2025-04-29 09:16Financial Performance - Revenue for 2024 was $10,057.2 million, a decrease of 4.3% from $10,510.7 million in 2023[11] - Net profit for the year increased to $1,603.3 million, up 19.5% from $1,341.4 million in 2023[11] - Profit attributable to equity holders of the parent rose to $600.3 million, representing a 19.7% increase from $501.2 million in 2023[11] - Operating contribution from core operations was $776.5 million, an increase of 10.7% compared to $701.5 million in 2023[11] - Basic earnings per share increased to 14.15 cents, up from 11.82 cents in 2023, reflecting a growth of 19.7%[11] - The total revenue for the group decreased by 4% to $10.1 billion, primarily due to a decline in PLP's revenue, offset by increased water service charges from Maynilad and traffic volume from MPTC[41] - Regular profit increased by 11% to $672.5 million, driven by profit contributions from Indofood, MPIC, and PLDT[41] Assets and Liabilities - The total assets reached $673.95 million, an increase of 4.9% from $644.87 million in 2023[11] - Total assets increased to $28,677.9 million in 2024, up from $27,357.5 million in 2023, representing a growth of 4.8%[12] - Net debt rose to $9,098.5 million in 2024, compared to $8,450.3 million in 2023, indicating an increase of 7.7%[12] - The company's equity attributable to owners increased by 6% to $3,926.2 million in 2024 from $3,688.0 million in 2023[15] - The company's total debt as of December 31, 2024, is approximately USD 1.5 billion, with a net debt of about USD 1.3 billion and an average maturity of 3.5 years[47] Profitability Metrics - The gross profit margin improved to 36.34%, up from 32.11% in 2023[11] - The return on average equity was 17.66%, compared to 17.29% in 2023, indicating a slight improvement[11] - The adjusted net asset value per share rose to HKD 7.30 in 2024, compared to HKD 6.98 in 2023, marking a growth of 4.6%[12] - The average exchange rate for the Indonesian Rupiah against the USD decreased by 4.2% year-on-year, impacting the company's financial results[43] Dividends - The dividend payout ratio was 20.65%, consistent with the previous year, maintaining shareholder returns[11] - The dividend payout for the year is projected to reach $138.9 million, reflecting a commitment to returning value to shareholders[24] - The final dividend announced by the company is HKD 0.135 per share (USD 0.0173), an increase of 11% from HKD 0.230 per share (USD 0.0295) in 2023 to HKD 0.255 per share (USD 0.0327) in 2024[45] - The company plans to continue its progressive dividend policy to provide higher cash returns to shareholders[51] Market Outlook and Strategy - The company anticipates continued positive growth in its key markets, with Indonesia and the Philippines expected to exceed 5% growth in 2024[27] - The company plans to enhance productivity and strategically invest in new projects to capitalize on emerging opportunities[27] - The company's core business markets are expected to grow by over 5% in 2024, driven by investments in consumer goods, infrastructure, telecommunications, and natural resources[33] - The company's management is optimistic about sustainable profit growth despite potential challenges, with strategic planning in place to ensure continued profitability[34] Operational Highlights - Indofood contributed $333.3 million to the group's profit in 2024, reflecting a double-digit growth, while PLDT's profit contribution was $148.5 million, up from $143.2 million in 2023[38] - PLDT's fintech investment, Maya, recorded profitability in the last month of the year, significantly increasing its banking customer base and loan disbursements[33] - The company plans to build a 670 MW hydrogen-fueled combined cycle gas turbine facility, expected to start operations in January 2029, which will be the largest of its kind in Singapore[34] - Philex Mining's Silangan project is set to commence production by the end of Q1 2026, while the Padcal mine's operational period has been extended to 2028[34] Capital Expenditures - Capital expenditures reached $1,358.4 million in 2024, an increase of 12.9% from $1,203.5 million in 2023[12] - Capital expenditures for 2024 are projected to decrease by 8% to 78.2 billion pesos ($1.4 billion), with a target to achieve positive free cash flow[88] - Capital expenditures for Meralco rose by 52% to PHP 44.7 billion (USD 779 million), reflecting network upgrades and new solar power plant developments[128] - Capital expenditures for MPTC increased by 19% to PHP 18.2 billion (USD 31.65 million), primarily for the construction of C5 South Link and Candaba[131] Corporate Governance - The board includes independent non-executive directors with diverse backgrounds in finance and management, enhancing corporate governance[192][193][194][196] - The governance structure is designed to ensure accountability and transparency, which is crucial for investor confidence[192] - The board's experience in mergers and acquisitions can facilitate future growth opportunities for the company[194][200] - The company emphasizes the importance of financial oversight and strategic planning through its experienced board members[195] Challenges and Risks - The company recorded a net foreign exchange and derivative loss of $40.2 million in 2024, compared to a gain of $19.5 million in 2023[43] - PLP's profit contribution decreased by 18% to USD 9.69 million in 2024, reflecting a decline in core profit[144] - PLP's total revenue decreased by 27% to SGD 2 billion (USD 1.5 billion) due to a drop in average selling prices[149] - The exploration activities for Service Contracts 72 and 75 have been largely suspended since 2014 and 2015, respectively, due to force majeure declarations by the Philippine Department of Energy[176]