Lopez Holdings


FPHC 24% increase in recurring earnings
First Philippine Holdings Corporation's (First Holdings) recurring income for the nine-months ending September 30, 2007 was higher byP713 million or 24% compared to 2006. The strong performance was mainly due to its power generation business.

Due to the extraordinary gains in 2006 coming primarily from the initial public offering of First Gen Corporation (First Gen) and the sale of Sirf shares , the First Holdings September 2007 consolidated net income of 3.7 Php3.7 billion was lower than last year's PhP5.3 billion by 30%..

First Holdings has undertaken two capital-raising activities during the year to strengthen its position in its core investments. Elpidio L. Ibanez, company President and COO, stated that, "We are pursuing growth in all our core investments.".

Last October 25, 2007, First Holdings signed a 0 million dual-currency Floating Rate Corporate Notes (FRCN) facility agreement with BDO Capital and Investment Corporation (as the Lead Arranger and Sole Bookrunner) as well as with other financial institutions. Subsequently, last November 9. 2007, the Company filed with the Securities and Exchange Commission its application for an increase in capital stock from Pesos Twelve Billion One Hundred Million (P12,100,000,000.00) to Pesos Thirty-Two Billion One Hundred Million (P32,100,000,000.00) by the issuance of two hundred million preferred shares with a par value of P100 per share. This was previously approved during the special stockholders' meeting held last 10 October 2007..

First Holdings' power generation subsidiary, First Gen, again reported higher profits for the first nine months of 2007. Its net income of US0 million is higher by 50% compared to last year primarily due to the income contribution of its Pantabangan-Masiway hydroelectric power plant. Furthermore, First Gen recently entered into a joint venture (JV) with Reykjavik Energy Invest (REI), an Iceland-based company, to explore geothermal opportunities within or outside the Philippines. It is also looking into the Philippine government's remaining stake in PNOC-EDC..

Manila Electric Company's (Meralco), First Holdings' power distribution affiliate, net income for the period was PhP2.8 billion and is lower by 22% compared to last year's PhP3..6 billion after the reversal of provisions. Last year's figure included a provision for probable losses related to a pending case questioning a rate unbundling approved by the Energy Regulatory Commission and implemented by the company in June 2003. The case was subsequently decided by the Supreme Court in favor of Meralco..

First Philippine Infrastructure Development Corporation, First Holdings' tollways company, registered a net income of PhP981million for the period ended September 30, 2007. This amount was lower than last year's net income by PhP157 million or 14% mainly due to the Manila North Tollways Company's 11% reduction of toll fees effective December 2006, pursuant to the two-year toll rate resetting schedule of the company. Nevertheless, the toll rate reduction was partly countered by a healthy 5.1% increase in traffic volume for 2007..

On November 6, 2007, the Bases Conversion and Development Authority awarded the contract for the Interim Service Provider for the initial operations and maintenance of the Subic-Clark-Tarlac Expressway to the joint venture of First Holdings, Egis and Tollways Management Corporation..

First Philippine Electric Corporation (First Philec), the holding company for all the manufacturing businesses of First Holdings, entered into a joint venture agreement with SunPower Philippines Manufacturing Ltd. (SPML) on October 1, 2007. The joint venture company, named First Philec Solar Corporation (FPSC), will provide wafer slicing services for the solar energy industry. SPML will deliver silicon ingots to FPSC which in turn will slice and deliver silicon wafers to SPML to support the equivalent of approximately 660 megawatts of power per year. FPSC is expected to be operational by the second half of 2008. 

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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
  • Fax: (632) 8878 0000 ext 2009
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