Filinvest posts P3.5-B profit in H1

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 property businesses.

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

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

“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 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 with 10 percent, while the balance came from the hotel group.

Its flagship unit, Filinvest Land Inc., earlier reported a 15-percent profit increase in the first six months of the year to P2.32 billion due to robust 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 and 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 [the] 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, saw net profit increase to P84 million from P19.5 million in the same period last year due to higher average occupancy at Crimson Mactan alongside improvement in the operation of other hotel units.