Listed firms' income up 20% to P232-B in H1

ABS-CBN News

Posted at Oct 19 2010 01:26 PM | Updated as of Oct 19 2010 09:26 PM

MANILA, Philippines - The combined net earnings of listed firms rose 20.1% to P232.2 billion in the first 6 months of 2010 from P193.36 billion in the same period last year, with growth observed across all sectors, the Philippine Stock Exchange (PSE) said Tuesday.

Their consolidated revenues also rose by 20.1% to P1.57 trillion from P1.31 trillion in 2009.

PSE president and chief executive officer Val Antonio Suarez said the "broad-based" growth among listed firms was consistent with the strong performance of the local economy.

"The general economic environment has been very conducive for businesses with stable inflation rates and interest rates kept at low levels," he noted.

Companies that make up the PSE index, the main barometer of overall stock market performance, reported a 7.5% increase in net income to P92.78 billion in the January to June period as revenues climbed 27.66% to P472.36 billion.

Of the 248 listed firms, 232 recorded positive income figures.

In terms of sectors, the PSE said all, except for the services sector, recorded better earnings.

Total earnings of the mining and oil surged 275.2% in the first half, driven by activities of Semirara Mining Corp. and Atlas Consolidated Mining and Development Corp.

Net income of holding firms went up 100.5%, owing to sale of First Philippine Holdings Corp.'s (FPHC) 6.7% stake in Manila Electric Co. (Meralco), and income from new generation assets acquired by the Aboitiz Group.

Meanwhile, the expansion of most banks' net interest income shored up the financial sector's net earnings by 26.8%. The property sector also posted a 25.3% jump in profits due to newly launched and completed projects in the first 6 months.

FPHC topped all income gainers in the first 6 months after it recorded a gain of P23.6 billion from the sale of the Meralco stake. This consequently pulled up the industrial sector's earnings by 2.8%.

On the other hand, the services sector showed a 9.4% drop in its combined net earnings due largely to non-recurring gains in the previous year and an increase in operating expenses of some firms.