Lopez Holdings: When Expenses Rose Faster


Lopez Holdings (LPZ), Philippine-based 22 billion investment holding company, recently reported its 2017 financial operations.

LPZ generated most of its business or 82% of its revenue from electricity sales.

The company reported 14% rise in revenue but delivered a contrasting 36% drop in profits.

In review, LPZ added 13 billion in revenue but expenses rose 13.3 billion therefore eating any additional business generated in 2017.

Specifically, LPZ stated that its subsidiaries First Philippine Holdings (ticker FPH) and ABS-CBN (ABS) recorded 41% drop in profits and 10% reduction, respectively.

To shareholders, more of LPZ’s profits usually end up with non-controlling interests. In 2017, 71% of LPZ’s total profits went to the latter.

There was no 2018 outlook on LPZ’s April 17 press release for its 2017 performance.

By December, LPZ had 157 billion in debt, 47.7 billion in cash, and 60.5 billion in book value.

This blog estimates indicated a high uncertainty figure per share of 10 vs. 4.79/share at the time of writing (4/22/2018).

Due to high leverage, some investors may still find it hard to invest in the investment group.

Disclosure: No shares in LPZ

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s