FPHC profits drop 26% to ₱9.8 billion
First Philippine Holdings Corporation (FPHC), the industrial and real estate arm of the Lopez group, reported a 26 percent drop in consolidated net income to ₱9.8 billion in the first half of 2020 from ₱13.3 billion in the same period last year.
In a disclosure, the firm said this is primarily due to lower operating profits reflecting the financial impact of the community quarantine measures implemented by the government starting March 16, 2020 in response to the COVID19 pandemic.
This was aggravated by the reversal of non-recurring gains in 2019 (mainly from insurance proceeds received by Energy Development Corporation and foreign exchange gains) to one-off losses in 2020 that largely pertain to COVID-19related donations and expenses.
On a recurring net income basis, FPHC reported earnings of ₱10.2 billion, also lower by 21 percent compared to last year’s ₱12.9 billion.
Consolidated revenues for the period ended June 30, 2020 declined by 21 percent to ₱53.9 billion from ₱67.9 billion.
Sale of electricity went down by 18 percent to ₱47.7 billion from ₱58.1 billion due to lower revenues from First Gen’s natural gas power plants, FG Hydro, and EDC.
Rockwell Land Corporation’s sale of real estate decreased by 52 percent to ₱2.2 billion from ₱4.6 billion mainly due to combined lower sales take-up and construction completion across all of its residential development projects following the suspension of construction activities pursuant to the lockdown restrictions implemented during the community quarantine.
Revenues from contracts and services decreased by 23 percent to ₱3.2 billion from ₱4.1 billion, reflecting the lower contributions of First Balfour and Thermaprime resulting from delays and slowdown on construction projects and drilling services, respectively, during ECQ.
This was further weighed down by lower recurring lease earnings from Rockwell’s commercial spaces following the rent concessions given to retail tenants in response to the closure of establishments during the community quarantine period.
Revenues from sale of merchandise declined by 26 percent to ₱805 million from ₱1.1 billion mainly due to First Philec’s lower volume of electrical transformer sales following the plant shutdown brought about by the restrictions during the community quarantine period. (James A. Loyola)