Filinvest upbeat on power business

by Alena Mae S. Flores – April 29, 2016 at 11:40 pm

from Manila Standard Today

Filinvest Development Corp., the holding company of the Gotianun family, expressed optimism over its growth prospects this year as it prepares for the opening of a 405-megawatt coal plant in Misamis Oriental province in the second quarter.

“We are excited this year as we expect to start commissioning the first unit of our 3 x 135 MW coal plant in Misamis Oriental in the second quarter of 2016 while the remaining units will follow within the year,” FDC president and chief executive Josephine Gotianun-Yap said in a statement.

FDC reported a 13-percent growth in net income in 2015 to P7 billion.

“With the addition of 405 MW of much needed power to the Mindanao grid, we look forward to partnering with the region in accelerating growth,” Gotianun-Yap said.

The company generated P49.3 billion in revenues last year, with 43 percent coming from real estate business units Filinvest Land Inc. and Filinvest Alabang Inc.

FDC and Filinvest Land recently won the bid for the privatization of the former Mimosa Leisure Estate and signed the lease agreement with Clark Development Corp.

EastWest Bank contributed 37 percent of revenues while FDC Utilities Inc., the group’s power subsidiary, made a significant contribution at 13 percent.

FDC Utilities recognized revenues from its independent power producer administrator contracts, including 40 MW from the Unified Leyte and 100 MW from Apo 1 and 2 geothermal power plants.

The balance of last year’s revenues came from the sugar and hotel businesses.

Gotianun-Yap said the company was focused on amplifying its portfolio in growth areas of the economy.  She said the last three years marked a period of major investments.

Among the company’s investments were the branch-store expansion of EastWest, which grew to 433 at the end of 2015 from 265 branches in 2011, increasing the gross leasable space at Filinvest Land, which doubled from 2009 levels and the upcoming commissioning of the 405-MW coal plant in Mindanao.

“These investing activities are all reasons why the net income, albeit growing steadily, has not kept pace with the increase in revenues. Full-year revenues from these investments will be felt in the succeeding years,” she said.

FDC ended 2015 with total assets of P419.5 billion, up 22 percent over 2014. Stockholder’s equity at year-end was at P97.1 billion or up 8 percent over the previous year.

FDC also announced the issuance of dividends amounting to P0.0516 per share for a total pay out of P481 million, or equivalent to a pay out rate of 11 percent.