Lopez Holdings

investor relations banner 2017

2016 Chairman's Message to Stockholders

Fellow shareholders:

In the year 2016, Lopez Holdings Corporation climbed higher on the steps toward sustainable growth, with major investees choosing to help build the nation in better ways.

First Gen Corporation (FGEN), consolidated under investee First Philippine Holdings Corporation (FPH), inaugurated two new natural gas-fired power plants, increasing its ability to generate power with the least possible impact to the environment. FGEN has chosen Flex-Plant technology for the San Gabriel power plant, enabling it to serve its customers’ varying power needs at all times of the day. Its Avion power plant is designed to immediately go online at peak times, when power is needed the most.

FPH is continually exploring ways to meet our country’s energy requirements in a manner that will have the least impact on, or best conserve our natural resources, as well as empower the communities that provide manpower to its endeavors.

Investee ABS-CBN Corporation quickly moved into the digital space, with offerings of digital terrestrial television (ABS-CBN TVplus), ondemand services (iWant TV, SKY Pay-perView, TVPlus Kapamilya Box Office), mobile telephony (ABS-CBN Mobile), high definition channels (via TVplus, SKY Cable and its direct-to-home satellite service, SKYDirect),
and high-speed internet (SKY Broadband). These innovations expand ABS-CBN’s reach beyond the TV screen and cater to the needs of the millennial generation that is used to multiscreen viewing, or tuning in to information and/or entertainment programs simultaneously on multiple screens.

By making content accessible across a variety of platforms, ABS-CBN is carefully laying the foundations for rich, experiential encounters with its audiences, who support its world-class TV, film, music and event offerings, as well as its home-grown artists who have become formidable brands with solid social media following.

All these initiatives take into account the current needs of our customers across various segments of society, as well as our other stakeholders. Our stakeholders include not only
the people surrounding the areas where our businesses operate, but also future generations who will need the same resources we are using to deliver much-needed services now.

In the case of power generation, we understand that renewable sources of energy tend to be intermittent because they are subject to the vagaries of the weather—sun, wind and
rainwater. Recognizing this, we have chosen natural gas for our plants because it is the most environment-friendly bridge fuel. FGEN’s natural gas-fired power plants are capable of serving baseload, mid-merit or peaking requirements of electricity consumers, with lower carbon dioxide emissions compared to power plants that use other kinds of fossil fuels.

Going forward, we renew our commitment to our people’s aspirations for a better life, a better country, and a better future. As the country stays on track to achieve inclusive growth in the medium term, our investments will continue to support developmental requirements for energy, infrastructure and property development, as well as for connectivity, communication and information, in better ways.

The country’s gross domestic product (GDP) increased by 6.8% in 2016, once again driven by capital formation which grew by 20.8%. In terms of industry, construction grew the fastest at 12.6%, followed by finance and real estate at 8.5%, trade at 7.3% and manufacturing at 7.0%. Although the industry sector grew by 8.0% in 2016, our economy remains driven by services, as industry accounted for only 33.8% of total GDP. The services sector grew by 7.5% and accounted for 57.5% of GDP.

What this tells us is that the country’s commercial sector will likely continue to drive energy demand, which has been very much the same case as in the previous 20 years. Hence, we are all the more confident of FGEN’s choice of the Flex-Plant technology for the San Gabriel. It is truly appropriate because it gives us the flexibility to serve the exact requirements of electricity users, given the nation’s development track.

At the same time, Rockwell Land Corporation, a subsidiary of FPH, is expanding its commercial space portfolio with the turnover of Rockwell Business Center Sheridan within this year, 2017. Like its predecessors, Rockwell Business Center in Ortigas and 8 Rockwell in Rockwell Center, Makati, Rockwell Business Center Sheridan will offer premium office spaces and amenities, complemented by curated retail shops to serve the needs of its clientele.

We continue to offer light industry competitive bases of operation through First Philippine Industrial Park (FPIP), also a subsidiary of FPH. FPIP locators have invariably given park management superior customer service and facilities management ratings. And with Rockwell Land’s foray into affordable housing through Stonewell, thousands of workers employed at the park will have the opportunity to experience the much-aspired Rockwell lifestyle.

With our population estimated at 103.9 million as of the end of 2016, the demand for basic necessities will further rise. Through our associated companies, we will continue
to search for better ways to deliver our commitments to customers. We will choose sustainable ways to produce power; build residences, offices and retail spaces; connect
with loved ones across our many islands and overseas; and inspire with top quality content that will bring out the best in every Filipino, young or old alike.

The board of directors, management and staff of Lopez Holdings thank you for your confidence in us.


Ambassador Manuel M. Lopez 
Chairman of the Board and Chief Executive Officer

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Lopez Holdings Corporation (formerly Benpres Holdings Corporation)
4/F Benpres Building, Exchange Road, 1605 Pasig City, Philippines

  • Trunkline: (632) 449-2345
  • Fax: (632) 634-3009