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.
FPHC Gets a ‘PRS Aaa minus’ rating
The Philippine Ratings Services Corporation (Philratings) is giving First Philippine Holdings Corporation’s (FPHC) P3 billion Fixed Rate Commercial Note (FRCN) issuance a ‘PRS Aaa minus’ rating. This rating is given to debt obligations with the “smallest degree of investment risk”.
PhilRatings noted FPHC’s strengths: stable and growing earnings and cash flow streams of its main revenue drivers (First Gen Corporation or First Gen and Manila North Tollways Corporation or MNTC), strong competitive positions of First Gen and MNTC, the emergence of other sources of income, operating efficiencies, a proven track record in the energy business, a competent management team and a moderate reliance on debt.
As of September 30, 2006, FPHC’s unaudited consolidated revenues increased by 13%, from P38.9 billion to P43.9 billion. Unaudited consolidated net income likewise increased by 58.7% to P9.6 billion from P6.1 billion in the same period last year. The increase was mainly due to from the proceeds of the successful First Gen IPO held last February 2006. For the same period, FPHC’s consolidated debt to capitalization ratio declined from 57.7% in 2004 to 45.6% in September 2006. On the other hand, total equity attributable to equity holders of the parent continued to increase with the plow back of income into its operations and the increase in common stock from the issuance of additional shares. Last December, the favorable Supreme Court ruling on the unbundling case of Meralco will result in an increase in our net profits since provisions have been made in case of an unfavorable decision.
First Gen continues to be the country’s largest Filipino-owned and -controlled private power producer with a capacity of 1,839 megawatts (MW). It had recently acquired the 112 MW Pantabangan-Masiway hydroelectric power complex from the auction of the Power Sector Assets & Liabilities Management. First Gen’s agreements with Meralco and the National Power Corporation assure the company with stable revenues and cash flows.
MNTC is the largest private tollroad company in the Philippines, operating the 433-lane kilometers of the North Luzon Expressway (NLEX). The NLEX continues to be the main artery to Central and Northern Luzon, areas wherein an increase in economic development is predicted with the opening of the Diosdado Macapagal International Airport in Clark, Pampanga and the Subic-Clark-Tarlac Expressway.
ING Bank is the sole bookrunner and lead manager.