First Philippine Holdings Corporation (FPH) highlighted the solid performance and growth plans of its energy and real estate sectors in its May 27 annual stockholders’ meeting.
Its energy group led by First Gen Corporation continues to be the company’s core earnings contributor for the last five years, generating more than 70% of FPH’s total income from investments. Its real estate sector contributed P1.7 billion in 2012. This was due to the company’s increased interest in Rockwell Land Corporation from 49% to 86.8% and First Philippine Industrial Park’s (FPIP) robust land sales to global manufacturing leaders.
“We are eager to sweat our platform of assets more, maximize potential, and have all our subsidiaries firing on all cylinders in the coming years. This is precisely why FPH is adopting a more active parenting style over its subsidiaries, empowering them to become the growth engines of our company in the decades to come,” FPH chairman and CEO Federico R. Lopez (FRL) said.
First Gen is pursuing growth plans across its energy platforms. In natural gas, it will develop the 1,300-MW San Gabriel project in three phases, from 2013 to 2018. In its initial phase, the project will utilize gas from the Malampaya field. In the latter phase, it will develop liquefied natural gas (LNG) receiving and regasification facilities using imported LNG.
In renewable energy, First Gen will build 63-MW runof- river hydropower plants in Mindanao; continue geothermal exploratory activities in Chile, Energy, real estate propel FPH growth Lopez Holdings Corporation will continue to provide support for core investees ABS-CBN Corporation and First Philippine Holdings Corporation (FPH) to ensure sustainable returns to shareholders.
At its annual meeting on May 30, Lopez Holdings president Salvador G. Tirona told shareholders the company is “committed to support its core companies by all means necessary to secure their path toward sustainable growth.”
Lopez Holdings had to restructure over $560 million in debt in 2002, after investees in telecom and water distribution were seriously crippled by the Asian financial contagion in 1997. The company reduced obligations through the sale of stakes in toll roads, property development and a tertiary hospital, as well as the repurchase of debt papers. As of March 31, 2013, unrestructured debt was at P67M (less than $2M), with the company current on $23M in restructured debt.
Ambassador to Tokyo Manuel M. Lopez, chairman of Lopez Holdings, announced a P0.125 per share cash dividend, as approved by the company’s board of directors. Record date was set on June 14, 2013 and payment date on or before June 28. The company declared cash dividends of P0.10 per share in 2011 and 2012, based on previous year’s incomes. The 2013 cash dividend is based on the 2012 net income, which benefited from a one-time gain booked by FPH from the sale of Meralco shares.
The core investments of Lopez Holdings are in media and communications through ABS-CBN and in sustainable energy development, infrastructure, property development and green manufacturing through FPH. Lopez Holdings to focus on sustaining shareholder returns Peru and Indonesia through its subsidiary Energy Development Corporation (EDC); and construct the 87-MW Burgos wind power project of EDC and turbine manufacturer Vestas of Denmark.
Rockwell Land strengthened its leadership in the highend residential segment with the strong sales of 205 Santolan and The Proscenium. This year, it will launch The Alvendia Gardens, its second townhouse development, and Lincoln, The Proscenium’s third tower.
Rockwell Land will make its first foray into the broader market segment with the 53 Benitez midrise development in Quezon City and launch its first project outside Manila with the acquisition of a 3.1- hectare property in Cebu City.
In 2012, FPIP’s locators created 40,000 jobs at its site in Sto. Tomas, Batangas as five global giants located their manufacturing operations in the Philippines: Canon, Brother, Murata, BE Aerospace and Sonion. By 2014, when these locators have fully established their operations, another 10,000 jobs will have been created in the 450-hectare economic zone.
FRL said: “What we are seeing today in FPH is a massive redeployment of your company’s capital, talent and resources from a highly regulated utility business like Meralco into more competitive ones...Never lost in our thoughts is the belief that each day spent at work is not just about building a company, it’s about building a nation and everything about making the world a better place.” (Contributed by: Carla Paras-Sison)