Listed companies post 22% growth in profit

Publicly listed local companies grew their cumulative profit by 22.2 percent in 2010, with many of them posting record-high incomes.

The combined net income of listed firms increased to P440.72 billion from P360.63 billion in the previous year, the Philippine Stock Exchange reported based on annual financial statements filed by companies.

Companies belonging to the PSE index, or PSEi, the roster of blue chips, outperformed the overall market as they posted combined earnings by 48.1 percent growth to P286.53 billion in 2010 from a year before. All sectors showed improved performance except for services, which was weighed down by the telecom sector.

Total corporate revenues were likewise up by 20.4 percent to P3.24 trillion from a year earlier.

Corporate earnings reflect last year’s remarkable market performance and should “follow the same positive trend in the first quarter (of this year) given the healthy economy and favorable market movements,” PSE president Hans Sicat said in a statement. As of end-May, he noted that PSEi had advanced by 43.5 points, or 1 percent, year to date at 4,244.64 points.

The mining and oil sector registered the highest growth in 2010 net income at 273.9 percent, mainly due to higher sales volumes from new acquisitions. Specifically, the PSE noted that Benguet Corp. had recorded extraordinary earnings from the gain on settlement of liabilities and a nonrefundable deposit from its Kingking project. Additional earnings were also culled from the company’s nickel and gold operations.

Another outstanding performer in the mining counter was Semirara Mining Corp., which booked higher energy sales from the company’s investment in SEM-Calaca Power Corp. Its coal revenue surged on higher sales volume. The sector’s biggest player, Philex Mining Corp., also benefited from higher revenue from gold and copper production.

The holding firms’ sector 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 from Aboitiz Power Corp. Universal Robina Corp. and Cebu Pacific Air, both of which are subsidiaries of JG Summit Holdings Inc., more than doubled their profits. SM Investments Corp. also reported higher net income due largely to new store openings and new condominium projects launched, which lifted retail, real estate and rental sales.

Trading and foreign exchange gains boosted the financial sector’s performance, posting a 42.9-percent growth. Security Bank Corp. reported a surge in revenue from increases in trading, securities and foreign exchange gains. Leading players Bank of the Philippine Islands, Banco de Oro Unibank and Metropolitan Bank and Trust Co. also benefited from the upswing of trading gains that complemented interest earnings.