Conglomerates Alliance Global Group Inc., Lopez Holdings Corp., GT Capital Corp. and Cosco Capital Inc. reported strong profit growth this year as their diverse businesses allowed them to navigate the bumpy ride towards economic recovery.
AGI, the holding company of businessman Andrew Tan, said in a disclosure to the stock exchange net income climbed 73 percent in the third quarter to P3.5 billion from the same period last year, as consolidated revenues rose 28 percent to P38.9 billion.
The company attributed the strong third quarter performance to continued recovery of core subsidiaries and cost management efforts.
“AGI delivered these strong results even amid the health crisis while tapping on its internal strengths—its differentiated products and services, extensive distribution network, diversified operations, massive landbank and healthy balance sheet,” AGI chief executive Kevin Tan said.
GT Capital of the Ty family reported a 307-percent increase in third-quarter net income to P2 billion from P490 million posted in the same period last year on higher revenues.
Third-quarter revenues jumped 21 percent to P39.84 billion from P32.97 billion a year earlier, on higher sales from automotive and real estate businesses and equity in net income from associates and joint ventures.
“The more recent decline in reported Covid-19 cases, the lifting of mobility restrictions and the increased number of fully-vaccinated individuals in key cities have resulted in a noticeable resurgence of consumer confidence. This gradual return to pre-pandemic conditions will result in positive momentum for the last quarter of the year, paving the way for an even more robust recovery in the coming year,” GT Capital president Carmelo Maria Luza Bautista said.
Cosco Capital of businessman Lucio Co booked a third-quarter profit of P1.38 billion, up 2.3 percent from P1.34 billion a year ago despite the flat growth in revenues at P42 billion.
Lopez Holdings of the Lopez family recorded a third-quarter net income of P1.2 billion, a reversal of the P766-million net loss posted in the same period last year.
This was due to the recovery in the business units under investee First Philippine Holdings Corp., coupled with the smaller net loss of investee ABS-CBN Corp.
Meanwhile, First Gen Corp., the power arm of the Lopez Group, announced an 11-percent improvement in recurring net income attributable to equity holders to P10.3 billion (212 million) in the first nine months, up from P9.6 billion ($190 million) in the same period in 2020.
First Gen derives its income from the operations of 3,495 megawatts of clean, low-carbon and renewable portfolio.
“Our clean and renewable energy platforms generated higher revenues for the nine months of 2021 as power demand recovered to pre-pandemic levels. Revenue growth also reflected the higher fuel commodity prices experienced all over the world,” First Gen president and chief operating officer Francis Giles Puno said in a statement.
The company benefited from higher electricity sales, led by the 97-megawatt Avion natural gas-fired power plant, supplemented by lower interest expenses and taxes due to the recently enacted CREATE law.
Puno said the company’s gas-fired plants were increasingly running on liquid fuel because of gas supply restrictions from the Malampaya field.
“We expect to address this volatility and uncertainty once our LNG import terminal operates in the last quarter of next year,” he said. With Alena Mae S. Flores
