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Ayala Corp. earns P12.8B in 2013; earmarks P190B for 2014 expansion

Ayala Corporation expects to continue posting double digit growth this year after it reported a 22 percent improvement in its consolidated net income to P12.8 billion in 2013 on the back of sustained robust performance of its real estate and banking businesses.

In a disclosure to the Philippine Stock Exchange, Ayala said that, without the impact of the accelerated depreciation from its telecom unit’s network transformation initiative, core net income jumped even higher to P14.8 billion, a 28 percent hike from a year ago.

The conglomerate said its strong earnings performance was driven by the 23 percent gain in equity earnings to P17.6 billion last year.

These were primarily from its banking and property units, boosted by significant improvements in equity earnings of its electronics and business process outsourcing businesses.

“We are encouraged by the strong performance across our business units as they reap the benefits of the aggressive growth strategies they started a few years back,” said Ayala president Fernando Zobel de Ayala.

He added that, “in turn, we have also been able to optimize earnings and value at the parent level as we continued to rebalance our portfolio and adjusted our ownership, particularly in our banking and water units, over the past year.”

Zobel noted that, “as we ramp up our power business and as the economic environment remains sound, we are optimistic we can sustain double-digit earnings growth through 2014.”

The Ayala Group earmarked nearly P190 billion for capital expenditures this year to continue its investment programs in its real estate, banking, telecommunications, and water businesses as well as to ramp up its new businesses.

Last year, the Ayala Group collectively spent roughly P120 billion in capital expenditures to fund the various growth initiatives of its real estate, telecommunications and water units.

Part of the amount was also used to bankroll the parent company’s own strategic initiatives, including the acquisition of additional stakes in the Bank of the Philippine Islands (BPI) and Manila Water Company (MWC) as well as its new investments in the power and transport infrastructure spaces.

Earlier this year, Ayala participated in BPI’s stock rights offering. It also closed the acquisition of an approximately 17 percent ownership stake in GNPower Mariveles Coal Plant Ltd. Co.