FDC profit breaches P4-B mark

MANILA, Philippines - Filinvest Development Corp. (FDC), the listed investment holding company of the Gotianun family, said its earnings jumped 10 percent to breach the P4-billion mark last year.

The higher net income was driven by all its operating units, particularly property and banking, the company said in a financial report.

Revenues, derived from real estate, banking, sugar, hotel and power generation operations, rose 2.13 percent to P29.64 billion from P24.13 billion a year ago. Expenses rose at a faster pace, increasing by a third to P12 billion last year, FDC said.

FDC said bulk of revenues came from the property business, particularly shopping mall rentals and sale of residential units and club shares.

Real estate revenues through Filinvest Land Inc. climbed nearly a quarter to P15.02 billion from P12.18 billion in the previous year.

The banking business, through EastWest Banking Corp., jacked up its revenues more than 25 percent to P11.44 billion from P9.11 billion, backed by a 15-percent increase in interest income.

Pacific Sugar Holdings contributed P2.46 billion in revenues, up 8.29 percent from a year ago.

The hotel business, through Crimson Resort and Spa at Seascapes Resort Town in Cebu, also recorded better performance. Its revenues rose to P706 million from P555 million in 2011.

FDC said its power generation unit FDC Utilities Inc. has yet to contribute significantly to revenues. FDC Utilities is pursuing clean coal projects mostly in Mindanao, with a total of 395 megawatts of generating capacity expected to be onstream by 2017.

Late last week, FDC said its overseas unit will facilitate the issuance of as much as $300 million worth of bonds or corporate notes.

Target date for the bond sale is within the second quarter, subject to the approval of concerned government agencies.

FDC is also joining the bidding for the P17.5-billion public-private partnership project to expand and operate the Mactan-Cebu International Airport.