DEC. 2011-JAN. 2012 www.lopezlink.ph http://www.facebook.com/lopezlinkonline www.twitter.com/lopezlinkph Happy holidays! Photo by: Ready for Christmas! RESIDILLATHEO THE panic-stricken scenarios that unfold in malls and other retail centers, especially at the approach of Christmas when everyone and his mother are caught in a frenzy of bargain-hunting and gift-hoarding, make a good case for checking out Power Plant Mall at Rockwell Center. Turn to page 8 Four child wonders At the Lopez Group ‘Da best’ Christmas budget conference in one ‘Christmas- …page 14 ...page 2 serye’...page 4 Lopezlink Dec. 2011-Jan. 2012 BIZ NEWS January 2011-September 2011 financial results Net income/loss attributable to TOTAL REVENUES Period equity holders of the parent company At the annual budget conference January- September 2010 2011 % change 2010 2011 % change P2.240B -26 Business challenges ABS-CBN P24.743B P21.125B -15 P2.901B LPZ P24.742B P21.125B -15 P13.035B P3.513B -73 EDC P19.322B P18.222B -6 P7.126B (P670.2M) -109 $11.6M -83 surmountable First Gen $980.1M $1.026B +5 $66.5M FPH P50.924B P51.947B +2 P25.456B* P668M -97 LOPEZ Group chairman Amb. The Lopez Group was taken time…That is the kind of uni- Manuel M. Lopez believes the to task by two newspaper col- ty we require. Held together *Including P23.6 billion combined gain on the sale of Meralco shares (6.6%) and the mark-to-market challenges faced by the Group’s umnists for loans supposedly by our values, let us stand to- restatement of its Meralco shares various business units are sur- written off by the Development gether to defend the Group mountable for as long as they Bank of the Philippines under against those who malign our remain united in looking after the Special Purpose Vehicle law. companies and our leaders be- Lopez Holdings attributable the customers’ needs. The loans were actually restruc- cause of their own ignorance At the Group’s strategic tured via court-assisted reha- or of ill will.” planning and annual budget bilitation, or with the consent of In closing, Amb. Lopez said, net income slips to P3.51B conference held on Novem- creditors at the company level. “Even as we defend ourselves LOPEZ Holdings Corporation gust 2011. LPZ offered to buy decline to P888M, representing ber 21, Amb. Lopez expressed Having worked in Meralco, from unjust accusations, let us (LPZ) posted P3.513 billion in back approximately $41 million LPZ’s share in the net income confidence in the Group’s abil- the country’s largest electric not allow political intrigue to net income attributable to eq- in unrestructured obligations at of FPH for 9M2011 due to the ity to respond to market and utility, for 27 years, the ambas- distract us from strengthening uity holders of the parent for the par value, and accepted tenders recognition of impairment loss economic forces with the “right sador is no stranger to negative and growing our businesses. first nine months of 2011. This for 82% of the amount. on Energy Development Corpo- strategy and the right teams.” press. He said he learned to Our focus should remain on is 73% lower than the P13.035B Unaudited consolidated rev- ration’s Northern Negros Geo- He said, “All the more we value good communication and our customers: what they want, net income attributable to enues dropped by 15% year-on- thermal Power Plant. Gain on should unite and demonstrate good teams because of persis- what they need, and what we equity holders of the parent in year (YoY) to P21.125B from sale of investment in the amount excellence in our work. Let us tent media attacks. want them to want and need the first nine months of 2010. P24.742B, reflecting a challeng- of P918M is from the sale of continuously monitor the en- The ambassador was pleased from us. That remains the real The 9M2010 results include ing year for associate ABS-CBN Philippine Depositary Receipts vironment from our multiple with the coming together of challenge of our time.” LPZ’s share in the gain on sale Corporation in the absence of of SkyCable Corporation by both perspectives, and do business cross-functional and cross-com- Meanwhile, Lopez Group of Meralco shares by associate election-related advertising. ABS-CBN and LPZ, which was intelligence for one another.” pany teams in the Lopez Group vice chairman Eugenio Lopez First Philippine Holdings Cor- Finance costs-net decreased first reported in Q1 2011. The chairman thanked top to respond to issues affecting III (EL3) explained why allega- poration (FPH). by 26% to P625M from P847M Other income mainly rep- executives for their malasakit the various business units. tions of wrongdoing by the two Cushioning the impact of a due to lower interest and finance resents the reversal of accrued as they persevered in their “I am proud that the various columnists against the Group weaker year for its investees, LPZ charges on both ABS-CBN and interest on debt buyback fol- work despite a barrage of neg- parts of the Group, despite the are misplaced, misguided and recorded P2.106B as reversal of LPZ debt during the period. lowing the company’s tender ative publicity hurled against disparate businesses we oper- unfair (see full text of EL3’s re- accrued interest on debt buyback, Equity in net earnings of associ- offer in August 2011.(Carla P. the Group last month. ate, can close ranks at crunch marks on page 6). (Carla P. Sison) following its tender offer in Au- ates for the period posted a 92% Sison) FPH consolidated revenues up 2% First Gen reports attributable THE consolidated revenues 2011 and 82% in 2010. Rev- of 89.9% for the period ended net income of $11.5M of First Philippine Holdings enue from sale of electricity September 30, 2011 compared FIRST Gen Corporation re- ing costs declined by 16.9% to issued amount of $260.0M. Corporation (FPH) for the nine went up by P2.2B, or 5%, to to 83.3% posted in 2010. ported an attributable net income $66.5M, from $80.1M as of First Gen also issued non-call months ended September 30, P43.7B due to the increase in Sale of merchandise grew to parent of $11.5 million for the September 2010. Other than seven-year perpetual preferred 2011 totaled P51.9 billion, high- the prices of natural gas, and by 40% (P1.7B) to P5.9B due nine months ended 2011, a de- scheduled loan payments of the shares of P10.0B last July 2011. er by 2% or P1.0B compared to higher fuel charges resulting to higher revenues reported by cline of 82.6% compared to the company’s subsidiaries, First Part of the proceeds was used the previous year’s P50.9B. from the combination of a First Philec Solar Corporation. same period last year. The decline Gen also bought back substan- to prepay the P5.0B outstand- Sale of electricity accounted higher dispatch from the Santa Revenues from contracts is mostly attributable to an im- tial amounts of its convertible ing debt of Unified Holdings for 84% of total revenues in Rita and San Lorenzo plants and services went up by 101% pairment charge of P5.0 billion bonds. The outstanding amount Corporation, the owner of the (P1.2B) to P2.4B, mainly due by its affiliate Energy Develop- of the bond is now $70.0M, 60.0% stake in the San Loren- to the consolidated revenues ment Corporation (EDC) for its down 73.1% from the original zo plant. ( Joel Gaborni) on construction and drilling 49-MW Northern Negros Geo- ABS-CBN nets P2.2B contracts of First Balfour and its thermal Power Plant. The non- THE consolidated net income of P7.8B, posting a 1% decline wholly-owned subsidiary Ther- cash charge was earlier reported ABS-CBN Corporation registered from a year ago. ABS-CBN maPrime Well Services Inc., in June of this year. EDC earns P1,809M P2.2 billion for the nine months Global revenues declined by which was consolidated in July First Gen Hydro Power Cor- ENERGY Development Cor- than the P1,956M net income in ended September 30, 2011. 11% YoY in peso terms due to 2011. The increase was partially poration, the owner of the 132- poration (EDC) reported a net the same quarter in 2010 mainly ABS-CBN delivered consoli- the decline in subscribers and offset by the decline in revenues MW Pantabangan-Masiway income of P1,809 million for on account of forgone revenues dated revenues of P21.1B from the appreciation of the Philip- of First Philippine Industrial hydroelectric power plants, con- the third quarter of 2011, with from the sale of geothermal steam advertising and consumer sales, a pine peso against the US dol- Corporation due to the impact tributed lower revenues due to P1,661M attributable to the due to delays in the recommis- 15% decline compared to a year lar. Meanwhile, SKYcable con- of the continued shutdown of limited water availability coupled equity holders of the parent com- sioning of the Bacman geothermal ago. Less the revenues from politi- tinues to contribute positively white oil pipeline operations. with a decline in the wholesale pany. This has reduced its year-to- power plants. The Bacman power cal advocacies and advertisements with revenues increasing by Equity in net earnings declined electricity spot market prices. date net loss to P488M, which plants are undergoing massive in 2010, consolidated revenues in 10% to P3.2B. by 104% (P3.4B) from last year First Gen’s consolidated rev- is primarily attributed to the full rehabilitation and are expected to the nine months of 2011 declined Total operating and other resulting in equity in net losses enues were higher by $45.9M, impairment of the Northern achieve commercial operations by by 3% year-on-year (YoY).