May 28, 2012
As FPH celebrated its first 50 years in 2011, it opens the next 50 years with a new vision: Uplifting lives by creating value in key industries and infrastructure that advance national development.
"The spirit of that vision has inspired FPH for the past five decades and will continue to do so well into the future, wherever in the world we may be," FPH Chairman and Chief Executive Officer Federico R. Lopez said.
Throughout its history, FPH has pioneered and grown some of the country's best companies, recognized as market leaders in key industries. Going forward, the company will fulfill its vision by leveraging the distinct competencies of its platform.
In energy, FPH continues to strengthen its position in the industry through affiliate Energy Development Corporation (EDC). In 2011, EDC started the breakthrough steps in becoming a global leader in clean and renewable energy production. It entered into Joint Venture Agreements with Hot Rock Limited of Australia to develop geothermal exploration projects in Chile and Peru.
In real estate, FPH is anchored by superior brands built by Rockwell Land Corporation (Rockwell Land) and First Philippine Industrial Park (FPIP). FPH has become the majority owner of Rockwell Land, after receiving its property dividends from Meralco in 2012. The increased ownership will further benefit the company as Rockwell Land drives to achieve higher growth in revenues and to leverage its brand into more projects. FPIP aims to expand its landholdings this year, to strengthen its leadership position in the industrial park segment.
The company’s manufacturing sector, through First Philippine Electric Corporation (First Philec), was adversely affected by significant challenges in its solar wafer-slicing businesses. Demand for solar panels slowed down in major country markets worldwide and production capacities, particularly in China, grew and outstripped demand. FPH is closely monitoring the developments in the industry to see what opportunities may arise from the industry’s current challenges.
In infrastructure, First Balfour has evolved from a construction company to one that has built resources and engineering capabilities complementary to FPH's energy businesses. In 2011, it reported a major jump in net income principally from higher construction revenues and considerable earnings contribution from ThermaPrime Inc., its new subsidiary providing well-drilling services to EDC.
First Philippine Industrial Corporation's (FPIC) operating results continued to suffer due to the shutdown of its white oil pipeline operations as the Writ of Kalikasan is still in effect. However, FPIC's team has decisively taken responsibility for cleaning up and restoring the community and environment. It is doubling its efforts to ensure that there are built-in levels of monitoring and safety to ensure that such incident never happens again.
In its annual stockholders’ meeting held today, FPH disclosed its financial results for year-end 2011 and first quarter results for 2012.
For 2011, net income attributable to Parent was at P2.1 billion compared with P24.9 billion in 2010. The decrease in net income was due to the P23.6 billion non-recurring gain from sale of its 6.6% ownership in the Manila Electric Company (Meralco) in 2010 and the P5.0 billion final impairment loss of EDC’s Northern Negros Geothermal Plant in 2011. Without the gain on sale and impairment losses, recurring net income attributable to Parent grew by 126% from P1.5 billion in 2010 to P3.4 billion in 2011.
For first quarter of this year, unaudited net income attributable to Parent was P5.2 billion, significantly higher than last year’s P704 million. This was mainly due to the recognition of the gain on sale of Meralco shares amounting to P3.3 billion and higher earnings contributions from the energy and real estate businesses. Removing the gain from sale, net income attributable to Parent was still higher at P1.9 billion.
"At Parent company FPH, not only do we intend to drive strategic clarity and accountability for investment returns in our platform of businesses but we will ensure that they must also work in synergy...we turn towards our next 50 with a ship that's ready to brave new horizons and take FPH to even greater shores," Lopez said.
For a copy of the speeches and presentations, please click the links below: