Listed firms’ 2009 earnings surge to P358 billion

The combined net earnings of listed companies surged by 79.6 percent to P357.84 billion last year, from P199.24 billion in 2008, the Philippine Stock Exchange (PSE) said Tuesday. The PSE said that 174 domestic companies recorded positive income figures in 2009 compared to 60 that reported net losses. “The remarkable growth in net profits was driven by huge one-time gains from asset sales by some listed companies, better performances by nearly all sectors, and a low-base effect when profits declined in 2008," PSE Chairman Hans B. Sicat said. “The asset sales reinforced the view that valuations were too low to ignore and that stocks were worth picking up after the market hit bottom," Sicat added. The PSE index (PSEi) posted a 15-year high in 2009, finishing at 3,052.68 points, or a 63-percent advance year-on-year. It has since advanced by 221.58 points or 7.3 percent to close at 3,274.26 Tuesday. “The surge in combined corporate earnings moved in the opposite direction of the macro-economy in 2009. This is a reflection of investor optimism that discounted signals from the real economy in 2008 which was quite a challenging year," Sicat said. Companies that make up the PSEi posted a 54.9-percent growth in combined net incomes last year. The consolidated revenues also rose by 3.9 percent to P2.72 trillion from P2.62 trillion. Five of the six PSEi subindices posted gains in net incomes. The industrial sector nearly doubled its combined net income, led by San Miguel Corp.’s gain when it sold its 43-percent stake in San Miguel Brewery to Kirin in May 2009. Holding firms’ net income likewise soared by 90.7 percent as JG Summit Holdings Inc. contributed a P2.33-billion market valuation gain. Revenue contributions from companies Benpres Holdings Corp. and Aboitiz Equity Ventures also boosted the sector’s revenue for the year. The financial sector’s 61.1-percent growth in net income, meanwhile, was supported by banks’ improved interest incomes as well as trading gains by some large banks. The service sector posted a 52.4-percent net income surge, partly due to PAL Holdings Inc.’s lower expenses with cheaper fuel costs. A stronger peso also resulted in foreign exchange gains for dominant carrier Philippine Long Distance Telephone Co. Property firms SM Development Corp. and SM Prime Holdings, Inc., which recorded high completion rates in their projects, boosted the sector’s 11.8 percent earnings, the PSE said. The mining & oil sector, however, registered weaker consolidated net earnings as on weak sales and higher costs endured by some companies last year. “This year, we have noted a significant recovery in the economy, which should augur well for corporate earnings and the stock market," PSE chief operating officer Val Antonio B. Suarez noted. The country gross domestic product, the sum of goods and services it produced, grew by 7.3 percent in the first quarter. Nikka Corsino/VS, GMANews.TV