FILINVEST Development Corp. (FDC) grew its earnings by a third in 2018, driven by higher recurring revenues from its property unit and better energy sales from its power segment.
The Gotianun-led conglomerate said in a statement Wednesday that consolidated net income reached P13.4 billion in 2018, 31% higher year on year. This followed revenues of P73.3 billion, eight percent higher than the P67.6 billion it reported in 2017.
The property and banking segments accounted for the bulk of FDC’s revenues at 43% and 41%, respectively. Its power generation business provided 13%, while the sugar business contributed three percent.
“Our investments, not only in power but also in property and bank infrastructure, are now being reflected in our healthy year-end net income,” FDC Chairman Jonathan T. Gotianun was quoted as saying in a statement.
For the property business, Filinvest Land, Inc. (FLI) delivered a net income of P8.8 billion thanks to an increase in rental revenues. The listed property developer said its office and retail portfolio grew by 27% after leasing out an additional 124,000 square meters (sq.m.) of gross leasable area.
FDC, which controls the group’s hospitality assets, posted a 23% increase in revenues due to improved occupancy rates across all hotel properties and higher revenues from Mimosa Golf Clark. Mimosa Golf Clark is part of the 201-hectare Filinvest Mimosa+ Leisure City in Pampanga.
Meanwhile, EastWest Bank saw its net income drop 10.8% to P4.5 billion, weighed down by smaller lending margins. The company was also affected by temporary regulatory issues regarding teacher loans. Without this item, consumer portfolio of credit cards, auto, home and personal loans grew 16% year on year.
EastWest, however, noted that its return on equity stood at 11% in 2018, which it believes to be one of the highest in the industry.
The power business generated a net income of P2.1 billion for the year, as energy sales from FDC Misamis power plant went up 24% in the same period. FDC Utilities, Inc. has the largest operating baseload power plant in Mindanao with a capacity of 405 megawatts. The company has also recently partnered with multinational energy firm Engie, as they plan to establish a district cooling system with up to 12,000 tons refrigerant for FLI’s office complex in Alabang.
Aside from its core businesses, FDC is also involved in airport infrastructure. It is the lead consortium member for the Luzon International Premier Airport Development Corp., which will handle the 25-year development, operation, and maintenance of the new terminal of the Clark International Airport.
FDC has partnered with JG Summit Holdings, Inc., Changi Airports Philippines (I) Pte., Ltd. and Philippine Airport Ground Support Solutions, Inc. for the new Clark airport terminal.
The company is also part of the consortium of seven of the country’s top conglomerates to rehabilitate the Ninoy Aquino International Airport.
Shares in FDC slipped 0.13% or two centavos to close at P15.96 each at the stock exchange on Wednesday. — Arra B. Francia