Ayala Corp., the country’s oldest conglomerate, on Thursday said its net income for the first three months of the year expanded by 15 percent to P5.8 billion, buoyed by its real estate, power generation, and automotive sectors.
In a disclosure to the Philippine Stock Exchange, Ayala Corp. said its net earnings from January to March grew by 15 percent to P5.8 billion versus the P5.04 billion realized during the same period last year.
Meanwhile, equity earnings contribution from the conglomerate’s business units rose 11 percent to P7.2 billion compared with the P6.48 billion posted from the similar period from a year before.
Ayala Land Inc. and Manila Water Co. Inc. enjoyed double-digit growths in equity earnings contribution, up 16 percent and 13 percent, respectively, while Ayala Automotive recovered with equity earnings contribution expanding five times, mainly because of the strong sales of the Isuzu and Honda brands as its Volkswagen sales started to ramp up.
“As we conclude our medium-term plan this year and embark on a new five-year growth strategy, we are encouraged by the upbeat first quarter results of our businesses. We believe the Philippines continues to be fundamentally strong, and we expect most of our businesses to continue growing at a healthy pace,” Fernando Zobel de Ayala, president and chief operating officer of Ayala Corp. said.
Ayala Land registered a 14 percent growth in net income to P4.7 billion compared with the P4.12 billion last year on account of robust residential, office space sales and commercial leasing segments and higher margins across all product lines.
Globe Telecom Inc., however, only grew its net income by 3 percent to P4.3 billion from the previous year’s P4.17 billion, as its earnings were weakened by P6.2 billion in depreciation expenses.
Bank of the Philippine Islands reported a net income of P5 billion in the first quarter of the year, up by a percent year-on-year from P4.93 billion as its core lending business, non-interest income, and securities trading continue to improve.
Manila Water registered a 3 percent growth in net income to P1.5 billion for the period on improved East Zone operations, backed by strong topline growth of its domestic businesses.
Integrated Microelectronics Inc., meanwhile, reported a net income decline of 4 percent to $6.5 million (or P311 million) in the first quarter from $6.7 million as the company continued its shift from low margin products to new platform technologies.
AC Energy sustained its positive earnings trajectory, generating a net income of P250 million in the first quarter as its power projects achieved more efficient operating levels.
At present, AC Energy has approximately 650 megawatts (MW) in attributable capacity across its conventional and renewable investments.
With financial close of the first unit of the 2×660 MW GN Power Diningin plant expected in the third quarter of this year, AC Energy is set to achieve its goal of assembling 1,000 MW of attributable capacity by the end of 2016.
Finally, its transport unit AC Infrastructure realized net profits of P23 million following the systems takeover of LRT1 in September last year.
AC Infrastructure currently has three public-private partnership projects in its portfolio composed of the four-kilometer Muntinlupa-Cavite Expressway, the Beep ticketing system and the extension and operations and maintenance of LRT1.