MANILA, Philippines – Publicly listed firms in the Philippines saw their combined profits drop 10 percent to P308.86 billion in the nine months through September, dragged down by industrial, services and holding-firm sectors and higher input costs, the Philippine Stock Exchange (PSE) said in a statement.
Revenues, on the other hand, rose 15.4 percent to P2.78 trillion, led by financial, property and mining firms, highlighting continued growth.
“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 Sicat said.
“However, despite the uncertainties in the global landscape, particularly in the euro zone and US, some key sectors have managed to post higher net income figures,” Sicat added. “This confidence has been reflected in the PSEi, which continues to be a top performer in Asia this year.”
In terms of sectors, the financial sector’s collective income rose by 17.1 percent to P53.09 billion during the nine-month period. 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 combined income of P31.08 billion, or 19.4 percent higher than last year. A nonrecurring gain from the sale of investment in available-for-sale shares boosted Megaworld Corp.’s net income by 62.8 percent while increased revenues from real-estate sales through improved sales volumes of both residential units and commercial lots lifted the net incomes of Ayala Land Inc. and SM Development Corp.
The mining and oil sector’s aggregate income also surged 162.8 percent to P21.25 billion as average global metal prices improved. Philex Mining Corp.’s revenue from gold and copper grew by 50.7 percent and 17.3 percent, respectively, leading to an overall income growth of 102.9 percent in the first nine months of 2011.
Semirara Mining Corp.’s local and international sales of coal increased by 10 percent as average coal prices jumped by a third. Similarly, Nickel Asia Corp.’s net income rose 131.9 percent with the increase in nickel-ore prices.
On the other hand, the industrial sector registered a P42.62-billion, or 35.3-percent decline in collective income which totaled 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 Inc., respectively.
Likewise, the services sector posted a lower net income of P51.95 billion, down by 16.6 percent from P62.26 billion a year ago. PAL Holdings Inc. registered a 168.1-percent decline in net profit as its passenger revenues were pulled down by the peso-dollar exchange rate fluctuations. The 44.1-percent jump in average aviation fuel prices caused a significant increase in Cebu Air Inc.’s operating expenses, bringing about a 54-percent drop in net income. The decline in service revenues resulting from lower volumes of domestic and international calls caused a 4.3-percent drop in Philippine Long Distance Telephone Co.’s profits.
The 9.6-percent decline in the holding firms’ consolidated income to P73.38 billion was largely attributed to lower net earnings in associates or subsidiaries. Lopez Holdings Corp. experienced a 73-percent decline in net income mainly due to overall lower income generated by its associates, First Philippine Holdings and ABS-CBN Corp.
JG Summit Holdings Inc.’s net income declined 40 percent as its stake in the profits of Cebu Air decreased following its initial public offering last year.