FDC’s six-month net profit up 19% to P3.5B

GOTIANUN-led conglomerate Filinvest Development Corp. expanded six-month net profit by 19 percent year-on-year to P3.5 billion led by higher earnings from the property businesses.

Based on a regulatory filing on Friday, consolidated revenues jumped by 32 percent year-on-year in the first semester to P24.8 billion.

FDC said revenues increased across all subsidiaries, most notably at FDC Utilities Inc. which saw its first significant revenue stream in the first half of the year, as a result of its independent power producer administrator contracts for 40 megawatts (MW) with Unified Leyte Geothermal Power Plant and 100-MW with Apo Geothermal power plant.

“We are pleased with our first half results, and see this as confirmation of the successful execution of our deliberate strategy to invest in selective growth areas,” FDC chief executive officer Josephine Gotianun-Yap said in a press statement.

“We look forward to seeing our future development plans come to fruition, most especially our 405 MW coal-fired power plant in Misamis Oriental,” she said.

Real estate and banking continued to comprise majority of revenues, at 39 percent and 36 percent, respectively. Power contributed 13 percent, sugar 10 percent, and the balance came from the hotel group.

It was earlier reported that flagship unit Filinvest Land Inc. had grown its six-month net profit by 15 percent year-on-year to P2.32 billion on higher earnings from residential development and office space leasing. On the other hand, banking arm East West Bank posted a 4-percent decline in six-month net profit to P1 billion due to lower trading gains compared to extraordinary levels last year alongside higher provisions for loan losses.

“Due to its position as a leading consumer bank, the bank has access to low-cost funds while it is able to address the needs of a growing consumer population,” said FDC and East West chair Jonathan Gotianun. “We remain bullish on the Philippine economy and expect that bank’s revenues will continue to rise while efficiencies improve,” he added.

Net income from the sugar business reached P432.5 million in the first semester, P161.3 million higher than the previous year.

Hotel operations, on the other hand, increased net profit to P84 million from P19.5 million in the same period last year, attributed to higher average occupancy of Crimson Mactan at 81 percent alongside improvement in the operation of other hotel units.