Quick takes from around the market
Philippine Airlines [PAL 5.80 0.68%] [link] books first “positive” start to a year since 2016. PAL said that it had P4.2 billion of net income in H1, on P58.1 billion in revenues. It noted a 258% growth in passenger revenues y/y, and a 31% growth in cargo revenues.
MB: PAL basically has one year left on the relief of its renegotiated plane leases, which allowed PAL to only pay according to its fleet usage. In July of next year, that flips back to a straight lease, where PAL pays for its contractual lease obligations on all of its planes, whether it’s using them or not. These next 12 months are crucial to PAL in terms of being able to reinvent itself from being a complete money-loser, to something that can make a reliable profit in the changed travel landscape. PAL’s nostalgic messaging about rebuilding its network “for Filipinos” doesn’t make me very hopeful that it has learned lasting lessons.
Aboitiz Power [AP 31.00 4.32%] [link] gets funding to conduct a feasibility study on a 3-gigawatt wind installation. The announcement was made in coordination with the US Secretary of State, as part of a push to mitigate climate change impacts on vulnerable countries like ours.
MB: Whether this is vaporware or something that will directly benefit AP shareholders in the medium- or long-term is not even close to being known yet. Political announcements are always big on flash, features, and benefits, but there’s a lot of work that needs to happen between now and when AP can actually put shovels into the ground.
Ayala Land [ALI 25.90 0.38%] [link] Q2 profit rose 51% y/y, up 55% q/q, to P4.9 billion, driven by “increased economic activity”, but that “we will continue to see tempered demand for residential, until we see some of these macro issues and global uncertainties resolved”. The macro issues that ALI is talking about here are inflation and supply-chain issues. Like other retail leasing companies, ALI noted a huge uptick in mall revenue.
MB: Still, shareholders are probably still a little dumbstruck by ALI’s sharp price decline of over 33% since March. The current price is actually 1.5% lower than its COVID Crash closing price of P26.30/share.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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