Ayala Land H1 nosedives
Ayala Land Inc. said profit for the first half of the year reached P4.5 billion, down 70 percent from last year’s P15 billion. Revenues reached P41.2 billion, down 50 percent from last year’s P82.4 billion.
Property development revenues reached P24.9 billion, down 58 percent mainly due to lower project bookings and suspended construction activity. Residential revenues meanwhile stood at P20.5 billion, down 54 percent, while office for sale revenues dropped hit P1.4 billion, down 86 percent.
“Revenues from the sale of commercial and industrial lots decelerated by 31 percent to P3.0 billion, while sales reservations registered at P38.3 billion — 47 percent lower than last year given limited selling activities during the quarantine,” the company said.
“COVID-19 severely impacted our performance in the first half of the year. Although we are seeing some positive signs of recovery in certain product lines, we expect the remainder of the year to be extremely challenging. Our property sales started to gain traction as the economy reopened but the performance of our malls and hotels continue to be seriously affected under the current environment. We are constantly making adjustments in our operations to position the company for renewed growth when the economy recovers,” said Bernard Vincent Dy, Ayala Land president.
Ayala Land is set to list Thursday, August 13, 2020, its real estate investment trust unit AREIT Inc., the first to test the water for the country’s REIT market structure.
RLC topline marginally up
Robinsons Land Corp., (RLC) of the Gokongwei Group of Companies said profit for the period hit P3.7 billion, down 8 percent from P4 billion last year.
Revenues stood at P15.4 billion, up 3 percent from P15 billion last year, with EBITDA at P8.2 billion, down 1 percent.
RLC said the full impact of the COVID-19 pandemic was felt during the 2nd quarter of the year, substantially hitting its businesses.
“The Investment portfolio which accounts for 49 percent of consolidated revenue was down by 25 percent to P7.5 billion during the first half of 2020 versus P10.0 billion in the same period last year. However, the development portfolio managed to surge by 59 percent to P7.9 billion in the first half of the year with the new Residential accounting treatment.
Without the adjustment, residential revenue is down by 51 percent in the said period,” it said.
RLC closed the period with P18.1 billion in cash, and net gearing ratio further at 0.33x.
Total assets stood at P209.1 billion with shareholders’ equity at P101.4 billion.
“Even with the full impact of the quarantine in the second quarter, all our business units managed to be EBITDA (earnings before interest, taxes, depreciation and amortization) positive. Moving forward, the improving trend gives us optimism that the economy is on its way to recovery. We continue to seek opportunities and innovative new ways of doing business to deliver long-term sustainable value to all our stakeholders,” said Frederick Go, RLC president.
RLC’s Malls Division revenues in the first six months posted a decline of 42 percent to P3.8 billion while EBITDA was down by 37 percent to P2.7 billion.
Semirara nets P2B
Semirara Mining and Power Corp. (SMPC) suffered a 61 percent slump in consolidated net income for the first half of the year to P2.2 billion from 2019’s P5.7 billion.
This was due to containment measures related to the new coronavirus disease 2019 that dragged down coal demand and average selling price, as well as electricity sales and average selling price from March until June.
“We saw historic dips in prices, particularly in April when Global NewCastle coal prices reached $49.30 per metric ton, the sharpest drop in six years… The decrease in spot market prices in April was also staggering. From P6.71 per kWh (kWh) last year, it plunged to P1.40 per kWh,” said Cristina Gotianun, SMPC president and chief operating officer.
Earnings contribution from the coal business fell 59 percent to P1.8 billion due to weak coal sales and average selling price. Coal sales contracted 27 percent from 7.9 million metric tons (MT) to 5.7 million MT for the period while average selling price per MT fell 21 percent from P2,229 to P1,765.
Sem-Calaca Power Corp. contributed P726 million, a turnaround from P242 million losses in the same period last year while Southwest Luzon Power Generation Corp. booked P236 million in losses compared to the previous P1.6 billion in earnings.
NAC sales drop as ore falls
Nickel Asia Corp. (NAC) booked a 42-percent drop in attributable net income for the first half of the year as it only reached P401.4 million compared to previous year’s P694.2 million.
NAC said the lockdowns in April and May caused the drop in ore shipments at the Taganito, Cagdianao and Hinatuan mines.
Revenues fell by 11 percent to P6.64 billion in the period from P7.51 billion in 2019. NAC sold an aggregate 7.29 million wet metric tons (WMT) of nickel ore as against 9.07 million WMT in the previous year. Limonite ore deliveries to the two processing plants, which accounted for 55 percent of total shipment volumes, were slightly lower at 4.01 million WMT compared with 4.41 million WMT last year.
Ore export shipments fell 30 percent to 3.28 million WMT from 4.67 million WMT last year.
NAC realized an average of $5.69 per pound of payable nickel on its shipments of ore to the two HPAL plants, slightly higher compared to an average price of $5.56 per pound of payable nickel sold in 2019.
For export sales, NAC also realized a higher average price of $25.44 per WMT compared to $20.97 per WMT in the prior year mainly due to the Indonesian ore export ban.
On a combined basis, the average price received for sales of both ore exports and ore deliveries to the two plants in 2020 was $15.68 per WMT compared with $14.39 in 2019.
FDC profit up 19% in H1
Filinvest Development Corp. (FDC) said profit for the first half of the year reached P9.1 billion, up 19 percent from P7.64 billion.
Profit less minority interest hit P7.2 billion, up 24 percent from P5.8 billion.
Revenues reached P40.6 billion, down 4 percent from P42.29 billion.
EastWest Bank posted profit contribution to P4.3 billion, up 60 percent from last year.
Filinvest Land Inc. and Filinvest Alabang Inc. (FAI) posted profit of P4.6 billion, up 8 percent from last year’s P4.26 billion boosted by the income recognition amounting to P2.9 billion of the transaction between FAI and Mitsubishi Corp. in October 2019 for the joint development of 17,000 square meters of prime land.
Sales revenues of lots, condominium and residential units hit P4.9 billion, up 55 percent.
Rental revenues hit P3.5 billion, down 3 percent.