Lopez holding firms post lower income

MANILA, Philippines - The investment holding firms of the Lopez family recorded lower profits in the first quarter due to a decline in electricity sales of their operating units and the absence of non-recurring income.

In a regulatory filing, First Philippine Holdings Corp. (FPHC) said its net income sank to P1.8 billion from P5 billion.

Lopez Holdings Corp., for its part, reported a 64-percent drop in its profits to P1 billion in the first quarter.

Net income decreased “primarily due to lower revenues from sale of electricity and merchandise and the absence of the gain on sale of investment in shares of stock of Manila Electric Co. (Meralco) this year,” FPHC said.

Last year, FPHC booked a one-time gain of P6.1 billion in the sale of a portion of its investment in power distribution giant Meralco.

The company’s consolidated revenues hit P22.2 billion, down 13 percent from P25.4 billion in the same period last year.

Specifically, revenues from electricity sales fell 11 percent to P20.2 billion “due the decrease in the gas prices and the lower dispatch by the gas plants,” FPHC said.

“This was further reduced by the lower sale of electricity by FG Hydro due to the lower ancillary and electricity sales volume,” it added.

FPHC has a current generating capacity of 2,800 megawatts (MW) through geothermal firm Energy Development Corp. and renewable energy firm First Gen Corp. But only 1,500 MW is attributable to FPHC.

Sales of merchandise slumped 82 percent to P270 million amid weak market conditions, and costumer and partner disputes of solar wafer slicer First Philec Solar Corp.

But FPHC benefited from a 33-percent growth in real estate sales of Rockwell Land Corp. to P906 million. Revenues from contracts and services also increased 40 percent to P774 million “mainly due to the consolidation of revenues from commercial leasing including retail and cinema operations and office leasing of Rockwell Land,” FPHC said.

Meanwhile, Lopez Holdings said its profit sank to P1 billion in the first quarter with the absence of a gain on sale of investment in equity securities.

Last year, Lopez Holdings pocketed P3.39 billion as it sold its 2.66-percent stake in Meralco to Pangilinan-led Beacon Electric Asset Holdings Inc.

Consolidated revenues fell 13 percent to P22.15 billion, “resulting from the 11-percent slide in sale of electricity and the 82-percent drop in sale of merchandise,” the holding firm said.