GT Capital expects to earn P6.5B this year

MANILA, Philippines - GT Capital, the flaghip investment vehicle of taipan George Ty,  is seen to post net earnings of P6.5 billion in 2012 or nearly double the P3.4 billion profit recorded the previous year on the back of a robust economy and strong consumer spending, sources said.

The same sources said the firm is likely to register core profit of P5.2 billion last year.

In the nine months ending September last year, GT Capital doubled its net income to P5.3 billion mainly due to one time gains booked by property unit Federal Land Inc.

Excluding non-recurring items, GT Capital’s nine month core profit increased by 51 percent to P3.9 billion.

GT Capital expects to sustain its positive trajectory this year on higher contributions from its banking and power businesses.

First Metro Investment Corp. said that while unit Metropolitan Bank and Trust Company will continue to account for the majority of GT Cap’s earnings at 45 percent, Toyota Motor Philippines and GLobal Business Power Corp.  will chip in a combined 43 percent of 2013 earnings.

Federal Land and Axa Life Insurance Corp. (Axa) , on the other hand, are seen to contribute nine percent and three percent to total earnings, respectively.

The power unit is expected to chalk up a net income of P2.9 billion, up 25 percent from the year earlier figure mainly due to the full year run of the 164 megawatt Panay Energy and the 246MW CEbu Energy Development.

GBPC has a 40 percent market share of the country’s largest island grid, Visayas. An expansion of 82MW for CEDC and 150MW for Panay Energy Development Corp. will further increase market share to slightly half of the Visayan grid’s 1,500MW installed capacity.

TMP and GBPC’s market shares have grown from 33  percent  to 36 percent and from 33 percent to 40 percent, respectively.