First Holdings extends P6-B share buyback

MANILA, Philippines - Lopez-led First Philippine Holdings Corp. (FPHC) has extended its P6-billion share buyback program by two years, the company told the local bourse yesterday.

“The board of directors approved yesterday the extension of the buyback program for two years, or from July 11, 2012 to July 10, 2014,” FPHC said.

In July 2010, the holding firm approved the plan to buy P6 billion worth of shares from the public.

“To date, the total buyback of shares has reached the amount of P3.34 billion corresponding to 10.12 percent of the total outstanding capital stock of the company,” FPHC said.

“The program will not involve active and widespread solicitation from stockholders in general,” the company said, adding that the purchase will be conducted through the open market.

“The program is intended to maintain a balance between enhancing the company’s capital structure and ensuring its ability to fund future growth and investments,” FPHC said.

Buyback transactions are triggered when the company’s shares are substantially undervalued.

“The management believes that continuing with the program should work to the benefit of the company and its shareholders as a whole,” FPHC said.

FPHC, through its power generating units, is looking at increasing its capacity by 400-500 megawatts (MW) in the next two to three years.

Current capacity of the company is 2,800 MW through geothermal firm Energy Development Corp. and renewable energy firm First Gen Corp. But only 1,500 MW is attributable to FPHC.

For full year profits, FPHC expects to maintain the trend in growth recorded in the first quarter.

Recurring net income surged 164 percent to P1.86 billion in the first quarter from P704 million a year ago. Revenues jumped to P19.77 billion from P16.34 billion in the same period last year given higher power output.

FPHC also holds shares in Manila Electric Co., Rockwell Land Corp. and solar wafer slicing firm First Philec Nexolon Corp.