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By Likha Cuevas-Miel, Reporter
Profits of First Philippine
Holding Corp., parent firm of Manila Electric Co., plummeted in
first quarter due to huge foreign exchange losses, exacerbated by
increased finance charges and higher taxes paid by its
power-generating arm, First Gen Corp.
In a statement, FPHC said its
unaudited income attributable to equity holders of the parent fell
by 79 percent to P223 million in the first three months as it
registered foreign exchange losses of about P3.5 billion. The
holding firm’s finance charges also surged 95 percent to P2.5
billion as FPHC and its unit First Gen Corp. borrowed heavily to
fund acquisitions.
The FPHC’s earnings were also
dragged down by higher provision for income tax of P1.1 billion as
the income-tax holiday of First Gen’s Sta. Rita power plant
expired in May last year.
“The overall environment will
continue to be challenging with the global economic recession
impacting the local economy . . . this year will be focused on
integrating and normalizing the major acquisitions we made last
year,” said Elpidio Ibanez, FPHC president.
First Gen, the holding firm’s
biggest revenue contributor, experienced a 52-percent drop to $16
million in net income within the period due to the aforementioned
financial charges. FPHC said these were incurred when First Gen
borrowed to buy the controlling stake in PNOC-Energy Development
Corp. last year.
Meralco, the Philippines’
biggest power distributor, posted a net income growth of 23 percent
to P655 million year-on-year following a 2-percent increase in
energy sales. Manila North Tollways Corporation’s net income also
grew by 6 percent to P439 million on the back of lower depreciation
and amortization expenses upon the adoption of Philippine
Interpretation IFRIC 12, a new accounting standard on service
concession arrangements.
The manufacturing group under
First Philippine Electric Corporation (First Philec) reported a
74-percent surge in net income that reached P6 million due to lower
contributions from its electricals division.
Rockwell Land Corporation also
posted net earnings of P181 million, 39 percent more than it did
last year as revenue contributions from its condominium project
called One Rockwell started to kick in. The project is currently 95
percent pre-sold.
Last month, the company raised
about P4.3 billion from its sale of perpetual preferred shares that
were later listed in the Philippine Stock Exchange. These shares
have a dividend rate of 8.7231 percent payable semi-annually. The
fresh capital will be used to pay outstanding debts, fund strategic
acquisitions, and cover capital and operating requirements.
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