Ayala Corporation beats target net income ahead of plan

Chrisee Dela Paz

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Ayala Corporation beats target net income ahead of plan
Real estate, telecommunications, and power generation businesses performed well in 2015, says Fernando Zobel de Ayala

MANILA, Philippines – Ayala Corporation, the country’s oldest conglomerate, saw its net income grow by 20% in 2015, breaching its target a year ahead.

The increase was anchored on strong performance in its real estate, telecommunications, and power generation businesses.

Ayala told the Philippine Stock Exchange (PSE) on Thursday, March 10, that its net income expanded 20% to P22.3 billion ($478.26 million) in 2015, 20% higher than its 2014 performance.

The conglomerate had earlier targeted to post a net income of P20 billion ($428.72 million) and a mid-teen return on equity by 2016.

It also reported to the local bourse that it has allotted P174 billion ($3.73 million) for capital spending this year, mainly to expand its real estate and telecommunications units.

“We achieved a number of milestones as a group in the past year, with most of our major businesses continuing to perform well,” Ayala president and COO Fernando Zobel de Ayala said in a statement.

“In 2015, we strengthened our growing portfolio of power and infrastructure investments, with various projects coming to fruition. In addition, we increased our investments in social infrastructure, as we entered the healthcare space and deepened our presence in education,” Zobel added.

If it were not for stake sale…

Excluding capital gains from the partial sale of AC Energy’s stake in North Luzon Renewable Energy Corporation and the divestment of Stream Global Services, Ayala’s net income should have grown by 24% percent year-on-year. 

Equity earnings contribution from Ayala Corporation’s business units – including Ayala Land, Incorporated; Globe Telecom, Incorporated; Bank of the Philippine Islands; and Manila Water Company, Incorporated – reached P28 billion ($600.20 million), higher by 13% compared to 2014.

Ayala’s president and COO said power and infrastructure investments contributed to the conglomerate’s 2015 financial success.

“In particular, in power, we currently have about 600 megawatts of attributable capacity across conventional and renewable platforms as our assets came online and reached more efficient operating levels,” Zobel said.

“In transport infrastructure, we opened the Muntinlupa-Cavite Expressway, launched the Beep ticketing system, and took over the operations and management of LRT1,” he added.

Ayala Corporation ended 2015 with gross debt of P93.6 billion ($2.01 billion), 7% lower than in 2014, and cash of P47.4 billion ($1.02 billion). – Rappler.com

$1 = P46.65

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