MANILA, Philippines — Corporate revenues of companies listed at the Philippine Stock Exchange (PSE) grew 17.5 percent to P3.80 trillion in 2011, from P3.24 trillion in 2010 as nearly all sectors registered higher revenues, led by the Mining Oil Sector leading the growth.
However, the PSE said combined net earnings of listed firms decreased by 1.9 percent to P429.96 billion in 2011 from P438.09 billion in 2010 due to lower net profits recorded by the Industrial and Services Sectors which suffered from the absence of non-recurring gains from 2010.
“The rise in revenues by 18 percent is significant against a backdrop of lower economic expansion in 2011. We hope however, that net earnings recover with higher economic activity expected this year given the positive macroeconomic and financial indicators we’ve seen so far,” said PSE president Hans Sicat.
Sicat noted that, “we believe our investors remain confident in the profitability and potential of our listed companies, as seen in the continued increase in share prices in the past few months, and by virtue of the performance of our main index the PSEi which broke record highs 19 times already this year.
Sicat added that “hopefully, this confidence will be further validated as listed firms report their first quarter results.”
Four out of six sectors recorded positive net income growths last year led by the Mining and Oil Sector which surged by 198.6 percent behind higher average global metal prices and improved production levels.
On the other hand, collective net income of companies in the Industrial Sector declined 25.7 percent as companies in the power sector were set back by several factors.
These include the absence of significant one-time gains from the previous year, higher maintenance expenses and impairment losses as well as lower collections due to lower average prices on the Wholesale Electricity Spot Market (WESM).
Meanwhile, the Services Sector suffered decreased net incomes mainly due to lower earnings from companies in the telecommunications and transport sub-sectors.
Combined net incomes of companies in the Holding Firms Sector rose 4.9 percent. Corporate acquisitions, corporate divestments and strong operating results from conglomerates enhanced the returns of companies in the Holding Firms Sector.
Increases on interest on loans and receivables, gains from trading, and higher revenues from service fees and charges helped improve the bottomline of companies in the Financial Sector.
Companies in the Property Sector registered a 20.7 percent increase in their combined income. Increased revenues from real estate sales through improved sales volumes of both residential units and commercial lots, and higher rental revenues expanded the sector’s aggregate earnings.