PUBLICLY listed companies associated with the Lopez Group are on track for record operational and financial performances with revenues and profits, posting strong year-onyear growth in the first semester of 2010.

EDC net income soars 114% Combined power plant operations boosted the financial performance of geothermal leader Energy Development Corporation (EDC) as it posted a 114% increase in its income for the first six months of the year. EDC earned P5.74 billion for the first half of 2010, more than double the P2.69B registered for the same period in 2009. Of its subsidiaries, First Gen Hydro contributed P1.06B to the total net income for the first half. Income from the Mindanao geothermal plants improved to P436.4 million from P343.2M with the elimination of BOT (build-operate-transfer) fees after the turnover to EDC in June last year. However, as a stand-alone entity, Green Core Geothermal Inc. (GCGI) reported a net loss of P0.26B.

“The successful acquisition of NPC-owned geothermal power plants is an integral component of our forward integration growth strategy. Despite investor concerns on the immediate impact of loss steam revenues for the Bacman acquisition, EDC’s purchase of the power plant remains value-enhancing for the company,” EDC president and COO Richard Tantoco said.

The company’s core net income increased by 89% to P4.85B from P2.57B. (Toni Nieva) First Gen attributable net income up 158% First Gen Corporation reported attributable net income of $50 million in the first semester of 2010, up by 158% from $19.4M posted in the same period last year. Consolidated revenues likewise jumped by $129.1M, or 24% to $655.4M in 2010 from last year’s $526.3M.

Revenues from sale of electricity by the Santa Rita and the San Lorenzo gas-fired power plants increased by 16% to $599.1M in 1H 2010 from $517.0M in 1H 2009. The first half earnings of First Gen were further supplemented by the improved financial performance of affiliates EDC and First Gen Hydro Power Corporation. Affiliate Red Vulcan Holdings Corporation likewise benefited from a deleveraging program made possible with the successful P15.0B rights offering of First Gen in January 2010.

“… Our financial normalization program continues to be a priority for First Gen. And while our First Gas plants continue to contribute solid results, the positive effects of the management focus we are putting to improve the value of EDC is clearly evident in its stronger results…,” First Gen president Giles Puno said.

Meralco consolidated core net income hits P5.8B Meralco announced consolidated core net income, which excludes one-time, exceptional charges, for the first half of 2010 of P5.8B. Consolidated reported net income amounted to P4.8B. The profit improvements reflect the significantly higher volume of energy sold with the surge in demand by all customer classes.

Consolidated revenues, of which electricity sales accounted for 98%, increased by 35% to P127.5B in the first six months of 2010. Total costs and expenses amounted to P120.3B, 34% higher than the comparative period, with cost of purchased power comprising 87% of total costs and expenses in 2010, compared with 85% in 2009.

Consolidated capital expenditures for the first half amounted to P3.2B, with electric capital projects accounting for 90% of the total, consisting of expansion of existing substations and commissioning of new distribution feeders.

Cash and cash equivalents as of the end of the first half amounted to P15.3B, 64% higher than the balance last year. (Meralco Corporate Communication) FPHC recurring net income jumps to P1.3B First Philippine Holdings Corporation (FPHC) posted a record high net income of P27.0B in the first half of the year, chiefly due to the gain from sale of Meralco shares, mark-to-market gains, higher finance income and lower finance costs.

Unaudited net income attributable to equity holders of the parent was P24.9B, significantly better against last year’s P849M. Basic earnings per share was at P41.605, while diluted earnings per share was at P41.450, both higher versus last year’s. Without the gain from sale of Meralco shares, net income attributable to parent amounted to P1.3B, better by 52% against 1H 2009.

Federico R. Lopez, FPHC chairman and chief executive, said: “We will continue to strengthen the strategic positioning of our businesses. …In the coming months we will be taking the necessary steps to deepen the synergies among our different subsidiaries and place them on an even stronger path toward growth and profitability.”

ABS-CBN net profits nearly triple ABS-CBN Corporation generated profits of P2.265B from strong growth in regular advertising revenues, complemented by political ad spending. This is 179% more than net income of P813M in the first half of 2009.

ABS-CBN brought in consolidated revenues of P16.84B from advertising and consumer sales, which are 44% higher than the P11.69B in the first half of 2009. Consolidated advertising revenues across all platforms and subsidiaries reached P11.5B in the first six months of the year, 71% higher than the P6.72B in the same period in 2009. This total includes nonrecurring advertising revenues amounting to P2.33B, which are advertising revenues from political advocacies and political ads.

Recurring advertising revenues, mostly from regular advertisers, grew by P2.45B or 36% to P9.17B. Total advertising minutes sold in the first six months of the year jumped 42%. Advertising minutes sold to regular advertisers in the first semester rose 26%. Total expenses in the first six months of 2010 grew by 23% year-on-year to P11.32B, driven mostly by higher production costs and general and administrative expenses.

Recurring net income reached P1.26B in the first half of 2010, 55% more than the P813M net income generated in the first half of 2009. Net income from nonrecurring political ad revenues amounted to P1B for the first semester of the year. Consequently, total reported net income for the first semester reached P2.27B, surpassing full year 2009 net income.

Lopez Holdings income 24x higher Lopez Holdings Corporation reported P11.376B in net income attributable to equity holders of the parent for the first six months of 2010. The amount is 24x the P475M net income attributable to equity holders of the parent in the comparable period of 2009. Equity in net earnings of associates soared 22x to P10.641B from P474M year-on-year as associate FPHC completed the sale of a 6.7% stake in Meralco in the first quarter of 2010.

Meanwhile, net finance costs decreased by 23% to P564M from P730M due to lower debt levels, following a significant buyback in August 2009. Unaudited consolidated revenues of P16.839B in 1H 2010 was an increase of 44% over the P11.686B posted in 1H 2009, and reflects the strong performance of associate ABS-CBN Corporation.

“Without the gain on sale, FPHC’s net income attributable to parent for the first semester would have been P1.3B which is significantly higher than last year’s restated net profit of P849M due to the surge in earnings contribution of its subsidiaries. This tells us that investments made in earlier years by FPHC, and by ABSCBN…, are now giving us the expected returns. With their strategic directions clearly set at the operating company level, we know that both FPHC and ABS-CBN can sustain their solid performance for the rest of the year,” said Lopez Holdings president Salvador G. Tirona.

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