First Pacific Company Limited

First Pacific reported turnover up 6% in the first half of 2026, while contribution from operations was down 2% and recurring profit was down 1% year on year. Management said the weaker Indonesian rupiah and Philippine peso, down 5% and 6% on average, weighed on translated results; the company’s recurring profit was still the second highest in its history. The interim distribution to shareholders was unchanged at HKD 0.03 per share. On leverage, the interest cover ratio was 4.8x at June end, blended interest cost was about 4.5%, average maturity was 3.4 years, and gross/net debt were described as little changed. Looking ahead, Indofood’s ICBP sees full-year sales rising as much as 7% with EBIT margin of 20% to 22%; PLDT expects another year of consecutive record highs in service revenue and EBITDA; and PLP’s hydrogen-ready plant is expected to begin commercial operations around the middle of 2029.

John Ryan framed the quarter as resilient, emphasizing that several operating companies delivered record highs even with weaker currencies. He repeatedly highlighted the strength of Indofood, MPIC and PLDT, and said First Pacific remains undervalued relative to the underlying businesses. His tone was constructive and upbeat, while still acknowledging that exchange-rate weakness creates an ongoing drag on reported U.S.-dollar earnings.

Joseph Ng focused on balance-sheet management and capital allocation. He said the $350 million bond maturing in September 2027 is being refinanced thoughtfully, with management monitoring markets and discussing options with banks and bond investors, and he stressed there is no rush and no plan to take on new debt at headquarters. He also explained that the rise in other expenses was mainly due to higher accruals for long-term incentive costs, since 2025 only had a partial-period provision while 2026 included six months. On PLP, he said project cost is around USD 1.2 billion, equity needs are about USD 450 million, First Pacific’s share is roughly USD 150 million, and the first-half cash out of about $44 million to $45 million was for that equity contribution; he added that dividends continue to be received from PLP as well.

Analysts pressed management on the spike in head-office other expenses, bond refinancing plans, PLP financing and ramp-up timing, Shell gas supply/force majeure issues, Meralco’s exposure to possible system-loss charge changes, Indofood’s cash balance and payout ratio, Maya’s IPO timing and valuation, and possible impairment risk on Pinehill. Management said the expense increase was mainly long-term incentive accruals, the refinancing is still being assessed across bond and bank markets, and PLP’s gas-supply issue with Shell is being managed commercially with the impact not as severe as initially feared. On Maya, management said it is not directly comparable with GCash because Maya’s strength is its fintech/banking platform, and they still intend to list it at some stage in the not-too-distant future. On Pinehill/Nigeria, they said there is no real likelihood of further impairment because the business is performing well and the naira has not recently weakened further.