New generation takes over Lopez power holding firm

MANILA, Philippines - First Philippine Holdings Corp. chairman and CEO Oscar M. Lopez will relinquish his post in the family-run conglomerate effective June 12, paving the way for his son, Federico R. Lopez, the company’s executive director, to assume the post.

The 80-year old patriarch will, however, remain chairman emeritus of one of the country’s biggest industrial conglomerates.

After an organizational meeting immediately following the annual stockholders’ meeting yesterday, Elpidio L. Ibañez also retained his current position as chief operating officer and president.

The younger Lopez said FPHC would hold on to its 6.6-percent stake in Manila Electric Co. (Meralco) to be able to retain one board seat.

 “With our working arrangement with the Metro Pacific group, we would still have continuity in power distribution,” he said.

He added that they will continue to expand their footprint in power generation, including renewable energy (RE) such as solar, wind and geothermal.

In fact, they will bank on their huge control of the geothermal market in the Philippines as the cornerstone of the company’s entry into the international market.

“We have the second largest geothermal source in the world, and with one of the best expertise to exploit it,” Lopez said.

The Lopez Group has slowly been shifting from power distribution to generation through the construction of the Sta. Rita and San Lorenzo natural gas-fired power plants of First Generation Corp., and the acquisition of Energy Development Corp. (EDC) in November 2007.

Meanwhile, FPHC said it reported a net income of P24.6 billion in the first quarter while recurring income ballooned 446 percent to P972 million.

It likewise earned P23.6 billion from the sale of part of its stake in Meralco.

FPHC has core investments in power generation and distribution, as well as infrastructure, manufacturing and property.