Profits of Lopez-led First Philippine Holdings Corp. dived by nearly three quarters last year as it continued to pare down debts as well as cover foreign exchange losses and high operating costs.

In a statement, the company said its net income went down by 73% to P1.2 billion, pointing to high financing costs and foreign exchange losses.

"The turmoil in the global financial markets compels First Holdings to continuously pare down its debts. Fund-raising activities, therefore, have been and will continue to be our priority." First Philippine Holdings president and chief operating officer, Elpidio L. Ibañez, said. No other details were provided.

Mr. Ibañez said the company approved yesterday amendments to its by-laws, which will give the company ample time to review candidates nominated as directors and check proxies submitted for stockholders’ meetings.

First Philippine Holdings’s core businesses are power and infrastructure, but it has "strategic initiatives" in manufacturing and property.

Its power generation unit, First Gen Corp., is the largest "vertically integrated" power firm in the country, with an installed capacity of 2,582 megawatts or 16% of the Philippines’ total installed capacity.

The company last month sold 20% of its stake in power distributor Manila Electric Co. (Meralco) to Philippine Long Distance Telephone Co. (PLDT) units for P20 billion to reduce its $500-million debt.

The sale reduced the stake the Lopezes in Meralco to 13.4%.

PLDT is poised to become the single biggest shareholder of Meralco. Food and beverage conglomerate San Miguel Corp. holds 27% while ally Global 5000 Investments has an 11% interest.

The Lopezes are said to have found an ally in PLDT chief Manuel V. Pangilinan, whose firm faces competition from a diversifying San Miguel, which is venturing into telecommunications.

PLDT Chairman Manuel V. Pangilinan told reporters yesterday that it was unlikely that he would be Meralco chairman, pointing out that the position might still be given to Manuel M. Lopez, the utility’s incumbent chairman.

But PLDT wants to name Meralco’s chief finance officer (CFO).

"Meralco should have a full-time CFO," Mr. Pangilinan said.

San Miguel-backed Ferdinand K. Constantino, who also sits as CFO of the food conglomerate, was appointed Meralco’s top finance officer earlier this year.

Mr. Pangilinan said his camp would likely talk to San Miguel camp after the Holy Week break to discuss plans for Meralco, among which include the 30% power rate reduction that San Miguel had proposed. — Kristine Jane R. Liu