Listed firms' profits down 29% in 2008
abs-cbnNEWS.com | 05/31/2009 1:45 PM
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Skyrocketing oil and commodity prices, volatility in the financial markets, and the full blown global economic crisis dragged down profits of listed companies by 29 percent last year, according to the Philippine Stock Exchange (PSE).
In a statement Sunday, the PSE reported that the combined net income of publicly listed firms dropped to P198.91 billion in 2008 from P281.54 billion in 2007, a banner year.
"2008 was not an easy year for most of us. The lower net income figures reflected this reality. The decline in the figures is further compounded by the fact that all companies were trying to beat very high profit figures churned out during 2007 which was a banner year for the economy and for many corporations," PSE President and Chief Executive Officer Francis Lim said.
Lim noted, however, that revenues of listed firms grew 12.8 percent to P2.67 trillion from P2.37 trillion.
The recent data were culled from the latest financial statements submitted by 233 out of 246 listed companies. Of the 233 reporting firms, 159 posted net gains while the remaining 74 posted net losses.
The total net income of those comprising the PSE index fell 22.1 percent to P148.8 billion in 2008, from P190.89 billion in 2007. This represented 74.8 percent of the total net income of the 233 reporting listed companies.
Among the six sectors of the PSE, the property sector fared better than the rest, with the combined net income of companies in this sector posting flat growth last year. The remaining five sectors registered net income declines.
The financial sector recorded the biggest net profit contraction in 2008 at 41.06 percent as the volatility in financial markets hit banks' trading incomes.
The holding firms and mining and oil sectors followed, with their aggregate net incomes deceasing by 39.56 percent and 38.29 percent, respectively. The combined incomes of companies in the services and industrial sectors likewise contracted by 34.67 percent, and 13.8 percent, respectively.
Companies in the services sector had the largest share in total income of listed companies at 27.07 percent, followed by industrial and holding firms sectors at 24.83 percent and 18.84 percent.
"We are in the process of compiling the net income figures of our listed companies for the first quarter of 2009. Looking at the positive market performance in the first quarter, I have reason to believe that many listed companies are faring better so far this year compared with last year," Lim said.
For full-year 2008, Philippine Long Distance Telephone Co. (PLDT) recorded the highest net income of P34.64 billion, albeit 3.8 percent lower than its income a year ago.
According to the country's top telecommunications provider, its profits were eroded by foreign exchange losses due to the revaluation of its foreign-denominated liabilities. Net losses registered by its information communications and technology business, as a result of an increase in expenses and lower income tax benefits, also pulled down its net income for the year.
After PLDT, the other top four companies which recorded the highest net income last year were San Miguel Corp. (SMC), with P19.35 billion; SM Investments Corp. (SMIC), with P14 billion; Pilipino Telephone Corp. (Piltel), with P11.35 billion; and Globe Telecom Inc. with P11.28 billion.
SMC topped the list of companies with the highest nominal gain in net income at P10.72 billion due to non-recurring gains from the sale of investments in KSA Realty Corp. and its 35-percent stake in the domestic and regional packaging businesses. SMC’s earnings were also boosted by the income from the initial public offering of San Miguel Brewery, Inc. (SMB) and gains from the sale of its Quezon City property.
SMB, Cosmos Bottling Corp., Piltel and SMIC completed the list of the top five companies in terms of nominal net income increases.
Meanwhile, LMG Chemicals Corp. (LMG) had the highest net income growth of 3,912.2 percent to P297.80 million in 2008 from P7.42 million a year ago due to a P269 million gain from the sale of its investments in its unit, LMG Land Development Corp. ATN Holdings, Inc., Solid Group, Inc., Chemical Industries of the Philippines , and Alcorn Gold Resources Corp. rounded up the top five, as their net incomes grew by 3,839 percent, 1,433 percent, 757 percent, and 696 percent, respectively.
Petron Corp. was leading in terms of gross revenues, with P268.03 billion in 2008, which was due mainly to gasoline price hikes during the first half of the year. Petron’s full-year revenue grew 26.6 percent year-on-year.
Summing up the top five listed corporations in terms of gross revenues were Manila Electric Co., SMC, SMIC, and PLDT, with gross revenues of P194.55 billion, P183.42 billion, P153.36 billion, and P152.73 billion, respectively.
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