Conglomerate Ayala Corp. said Monday net income climbed 7 percent in the first half to P16.1 billion from a year ago on the solid performance of the real estate, telecommunications, and power businesses.
Ayala Corp. said in a disclosure to the stock exchange equity earnings reached P19.5 billion in January to June, up 12 percent from a year ago, with strong contributions from Ayala Land Inc. and Globe Telecom Inc., which climbed 18 percent and 25 percent, respectively.
Power generation arm AC Energy’s equity earnings contribution more than doubled in the first semester from the same period last year.
“These results validate our long-term strategy to achieve a more resilient portfolio by allocating capital to new businesses from which we can derive fresh sources of growth while continuing to expand our core businesses,” Ayala Corp. president and chief operating officer Fernando Zobel de Ayala said.
“With the steady-state operations of its platforms and consistent value realization initiatives, we are happy to see AC Energy starting to provide the necessary balance to some of our more cyclical and longer gestation businesses,” Zobel de Ayala said.
The conglomerate said that in the second quarter, it recorded a net income of P8.4 billion, up 3 percent year-on-year, driven by Ayala Land and AC Energy, which posted transaction gains from value realization initiatives.
The lower fee-based income and higher operating expenses recorded by the Bank of the Philippine Islands tempered the group’s net earnings during the period.
Ayala Land’s net income grew 18 percent year-on-year to P13.5 billion, driven by its residential segment and supported by the commercial leasing business.
Bank of the Philippine Islands booked a net income of P11.03 billion in the six-month period, down 5.7 percent from a year earlier, as lower non-interest income and higher operating expenses offset growth in the bank’s core business.
Globe Telecom posted a net income of P10.1 billion in the first semester, on the back of continued strong performance of data-related products combined with stable costs and expenses.
AC Energy’s net earnings expanded more than twofold to P2.1 billion in the first semester, bolstered by the solid performance across its wind, geothermal and thermal platforms. Minus the services income, AC Energy’s net profit jumped 59 percent in the first half.
AC Energy announced in May its participation in the Australian renewables market through a joint venture with international renewable energy developer UPC Renewables.
AC Energy plans to invest $30 million for a 50-percent ownership in UPC’s Australian business. It is also providing a $200-million facility to fund the project equity.
UPC Renewables Australia is developing the 1,000-MW Robbins Island and Jims Plain projects in North West Tasmania and the 600-MW New England Solar Farm located near Uralla in New South Wales.