FIRST PHILIPPINE HOLDINGS CORP., THE Lopezes? holding firm for power-related businesses, posted P7.85 billion in net profit in the first nine months of the year, up from only P156 million a year ago.

This was due mainly to gains from the sale of a substantial stake in power retailer Manila Electric Co.

But even excluding the nonrecurring gains, FPH posted a core nine-month net income of P615 million, nearly four times better than the year-ago level.

?Our strategic efforts to pare down debt at the holding company level and strengthen our balance sheet have so far yielded strong results. Moving forward, the proceeds of the sale (of Meralco shares) will provide us with excellent opportunities to further create value for our shareholders.? First Holdings president and COO Elpidio L. Ibañez said.

A 20-percent stake in Meralco was sold by the Lopezes in July to Philippine Long Distance Telephone Co. for about P20 billion, out of which FPH booked a one-time gain of P7.2 billion.

Aided by proceeds from the sale, FPH?s loans payable fell by 99 percent, from P22.4 billion to P270 million. The decline was due to the full settlement of a bridge loan by flagship First Gen Corp. and the de-consolidation of geothermal power unit Energy Development Corp., a controlling stake in which was previously acquired from the government.

The balance of P270 million in obligations formed part of the short-term loans of First Philippine Electric Corp. and First Electro Dynamics Corp.

Consolidated revenue amounted to P43.5 billion during the period, down by 6 percent from year-ago level. This was due to lower electricity sales resulting from lower average gas prices and reduced dispatch of the power plants owned by power generation unit First Gen.

Correspondingly, consolidated costs and expenses went down by 8 percent to P35.1 billion.