Lopez holding firm reports lower income

MANILA, Philippines - The holding firms of the Lopez family recorded hefty income cuts in the first half with the absence of a non-recurring asset sale.

In a regulatory filing, First Philippine Holdings Corp. (FPHC) said net income sank 69 percent to P4.8 billion from P15.3 billion a year ago “primarily due to the absence this year of the gains on sale of investment in equity securities.”

Net income attributable to equity holders of the parent firm plunged to P1.9 billion from P10.4 billion last year.

Last year, FPHC booked a one-time gain of P6.1 billion from the sale of a portion of its investment in power distribution giant Manila Electric Co. (Meralco).

For the first half, FPHC said consolidated revenues hit P45.3 billion, 10 percent lower from P50.5 billion a year ago, primarily driven by the nine-percent decline in electricity revenues to P40.3 billion from P44.3 billion.

“This was  further reduced by the lower sale of electricity by FG Hydro due to the lower ancillary and electricity sales volume,” FPHC said.

FPHC has a current generating capacity of 2,800 megawatts (MW) through geothermal firm Energy Development Corp. and renewable energy firm First Gen Corp. But only 1,500 MW is attributable to FPHC.

Lopez Holdings Corp., for its part, also posted significantly lower earnings in the first six months.

Its net income attributable to equity holders of the parent firm declined to P1.42 billion from P5.54 billion.

“This was primarily due to the absence of one-off gains,” the company said.

In the first half of 2012, Lopez Holdings pocketed P3.39 billion as it sold its 2.66-percent stake in Meralco to Pangilinan-led Beacon Electric Asset Holdings Inc.

Consolidated revenues fell 10 percent to P45.28 billion from P50.45 billion.

“This resulted from the nine-percent decrease in the sale of electricity and the 79-percent drop in sale of merchandise,” Lopez Holdings said.

To date, Lopez Holdings is into media (ABS-CBN), cable television (SkyCable Corp.), telecommunications (Bayan Telecommunications Inc.), and power generation and distribution (FPHC and First Gen Corp.).

Formerly Benpres Holdings Corp., the company was created in 1993 as the holding company for the Lopez family’s investments in major development sectors. It has since sold its interest in banking, toll roads, information technology, property development and health care delivery.