9:41 am | Wednesday, April 30th, 2014
MANILA, Philippines – Lopez Holdings posted a 55-percent decline in 2013 net income attributable to equity holders of parent firm to P1.94 billion in the absence of one-time gains that boosted earnings in the previous year.
To recall, subsidiary First Philippine Holdings Corp. (FPH) sold a 2.66 percent stake in Manila Electric Co. in January 2012 and recorded a gain on business combination following the listing of property unit Rockwell Land Corp. in May 2012.
For 2013, Lopez’ consolidated revenues decreased by 6 percent year-on-year to P94.62 billion following declines in the sale of electricity (-8 percent) and in the sale of merchandise (-61 percent) by FPH. A fire damaged the San Lorenzo Power Plant’s main transformer in May 2013, halving its production until the transformer was replaced before the end of 2013.
“The decision of FPH unit First Gen Corp. to fly in the replacement transformer, even if it required hiring the world’s largest aircraft, showed its solid commitment to providing sufficient, safe and reliable electricity to its customers,” said Lopez president, chief operating officer and chief finance officer Salvador Tirona.
“Meanwhile, ABS-CBN reported strong revenues from both regular and election-advocacy advertising in 2013, which was a mid-term election year. We expect stable operations from both FPH and ABS-CBN this year, before their investments in new ventures gain traction in 2015 to 2016,” Tirona added.
Formerly Benpres Holdings Corp., Lopez was incorporated in 1993 by the Lopez family to serve as the holding company for investments in major development sectors. It is the controlling shareholder of publicly listed First Philippine Holdings Corp. and holds its interest in ABS-CBN Corp. through Lopez Inc. Philippine depository receipts (PDRs).
As of end-2013, Lopez Holdings owned 46 percent of FPH and held a 56 percent economic interest in ABS-CBN.
Under Philippine Accounting Standards adopted on January 1, 2013, Lopez Holdings de-consolidated ABS-CBN and consolidated FPH and in its financial statements. Comparative financial statements for 2012 were restated to reflect the change.
FPH reported a 74 percent decrease in net income attributable to equity holders of the Parent to P2.35 billion in 2013 primarily due to the absence of a gain from sale of investment. For its part, ABS-CBN reported a 25 percent increase in net income for 2013 to P2.03 billion.
Lopez Holdings invested in P197 million worth of preferred shares and P1.5 billion worth of common shares issued by ABS-CBN through Lopez PDRs.
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