Lopez Holdings

 

FPHC Achieves Net Income of P3.3 Billion  First Philippine Holdings Corporation (First Holdings) achieved a net income of P3.3 billion for 2004.

With Manila Electric Company (Meralco) as a major associate, First Holdings captured its share in the Meralco’s provision for probable losses in the event of a final and executory adverse decision on the unbundling rate case currently pending before the Supreme Court. This share amounted to P1.2 billion. Without this, First Holdings’ net income would have been P4.5 billion, an 18% increase over last year’s net income.

First Gen Corporation (formerly First Generation Holdings Corporation) and Meralco were First Holdings’ major operating companies in 2004. Its tollways company, the Manila North Tollways Corporation, started commercial operations only on February 10, 2005.

First Gen accounted for 93% of the P39.89 billion total revenues of First Holdings. The three major operating companies of First Gen are First Gas Power Corporation (FGPC), the project company of the 1000 MW Santa Rita gas-fired plant in Batangas City; FGP Corp. (FGP), the project company of the adjoining 500 MW San Lorenzo plant; and Bauang Private Power Corporation (BPPC), the operator of the 225 MW diesel-fired power plant in La Union.

First Gen’s consolidated revenues increased slightly to P37.04 billion, as FGPC posted a 5.5% increase in revenue. This was, however, tempered by lower revenues of FGP.

First Gens net income showed a 6.91% decline to P4.96 billion. The previous years results, however, included a one-time gain of P318 million from the sale of Panay Power Corporation, a 72 MW diesel plant in Iloilo City. Without this one-time gain, First Gens net income would have approximated that of 2003.

First Gen won the bidding last June 2004 for the 1.6 MW Agusan mini-hydro plant. This was part of the Power Sector Assets and Liabilities Management Corporation privatization program. The company took over the plant in March 2005.

Regarding Meralco, sales grew by 3.5% to 24.660 Gwh in 2004, resulting from 4.8% sales growth to the commercial sector, 3.1% to industrial sector, and only 2.5% to residential customers. Meralco had 4.2 million customers in 2004, 1.6 million of them classified as lifeline customers.

The company showed a net loss of P2.6 billion due to the aforementioned provisions amounting to P6.68 billion, net of the tax effect of P3.14 billion.

Meralco completed a refinancing program in 2004, involving 0 million and P3.2 billion, lengthening its debt maturity profile and consequently alleviating its liquidity problems.

Concerning MNTC, the run-up to the February 10, 2005 commercial operations required prior management and coordination of three critical programs, namely, the completion of the physical modernization of the North Luzon Expressway (NLE), the training for and take-over of operations and maintenance of the NLE, and the public communications explaining that the benefits outweigh the high toll rate increases.

The NLE project had a construction budget of 1 million. It was completed five months ahead of the July 2005 deadline agreed with the government. Its state-of-the art facilities and services make the NLE the first of its kind in the Philippines.

On other investments: Rockwell Land Corporation experienced brisk sales for Manansala and Joya, having been 98% and 52 sold, respectively, by yearend. Net income at P245 million was an 83% increase over the previous year. First Philippine Industrial Park closed a major transaction involving a 20-hectare lot sale. This resulted in a revenue increase of 54% to P437million and a net income of P74 million, more than double the P34 million for the previous year. First Sumiden Circuits, Inc. got the Philippine Quality Award Recognition (Level II) for proficiency in quality management.

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Lopez Holdings Corporation 
16/F North Tower, Rockwell Business Center Sheridan, Sheridan St. corner United St., 1550 Bgy. Highway Hills, Mandaluyong City, Philippines

  • Trunkline: (632) 8878 0000
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