First Holdings allots P8.8 billion for geothermal and solar projects

business mirror

MONDAY, 30 MAY 2011 19:27 MIGUEL R. CAMUS / REPORTER

FIRST Philippine Holdings Corp. (FPHC), the listed holding company for the Lopez group’s power and real estate interests, is spending at least P8.8 billion this year to support its geothermal and solar manufacturing units.

Following its stockholders meeting on Monday, FPHC president Elpidio Ibañez said P6.8 billion will be used to rehabilitate its Bacon-Manito (Bac-Man) geothermal project in Bicol, operated by Energy Development Corp.

Another P2 billion will be used for expansion plans of First Philec Solar Corp., which operates a wafer slicing facility. The company allotted roughly P800 million last year in capital spending.

“We have always said this will be a transition year. This is the time for new investments,” Ibañez said. He added that recurring earnings may drop by a third in 2011.

“It all depends on how quickly we can put Bac-Man and how the manufacturing sector will be able to ramp up its business.” In 2010, FPHC said consolidated profit jumped 287 percent to P24.9 billion, mainly due to the sale of a 6.6-percent stake in Manila Electric Co. 

FPHC is also looking to refinance upcoming obligations to take advantage of low interest rate environment.
Ibañez said FPHC can refinance obligations amounting to P10 billion that are due through 2017. He said the company is evaluating its options although he declined to discuss additional details.

Company officials noted on Monday that FPHC will keep its remaining 6.6-percent stake in Meralco. 

FPHC reported earlier that first-quarter net income amounted to P567 million, lower than the P24.56 billion recorded during the same period last year when it sold shares of the power detailer. Revenue also dipped to P16.2 billion, from P18.76 billion in the first quarter of 2010. 

FPHC shares closed flat at P63 each on Monday.