Benpres incurs lower loss in 2004

Benpres Holdings Corp., the investment holding firm of the Lopez family, incurred a net loss of P1.36 billion last year, a 28 percent drop from the previous year’s P1.905 billion net loss.

Benpres, however, reported a 22 percent drop in consolidated revenues to P3.905 billion from P5.006 billion due to a 46 percent decline in foreign currency differential adjustment with the reclassification of charges in water utility Maynilad Water Services Inc.

Interest and financing charges surged 63 percent, representing penalty charges due to default in the payment of outstanding debt.

Benpres said the deterioration in the currency exchange rate from P55.438: $1 in Dec. 2003 to P56.28: $1 in Dec. 2004 also resulted in an increase in the peso value dollar-denominated debt.

However, provisions for the decline in the value of investments at equity and advances went down by 80 percent, as the 2003 provisions of P1.6 billion included investments in both Maynilad and BayanTel its telecommunications arm.

Benpres said no additional provisioning was made in 2004 as the remaining recoverable value of investment in BayanTel remains at P1.67 billion.

Contracted services decreased by 75 percent, accounting for 88 percent of the P846 million contraction in general and administrative expenses.

Last year, equity in net earnings of associates also declined by 19 percent due to the decrease in the net income of First Philippine Holdings Corp. (FPHC).

Flagship ABS-CBN Broadcasting Corp., the group’s media concern, reported a 25 percent decline in net profit to P758 million from P1.008 billion.

Consolidated revenues went up seven percent to P13.57 billion.

FPHC posted a net profit of P3.31 billion last year, down 14 percent from P3.84 billion the previous year. Revenues, on the other hand, increased 3.8 percent to P38.89 billion from P38.42 billion.

FPHC booked equity in net losses of associates in the amount of P467 million, largely as a result of provisions made by associate utility, Manila Electric Co. (Meralco), for probable losses should the Supreme Court rule against an increase in electricity rates.

Benpres said its water utility firm Maynilad is continuing its discussions with the MWSS, bank creditors and shareholders to reach an agreement on the terms of restructuring of outstanding bank loans.

As for its tollways business, the Manila North Tollways Corp. (MNTC) conducted a comprehensive communications program in 2004 to gain public acceptance of the new toll rates. The North Luzon Expressway project was completed within the timetable set with Leighton Contractors (Asia) Ltd., the contractor, and five months ahead of the July 2005 deadline set under the agreement with the government.

Rockwell Land Corp., the group’s real estate unit, the Manansala and Joya condominium towers anchored the company’s strong performance in 2004.By yearend, Manansala was 98 percent sold and accounted for P1.8 billion of consolidated revenues, which rose 28 percent to P2.7 billion.

As of end-December last year, Benpres’ total assets amounted to P30.195, up four percent from the previous year’s P29.01 billion.

Cash and cash equivalents decreased by 15 percent to P879 million from P1.040 billion, after voluntary prepayments were made based on its proposed Balance Sheet Management Plan (BSMP).

In 2004, Benpres voluntarily made payments on its direct and contingent obligations that are covered in the BSMP (excluding contingent obligations in Maynilad which the latter continues to service).