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Friday, March 29, 2024

First Philippines Holdings allocates P51b for 2022 capital expenditures

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First Philippine Holdings Corp. earmarked P51 billion for 2022 capital expenditures mainly to fund the expansion of power generation and property businesses.

FPHC treasurer and chief finance officer Emmanuel Antonio Singson said during the annual stockholders’ meeting Monday the company would allot about 56 percent of the capex budget, or P29 billion, to the power generation group, particularly the drilling and growth initiatives of Energy Development Corp. and First Gen’s liquefied natural gas and Aya pump storage projects.

He said P18 billion would be spent in the property sector mainly for the construction and development projects of Rockwell Land Inc.

The balance of P4 billion would go to construction, manufacturing and new businesses in healthcare and education, he said.

Singson said FPHC’s financial performance would likely be flat this year, compared to the 2021 level.

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PFHC registered a 4-percent decline in net profit to P3.3 billion in the first quarter from P3.4 billion a year ago on the lower earnings contribution of the energy sector.

First-quarter consolidated revenues grew by 26 percent to P35.1 billion from P27.9 billion.

FPPC president and chief operating officer Francis Giles Puno said power demand in Luzon was expected to continue to rise as the economy reopens and quarantine restrictions are gradually relaxed.

Puno, citing data from the Department of Energy, said Luzon demand was expected to grow by 5.46 percent annually between 2022 and 2024.

“We have and continue to experience several instances of thin supply margins due to unplanned outages of several baseload plants that resulted in 26 red alerts and 21 yellow alerts observed in Luzon for 2021. There have already been three yellow alerts in the first quarter of 2022, and we expect that this will persist for the rest of the year,” Puno said.

He said the wholesale electricity spot market prices remain high on power plant reliability issues and seasonal high demand during the dry months.

“We expect this to persist until new power plants come online,” Puno said.

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