First Holdings sets aside P26.43 B for capex

MANILA, Philippines - First Philippine Holdings Corp. (FPHC) of the Lopez family has approved the appropriation of P26.43 billion from its retained earnings for various working capital requirements.

FPHC is earmarking the biggest portion of its retained earnings for investment in a liquefied natural gas (LNG) project, the company told the local bourse yesterday.

The LNG project will require an investment of P14.5 billion while debt service will have an appropriation of P4.97 billion.

FPHC will also be pouring in P3.1 billion for investments in other subsidiaries and a total of P3.85 billion to buy back shares and for general corporate purposes.

FPHC has strategic initiatives in manufacturing and property development but its major business is in power generation and distribution.

The company operates the power business through units Energy Development Corp. and renewable energy firm First Gen Corp.

First Gen Corp. is aiming to build the first LNG terminal in the country. LNG is natural gas that has been converted into liquid form for ease of storage or transport.

FPHC is also into property development through Rockwell Land Corp., a listed premier property developer of residential and commercial projects catering to the high-end and upper-mid markets mainly in Metro Manila.

Net earnings of the company rose 36 percent to P4.73 billion in the first nine months of last year on the back of strong performance of its power business.