AYALA PROFIT DOUBLES | Marvin Germo

AYALA PROFIT DOUBLES

By: Marvin Germo | August 14, 2019

Ayala Profits In Q2

While some of the companies incur losses during the first h alf of the year, Ayala Corporation (AC) generated earnings that are more than double during the first 6 months of 2019. The company disclosed that the net income attributable to the parent went up to 135% to P37.84 billion in the first half. Revenues grew by 8% or equivalent to P160.38 billion. These figures are accumulated up to the second quarter since AC did not disclose the number for the latest quarter alone. It’s really good news knowing that the company you are investing in is continuously growing. Here’s some good information about AC’s performance.

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Reasons Behind AC’s Earnings

The company said that the earnings during the first half of the year were because of the divestment gains from its energy and education business. The company attributed the double earnings of P41.7 billion from its business units. It can be noted that during this period, AC Education, Inc. merged with iPeople, Inc. The divestment gains we are talking about here came from the AC Education and AC Energy as well. AC Energy promised to transfer its asset to Power Partners Ltd. Co., its partner in 552-megawatt GNPower Kauswagan’s coal-fired power. This deal is expected to be implemented in parts in compliance with PCC’s conditions and approval.

Solid Core Holdings

Apart from the education and energy business units of AC, its solid core holdings in banking, real estate, and telecommunications contributed to the result of its first-half performance. The outcome from these core holdings was enhanced by the value realization initiatives of AC Energy. The business units of AC include Ayala Land, Inc. (ALI), Bank of the Philippine Island (BPI), Manila Water Co., Inc., Globe Telecom, Inc., AC Industrial Technology Holdings, Inc., and AC Energy. Some of these units’ earnings jump and some fell.

Breakdown Of AC’s Business Units’ Profits

For Ayala Land, the net income grew by 12% to P15.2 billion following the 4% hike in its revenues to P83.2 billion. BPI’s net income went up by 25% to P13.7 billion while the revenues jumped by 23% to P45.9 billion due to margin expansion and growth in fee income. Mani Water’s earnings went down by 18% to P2.9 billion because of the supply struggles during the quarter wherein the shortage led to higher operating expenses and lower volume billed to customers. Globe had an increase in net income by 21% to P12 billion while its service revenues grew to P72.9 billion by 13%. AC Industrial incurred a net loss of P510 million because of the global slowdown in the industry where it’s in. Lastly, AC Energy’s earnings stood at P23.3 billion.

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