First Pacific Company Limited

First Pacific said turnover rose 6% in the first half, while contribution from operations declined 2% and recurring profit declined 1%, both in U.S. dollars. John Ryan said recurring profit was still the second-highest in the company’s 45-year history, and the interim distribution remained HKD 0.03 per share. On the company’s balance sheet, he cited an interest cover ratio of 4.8x, blended interest cost of about 4.5%, average maturity of 3.4 years, and little change in gross debt and net debt. At the operating-company level, management highlighted Indofood core profit up 7%, ICBP sales expected to rise as much as 7% for the full year with an EBIT margin of 20% to 22%, PLDT service revenues and EBITDA at record highs with positive free cash flow, Maya profit up to PHP 559 million from PHP 406 million, PLP core profit down 26%, and Philex Padcal revenue down 9% but core profit up 56%. Forward-looking commentary included ICBP’s full-year sales growth of as much as 7%, PLDT expected to deliver consecutive record highs in service revenues and EBITDA, and PacificLight’s new hydrogen-ready plant targeted for commercial operation around the middle of 2029.

John Ryan framed the quarter as a strong period for the group despite currency headwinds, emphasizing that First Pacific’s recurring profit remained near record levels even with weaker peso and rupiah. He repeatedly pointed to record performance at key subsidiaries, especially Indofood, MPIC and PLDT, and said the group continues to look undervalued relative to the value of its assets. His tone was upbeat and comparative, with several comments stressing that the portfolio’s underlying businesses are still growing and that the medium-term outlook remains positive.

Joseph Ng said the company is not rushing its $350 million bond refinancing due in September 2027, and is evaluating both bond-market and bank-market options while watching volatile rates and macro conditions. He said headquarters has no plan to take on new debt and that leverage remains stable. On expenses, he attributed the rise in other expenses to provisions for long-term incentive expenses at headquarters, noting that 2025 only reflected about half a month of provision because the mid-cycle incentive scheme started in June 2025, whereas 2026 reflects six months. On PLP, he said project cost is around USD 900 million to USD 1.2 billion, equity requirements are around USD 450 million, First Pacific’s share is roughly USD 150 million, and the reported USD 44 million to USD 45 million cash out in the first half was mostly for that equity contribution. He also said the Shell gas force majeure issue has been manageable and the financial impact is not as severe as initially feared.

Analysts focused on the rise in head-office expenses, the refinancing of the 2027 bond, PLP’s funding and ramp-up, gas supply issues with Shell, Meralco’s distribution-loss controversy, Indofood’s cash balance and payout ratio, Maya’s IPO timing, and whether there could be more Pinehill impairments. Management said the expense increase was mainly due to long-term incentive accruals, the refinancing is being actively explored but not urgent, and PLP’s plant is too early in development to say how quickly it will ramp after 2029. They said Shell’s force majeure situation is being managed through ongoing discussions and alternative sourcing, Meralco’s system-loss issue remains unresolved and lacks firm dates, Indofood has no specific plan for its cash and is conservative on payouts, Maya’s listing is expected at some stage but not soon, and no further Pinehill impairment is expected because the business is performing well and the Nigerian currency has been steadier.