The Gotianun-led holding firm Filinvest Development Corp. (FDC) said its third-quarter net profit fell 12 percent on lower trading gains from its banking business.
Net income for the third quarter reached P3.8 billion or 12 percent lower than last year’s P4.3 billion on a 5-percent decline in net profit of banking subsidiary EastWest Bank.
“Growth in both property and banking was moderated by the industry-wide decline in EastWest trading revenues in 2014 compared to extraordinary trading gains in 2013,” the company said.
For the first nine months, FDC saw a one percent increase in net income to P5 billion from a year ago, while revenues rose 8.2 percent to P27.6 billion from P25.5 billion last year.
FDC’s real estate unit contributed 47 percent to revenues, banking (42 percent), sugar (8 percent) and hotels (3 percent).
FDC President and CEO Josephine Gotianun Yap said higher sales in the first nine months came on aggressive expansion of its business segments, particularly the property unit.
From January to September, Filinvest Land Inc. (FLI) grew its net income by 19 percent to P2.9 billion on strong real estate sales, while EastWest Bank net income decreased five percent from a year ago.
“The Filinvest group has been in an aggressive investment mode with the branch expansion of East West Bank, the build up of office building portfolio of FLI, and the construction of Mindanao’s largest power plant. Such expansion will provide the necessary infrastructure for future solid growth but is expected to impact the group earnings in the short term,” Gotianun Yap said.
The FDC president said the company’s power unit FDC Utilities Inc. will help spur growth in 2015 with its independent power producer administrator (IPPA) contracts, which include the 140-megawatt (MW) contracted capacity of the Mount Apo and Unified Leyte geothermal power plants that are expected to be turned over by the end of the year. Its 405 MW coal plant in Mindanao will be completed by 2016.
The company is also interested in water projects under the public-private partnership (PPP) program of the government, leading a consortium that bought pre-qualification bid documents for the P24.4-billion Bulacan Bulk Water supply project as well as the P18.72-billion New Centennial Water Source-Kaliwa Dam project.
“There is a wide potential in the water supply projects under the PPP program and this strongly complements our water services management expertise that has been there for more than 25 years,” Gotianun Yap said.
The company is eyeing a capacity of 1,000 MW for its power projects in five years to expand its reach in Luzon, on top of existing plants in Visayas and Mindanao.
FDC is owned and operated by the Gotianun family, which has interests in power generation (FDC Utilities Inc.), property (Filinvest Land Inc.), banking (EastWest Banking Corp.), mall, theater and resort hotel (Filarchipelago Hospitality Inc. and Filinvest Hotels Corp.) and sugar farming and milling (Pacific Sugar Holdings Corp.).