First Pacific income up 16%

Increased contribution from Philippine businesses boosted the net profit of Hong Kong-based First Pacific Co. Ltd. by 16.3 percent to $219.3 million in the first six months, compared with the same period last year.

The unaudited six-month financial results of First Pacific—a regional company owned by the Salims of Indonesia and led by Filipino businessman Manuel V. Pangilinan—showed recurring profit rising by 14.3 percent to $219.4 million year on year as a result of significantly stronger earnings by all operating companies in US dollar terms.

First Pacific reported that its profit increase in the first half was driven mostly by higher contributions from Philex Mining Corp., the Philippines’ largest listed mining company and biggest copper and gold producer, and Metro Pacific Investments Corp., a leading infrastructure company.

Metro Pacific Investments contributed $35.4 million, up by 55.9 percent from a year earlier on robust contribution from its water distribution, electricity distribution and healthcare businesses.

Philex, meanwhile, saw a 483.3-percent jump in contribution to $21 million year on year on the back of higher prices of gold and copper, greater volume of ore milled and higher ore grade.

But First Pacific’s crown jewel is still Philippine Long Distance Telephone Co., which contributed $115.4 million in the first half, up by 1.9 percent from a year ago.

“Our strong first-half earnings are a result of continuing strength in the emerging markets where earlier investments made by the company are bearing fruit,” said Pangilinan, who is managing director and chief executive officer of First Pacific.

Apart from being a major shareholder of the Philippines’ biggest telecommunications, infrastructure and mining companies, First Pacific also controls Indonesia’s biggest vertically integrated food company.

“The current volatile state of financial markets, persistent economic weakness in Europe and continuing uncertainty over policy direction of the US economy combine to temper rational enthusiasm,” Pangilinan said in a statement. “Still, we can bear in mind that [members of] the First Pacific Group of Companies are all strong businesses operating in young markets and generating strong cash flows. This bodes well for our future profitability and cash flows.”