Net profit of listed firms jumps 26% to P271B

The combined net profit of companies listed on the local stock exchange rose by 26.4 percent to P271.02 billion in the first semester from a year ago as corporate Philippines benefited from the country’s buoyant economic growth during the period.

Five out of six sectors recorded positive net income growths during the first half, led by the industrial sector, which posted a 62.9-percent jump in combined profit year-on-year. The industrial counter includes the country’s biggest manufacturing and energy companies like San Miguel Corp., Universal Robina Corp., Energy Development Corp., Manila Electric Co. and Aboitiz Power Corp.

The Philippine Stock Exchange reported the cumulative six-month earnings data of 238 listed companies ahead of the upcoming third-quarter corporate earnings reporting season.

“We are optimistic that net income growth will be sustained for the third quarter as listed companies continue to realize profits from the positive local economic climate. The improved earnings data further support investor confidence in our market, which continues to rewrite record highs in various indicators such as index levels, market capitalization, trading activity and capital raising,” PSE president and chief executive Hans Sicat said.

Six-month consolidated revenues of listed companies also increased by 21 percent to P2.24 trillion from a year ago.

By bottom line, only the mining and oil sector posted a total net profit decline (-28.3 percent) in the first half, which the PSE said was generally due to lower production volumes and the absence of one-time gains that lifted earnings in the previous year. The biggest companies in this counter are Philex Mining, Lepanto Consolidated Mining, Semirara Mining and Atlas Consolidated Mining.

Securities trading gains, on the other hand, jacked up the combined six-month net profit of the financial sector by 36.6 percent during the period. The largest companies in this sub-index by market capitalization are Bank of the Philippine Islands, Metropolitan Bank and Trust Co., Banco de Oro Unibank and Security Bank.

Combined net profit of holding firms rose by 25.9 percent due to improved income contributions of subsidiaries and associates. This counter is dominated by the likes of SM Investments Corp., Aboitiz Equity Ventures, Ayala Corp., Alliance Global, JG Summit Holdings, DMCI Holdings and Metro Pacific Investments.

Consolidated income of the property sector climbed by 9.5 percent year-on-year as a result of increased real estate sales and improved rent revenues from newly opened malls. This counter includes Ayala Land, SM Prime Holdings, Robinsons Land Corp., Belle Corp., Megaworld Corp., Filinvest Land and SM Development Corp.

Nonrecurring gains and improved volumes contributed to an increase in the services sector’s combined income. However, this was tempered by higher expenses due to higher costs of sales and operating expenses. As a result, the combined income of this counter inched up by a modest 0.3 percent.

The services index is dominated by Philippine Long Distance Telephone Co. but also includes International Container Terminal Services Inc., Globe Telecom, Puregold Price Club Inc., GMA Network and ABS-CBN Corp.

The 238 companies in the stock market have a combined market capitalization of P10.54 trillion as of end-September.