Lopez Holdings Corp. posted a 569-percent jump in first-semester net profit to P5.45 billion due to affiliate First Philippine Holdings’ (FPH) one-time gains from the sale of its additional stake in Manila Electric Co. (Meralco) and from the receipt of Rockwell Land shares.
FPH reported an attributable net income of P10.78 billion in the first six months, a turnaround from a loss of P402 million in the same period last year. This was traced to FPH’s P6.08-billion non-recurring gains mainly from the sale of a 2.66-percent stake in Meralco (P3.34 billion). The assignment of Rockwell Land shares from Beacon Electric to the FPH group during the period also boosted FPH’s results.
Equity in net earnings of Lopez affiliates was 39 times higher year on year at P4.91 billion against a net loss of P127 million in the same period last year, likewise due to FPH’s transactions relating to Meralco and Rockwell Land. The accounts of upscale property developer Rockwell Land are consolidated into FPH with the former’s conversion into a subsidiary.
It was earlier reported that broadcasting unit ABS-CBN Corp. reported a 45-percent decline in attributable net income for the first half to P927 million. Removing the effects of the comparative one-time gain from the sale of SkyCable Philippine Depositary Receipts recognized in 2011 amounting to P674 million for ABS-CBN alone, net income in the first semester would have decreased by 8 percent.
Without the extraordinary gains, Lopez said FPH’s net income would still be higher by 811 percent. FPH revenues improved by 27 percent to P39.86 billion in the first semester.
As of end-2011, Lopez held a 60.3-percent economic interest in ABS-CBN and 46.6 percent in FPH.—Doris C. Dumlao