Lopez Holdings 1H attributable net income at P815 million
Lopez Holdings Corporation (PSE: LPZ) posted P815 million in net income attributable to equity holders of the Parent for the first six months of 2011. This is 93% lower than the P11.376 billion net income attributable to equity holders of the Parent reported in the first six months of 2010. LPZ booked P127 million equity in the net loss of associates, following the P284 attributable net loss of associate First Philippine Holdings Corporation (PSE: FPH) during the period. The equity in net earnings of associates amounting to P10.641 billion in 1H2010 included LPZ’s share in the gain on sale of Meralco shares by FPH.
Unaudited consolidated revenues decreased by 18% year-on-year to P13.884 billion from P16.839 billion, on account of lower first half results for ABS-CBN Corporation (PSE: ABS), absent election-related advertising in 1H2010. Without election-related revenues of P3.1 billion in 1H2010, ABS consolidated revenues would have inched up 1% year-on-year (YoY). The attributable net income of ABS for 1H2011 was 26% lower YoY at P1.677 billion, inclusive of a P674 million gain on sale of SkyCable Philippine Depositary Receipts.
FPH recognized an impairment loss by its subsidiary, First Gen Corporation (PSE: FGEN), on the Northern Negros Geothermal Plant (NNGP) owned by Energy Development Corporation (PSE: EDC). EDC made a final provision for impairment, resulting from decommissioning the 49 megawatt NNGP. The write-down led to EDC’s loss contribution to FGEN in the first half of 2011.
“ABS-CBN is still targeting to equal its 2010 performance. Removing the effects of the gain on sale of Sky Cable PDRs (from 1H2011) and the P3.1 billion revenues from political and advocacy ads (from 1H2010), ABS-CBN’s net income would have increased by 19%. As for our energy group, the P5 billion-impairment charge taken by EDC is a non-cash transaction hence, will not affect EDC’s ability to declare dividends,” said Lopez Holdings president Salvador G. Tirona.
