Riding on with the bright prospects on the energy sector, Lopez-led First Philippine Holdings (FPH) is spending approximately $3.9 billion for several power investments.
FPH Chief Finance Officer Francis Giles Puno said after the firm’s annual stockholders meeting that the company is allocating a combined amount of $3.9 billion for its investments in the power sector.
“The expansion in power gen [generation]within the FPH portfolio will continue. There is a need for more investments in power generation because of increased capacity requirement,” he said.
First Gen Corp. is the primary holding company for the power generation and energy-related businesses of the Lopez Group.
Puno enumerated that the group plans to develop additional mixed capacity of 1,300 megawatts (MW) in its San Gabriel natural gas-fired power plant in the span of three years, as well as from another liquefied natural gas (LNG) plant.
“[We are also planning to build] another 800 MW by 2018, but this time using LNG because of the inadequate supply of the gas from Malampaya,” Puno said, adding that the group is spending $1.6 billion for LNG projects.
“We hope to bring in LNG to supply 1,500 existing [MW] and double that to close to 3,000 MW, to justify LNG regas terminal investment,” he added.
Puno further mentioned that that Energy Development Corp., an FPH subsidiary, is going to spend $300 million for an 87-MW wind project.
Generally, he said that the group will spend “$500 [million]to $600 million in the case of First Gen’s Gas project, and at least $300 million for wind.”
For the regassification terminal, FPH is looking to spend around $1 billion. In the next three years, the group is also looking to develop a hydropower plant that has a potential cost of $240 million.
First Gen continues to be the group’s core earnings contributor for the last five years, generating more than 70 percent of FPH’s total income from investments.
Its real-estate arm, on the other hand, contributed P1.7 billion in 2012 from the group’s increased interest in Rockwell Land Corp. from 49 percent to 86.8 percent, and First Philippine Industrial Park’s robust land sales to global manufacturing leaders.
FPH is currently looking at new areas to build new industrial parks with an increase in locator interest. The company is even planning to expand some of its industrial parks.
“This is precisely why FPH is adopting a more active parenting style over its subsidiaries,” said Federico Lopez, FPH chairman and chief executive officer.