Ayala Corp., one of the country’s largest listed conglomerates, said Tuesday its nine-month net income surged 35 percent year-on-year to P32.3 billion, buoyed by strong results from its banking, property development, power generation as well as gains from the sale of MCX toll road.
The sale of MCX toll road resulted in a one-off gain of P2.2 billion for Ayala.
Core profit in nine months, which rose 42 percent to P31 billion that matched the 2019 level, was buoyed by strong results from the Bank of the Philippine Islands, Ayala Land, and renewable energy firm ACEN.
BPI reported net earnings up 26 percent to P38.6 billion on sustained loan growth, margin expansion, and reduced provision for losses, while Ayala Land’s net income grew 38 percent to P18.4 billion on sustained gains in property development and commercial leasing businesses.
ACEN reported net income of P6.6 billion, up 59 percent due to boosted operating capacity. Its position as net power seller further boosted the one-off gains from the partial sale of the Salak and Darajat geothermal facility. These gains were partially offset by ACEN’s impairment provision for UPC Solar India.
AC Energy & Infrastructure, ACEN’s parent company, reported profit 2.1 times higher to P10.4 billion due to improved operating earnings from ACEN, pre-operating revenues from GN Power Dinginin, as well as gains related to the divestments of the Salak and Darajat plant in Indonesia and GN Power Kauswagan.
Globe Telecoms reported net income of P19.4 billion, down 27 percent due a one-time gain last year on the partial sale of Globe’s data center business. Excluding the impact of non-recurring charges, foreign exchange and mark-to-market charges, Globe’s core net income fell eight percent to P14.8 billion as revenue growth proved slower than higher operating, depreciation and interest expenses.
“Despite macroeconomic and geopolitical headwinds, our outlook remains intact as we look to end the year with profits exceeding pre-COVID levels. We continue to build on our solid nine-month results and rationalize our portfolio wherever it makes sense to do so,” Ayala president and chief executive officer Cezar Consing said.
As part of Ayala’s portfolio rationalization initiatives, it completed the divestment in July of Integrated Microelectronics’ 80 percent stake in STI Enterprises Ltd. to London-based private investment firm Rcapital; the sale of the 92.45 percent stake of AC Industrials in MT Technologies GmbH to Callista Asset Management 18 GmbH in August; and the sale of 288.9 million common shares and 436.2 million preferred shares in Manila Water for P5.7 billion while retaining a 22.5 percent economic stake.
