Benpres bounces back with P527-M net profit in Q3

The Lopez-owned Benpres Holdings Corp. (BPC) bounced back into profitability in the third quarter this year, turning in a P527-million net income compared to a P229-million loss a year ago, but the continued higher interest payments and weak performance of major subsidiaries still weighed down on its nine-month earnings.

A financial statement submitted to the Securities and Exchange Commission (SEC) showed that from January to September 2001, BPC posted a net loss of P182 million, slightly higher than the P174-million loss during the same period last year.

Not even a 30-percent decrease in equity in net losses of investees, particularly with the strong performance of energy arm First Philippine Holdings Corp., could lift BPC’s bottomline as the operations of its telecommunications and water units (Bayan Telecommunications Inc. and Maynilad Water Services Inc.) continue to negatively impact on the company.

FPHC posted a one-time gain of P1 billion as it completed the sale of its 7.75-percent stake in First Generation Holdings Corp. to AIDEC FG Power Corp. for $40 million last Aug. 3, 2001. BPC owns over a 47-percent interest in FPHC.

But BayanTel (47.32-percent owned) and MWSI (59-percent owned) continue to drag down BPC’s financial health, with the telecoms unit working on the restructuring of about $477 million in debts.

Meanwhile, the unstable forex rate proved detrimental to the operations of MWSI, which is still seeking an automatic currency exchange rate adjustment (CERA) in its tariffs to recover previous losses due to currency fluctuations and to ensure financing of the water project concession with the Metro Manila Waterworks and Sewerage System (MWSS).

The flagship broadcasting network ABS-CBN Broadcasting Corp., the largest contributor to BPC’s revenue pie, was not spared by higher depreciation and interest charges as its net income slid 19 percent year-on-year to P1.3 billion.