion in the nine-month period from P319.97 billion in the previous year.

The higher profitability was supported by a 20.1-percent year-on-year increase in cumulative consolidated revenues to P3.29 trillion from P2.74 trillion during the nine-month period.

Data was gathered from the financial statements of 229 out of 252 listed companies submitted during the period between October 1 and December 14.

“Corporate earnings continue to be strong in 2012. The growth in nearly all sectors has also demonstrated the strength of the Philippine economy which, barring any negative circumstances, should continue to support expansion next year,” PSE president and chief executive officer Hans Sicat said.

Five out of six sectors recorded positive net income growths during the first nine months of 2012, with the industrial sector as the best performer. On the other hand, the mining/oil counter was the laggard and the only counter that recorded a slowdown in profits.

“We’ve seen positive income growth from listed firms for the last three quarters. Companies have been positioning themselves to take advantage of the burgeoning economy, which should enable them to create more profits. The exchange, for its part, continues to encourage companies in utilizing the market to raise capital and fund their expansionary activities,” Sicat added.

The consolidated income of the industrial sector increased by 52.1 percent year-on-year due to gains on the sale of interests in subsidiaries, and increased equity in net earnings of associates, among other items.

Meanwhile, securities trading gains was the main proponent for the 26.6 percent year-on-year net income increase in the financials sector. Most of the country’s listed banks are set to end the year with record-high profits.

Combined profits of the holding firms sector increased by 22.7 percent year-on-year mainly due to improved income contributions of subsidiaries and associates.

Consolidated income of the property sector increased by 16.1 percent year-on-year as a result of increased real estate sales, and improved rent revenues from newly opened malls.

The combined income of the services sector went up by 4.5 percent after benefitting from nonrecurring gains, and new store openings among others.

On the other hand, the mining & oil sector’s aggregate income dropped by 57.7 percent year-on-year in the absence of one-time gains, effects of suspended mining operations and lower nickel prices in the world market.

On a topline basis, five out of six sectors also registered higher revenues, with the industrial sector again leading the way with a 25.6-percent year-on-year jump.