FIRST PHILIPPINE HOLDINGS IS A CORPORATION THAT IS CONSTANTLY IN ACTION. WE’RE ALWAYS TRYING TO FIND WAYS TO DELIVER FOR OUR STAKEHOLDERS AND THE FILIPINO PEOPLE.
Bolstered by one-time gains from the sale of its 20 percent stake in Manila Electric Company (Meralco) last July 2009, First Philippine Holdings Corporation (First Holdings) posted a net income attributable to equity holders of the parent amounting to P7.8 billion. The one-time gain from the Meralco sale amounted to P7.2 billion. Recurring net income of P615 million outperformed last year’s bottomline of P156 million.
On July 14, 2009, First Holdings completed the sale of 223 million Meralco common shares, or approximately 20 percent of the latter’s outstanding common stock, for P20.07 billion. The deal was made pursuant to an Investment and Cooperation Agreement signed between First Holdings and PLDT last March 12, 2009 wherein both parties also agreed on certain corporate governance principles such as the nomination of directors to the Meralco Board.
First Holdings President and COO Elpidio L. Ibañez remarked, “Our strategic efforts to pare down debt at the holding company level and strengthen our balance sheet have so far yielded strong results. Moving forward, the proceeds of the sale will provide us with excellent opportunities to further create value for our shareholders.”
Consolidated revenues amounted to P43.5 billion during the period, down by 6% compared to last year. The decline was mainly driven by lower electricity sales resulting from lower average gas prices and reduced dispatch of the power plants owned by First Gen Corporation (First Gen), First Holdings’ major subsidiary in power generation.Correspondingly, consolidated costs and expenses went down by 8% to P35.1 billion.
Finance costs of P5.3 billion went up by 17% compared to last year mainly due to the 4 million refinancing of First Gas Power Corporation (FGPC) and a P5.4 billion corporate notes issuance of Unified Holdings Corporation (UHC). Both FGPC and UHC are First Gen units. Other income declined by 80% to P127 million due mainly to mark-to-market gains on derivative transactions recorded by First Gen in 2008.