Our financial capital are the sources of funds we draw on to maintain and grow our businesses. Through this, we are able to conduct our business activities that generate value for our customers, communities, investors, and other stakeholders. Our approach to managing our financial capital adopts strategies that increase financial returns and avoid, mitigate, or remediate risks. More details on our management approach for financial capital can be found in Annex 3 of our 2020 Integrated Report, uploaded on our website, www.fphc.com.
Sources of Financial Capital
FPH began the year with PHP270.5 billion, of which 51.5 percent is from earnings, 48.2 percent from loans and debts, and 0.3 percent from stocks.
Financial Performance
The consolidated revenues at the end of 2023 is PHP165.0 billion, decreased by PHP5.4 billion or 3 percent, from PHP170.3 billion in 2022, mainly driven by the lower pass-through fuel revenues of the First Gen group, but partly tempered by the higher revenues from the Real estate segment and the stable topline of the Energy solutions group.
On the other hand, FPH’s Consolidated Net Income for 2023 reached PHP29.1 billion, higher by PHP5.2 billion or 22 percent compared to PHP23.9 billion in 2022.
The Net Income Attributable to FPH amounted to PHP15.1 billion, higher by PHP2.4 billion or 19 percent compared to last year’s PHP12.7 billion. The corresponding Recurring Net Income (RNI) attributable to FPH grew by PHP1.0 billion or 8 percent to PHP13.8 billion, a record-high RNI for FPH.
Distribution of Financial Capital
As a consolidated group, FPH returned about 84.7 percent of the total generated value to the economy. This includes value distributed as employee wages and benefits, taxes and payments to the government, payments to capital providers, operating expenses, payment of dividends, assistance to communities, and environmental programs. Throughout the different business segments, values distributed were between 83.2 percent to 127.8 percent of their respective generated values.
- FPH ended 2023 with a strong financial and operational performance, evident in the increase in RNI. The effective utilization of our capitals, synergized with the alignment of our business models, risk measures, and strategic imperatives, enabled FPH and our subsidiaries to thrive in our chosen industries.
- The increase in our financial capital allows our business segments to continue their activities, therefore allowing them to distribute more value to their respective pentad stakeholders. The stable financial performance of the company resulted in the adequate allocation of funds for activities that will preserve or improve the rest of the capitals (manufactured, natural, human, intellectual, social and relationships).
