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.
First Philippine Holdings Corporation’s (FPH) consolidated recurring net income attributable to Parent for the nine-month period ended September 30, 2013 is almost flat at ₱3.5 billion year-on-year. However, including the non-recurring gains, the net income attributable to Parent was lower by 70% or ₱8.0 billion from last year’s ₱11.4 billion primarily due to the ₱6.1 billion gain on the sale of Meralco shares and the ₱1.8 billion gain related to the investment in Rockwell Land that were recognized last year.
First Gen reported a net income attributable to Parent of ₱4.9 billion (US8.2 million) for the period ended September 30, 2013, lower than last year’s ₱6.4 billion (US0.1 million). The decrease was mainly due to the following: (1) lower earnings contribution of FG Hydro due to reduced sales from ancillary services; (2) lower earnings of First Gas Plants due to decrease in dispatch brought about by a scheduled major maintenance outage at the 1,000MW Santa Rita power plant and the fire that occurred at San Lorenzo’s Unit 60 transformer last May; and (3) EDC’s foreign exchange losses resulting from the unfavorable effect of the Peso depreciation on its long-term foreign currency loans. These were, however, partially offset by the nine-month contribution from the 40.0% stake in the gas plants acquired from the BG Group in May 2012. There was also a reduction in finance costs of First Gen following the prepayment of its US2 million Term Loan, its Dual Currency Loan and the redemption of its Convertible Bonds.
Rockwell Land registered a net profit of ₱923 million, up by 31% from last year’s ₱706 million, primarily driven by the growth in the contribution of its residential development namely Edades Tower and Garden Villas, The Grove and 205 Santolan. Rockwell also continues to generate strong demand with reservation sales reaching a total of ₱10.9 billion by September, up by 88% against last year. Alvendia, an exclusive low-rise community, and 53 Benitez, its first midrise development project, was launched last July 2013. Also, commercial leasing revenues, which include retail and cinema operations, grew as a result of rental escalation and higher occupancy rate.
First Philippine Industrial Park reported a net income of ₱191 million, significantly lower than the prior year’s net income of ₱939 million primarily due to lower industrial land sales. With the growing interest among foreign companies to relocate in the Philippines, FPIP is currently expanding its industrial park and is continuing to develop its recurring income base with the development of additional ready built factories, water supply and waste water treatment facilities and ancillary services.
First Balfour posted a net income of ₱223 million, significantly higher than last year’s income of ₱148 million. The improved earnings resulted from the new contracted projects and higher incremental completion of the existing projects of its construction business and higher gross margin on its drilling business.
First Philec incurred a total net loss of ₱427 million for the current period, an improvement from the ₱1.8 billion net loss reported last year. This was due to lower provision for expenses in relation to the arbitration proceedings and the termination of supply agreements with joint venture partners/customers in the solar business.
Listing of Rockwell Land’s ₱5.0 billion Retail Bonds
On November 15, 2013, Rockwell Land listed its first ₱5.0 billion retail bonds on the Philippine Dealing & Exchange Corporation (PDEX). The funds raised from the bonds will be used primarily for The Proscenium, the company’s latest mixed-use project. The bonds are due in February 2021, at an interest rate of 5.0932% per annum. Rockwell Land was assigned an “AA+” issuer rating by The Credit Rating and Investors Services Philippines Inc. (CRISP).
Replacement Transformer for San Lorenzo’s Unit 60
A replacement for the burned San Lorenzo’s Unit 60 transformer was ordered and has been delivered at the site in preparation for recommissioning.