ABS-CBN turns to profit on labor cuts

Friday, April 28, 2006

ABS-CBN turns to profit on labor cuts
By Darwin G. Amojelar, Reporter

ONE-TIME gains made from an employee-reduction program and other production cost cuts helped ABS-CBN Corp. turn to profit in the first quarter of the year.

Addressing the company’s tosckholders, Eugenio Lopez 3rd, ABS-CBN chairman and chief executive officer, said preliminary figures for the first quarter showed the company made a profit of P121 million, a turn around from the P114-million loss registered in the same period last year.

Lopez said the improved performance was due to more judicious spending on production and a lower cost base brought about by last year’s reduction in the company’s head count.

The company has trimmed its manpower by 400 from 1,800 earlier.

He added that license fees generated from the company’s DirectTV boosted income in the first three months of the year.

“Although we are not yet completely out of the woods, 2006 promises to be a turn-around year. Indeed the seeds of recovery are in place, and we intend to nurture these seeds to reach full blossom and bear fruit,” Lopez said.

Randolph T. Estrellado, ABS-CBN vice president for finance, said the company’s revenues, although slightly down from last year, was an improvement compared with the 12-percent drop in the last quarter of 2005.

Lopez added, “We don’t expect revenues to be up this year [due to industry’s weak advertising spending]. Our biggest challenge is to be profitable [even with] flat revenues. If we can do that, then I think our profitability will increase.”

The company’s gross revenues went up 8 percent to P17.047 billion, driven by license fees from DirectTV and continued growth of ABS-CBN Global.

Mario Rosario Santos-Concio, ABS-CBN executive vice president and head of the entertainment group, said the company is eyeing to regain leadership over the prime-time slot by July.

“Our programming is becoming seasonal and a change in program [is planned] perhaps every quarter. We [are] also launching 11 new shows,” she said.

“Our shows [are the] most efficient now because in the past we [were] producing [expensive] shows,” she added.

Last year, ABS-CBN’s audience share averaged 34 percent compared with rival GMA Network’s 45 percent. In prime-time shows, ABS-CBN’s audience share improved to 36 percent in the fourth quarter of 2005 vis-à-vis GMA’s 46 percent, while in metered provinces the Lopez family-controlled broadcasting company maintains the lead.

Lopez also disclosed that the company plans to introduce MYX, an Asian-oriented music channel in California. “It’s an opportunity to go beyond as a Filipino channel in California and it is a beginning to allow the company to even grow more,” he added.

Estrellado said the company is setting aside P1.2 billion for its capital spending program this year. Of this, P600 million to 700 million will be allotted for maintenance and the remaining would go to film rights acquisitions.

Internally generated funds will fund the spending program, he said.

ABS-CBN will amortize its debts in the next three years amounting to P1.5 billion a year.

The company’s obligations reached P5.7 billion last year from P4.1 billion the year before. “Two-thirds of the company’s debt is in US dollar but its hedge in Philippine peso,” Estrellado said.

http://www.manilatimes.net/national/2006/apr/28/
yehey/business/20060428bus7.html

Index declines as market enters consolidation phase

Index declines as market enters consolidation phase

The Philippine Star 04/04/2006

Share prices closed 0.28 percent lower yesterday, continuing to slip back as investors took profits on recent gains, dealers said.

They said the market has entered a consolidation phase, with investors adjusting positions ahead of the Easter holiday break next week.

The composite index shed 6.18 points to 2,189.77 after trading between 2,189.22 and 2,197.27. Volume was 1.13 billion shares worth P939.57 million. Losers beat gainers 55 to 23, with 62 stocks unchanged.

The all-shares index fell 1.65 points to 1,069.36.

While the Easter break is still several days away, "the mood this time of the year is to take cash and stay on the sidelines," said Rommel Macapagal of Westlink Global Equities.

Philippine markets will be closed on April 13 and 14 for the Easter holidays. Trading will resume on April 17.

Accord Capital Equities analyst Lawrence de Leon said that the market was "looking for a more stable base before resuming its upward trek.

"The overall sentiment is still positive," he said.

Bank of the Philippine Islands, the most actively traded stock, was down 50 centavos at P62.

Philippine Long Distance Telephone Co. (PLDT) was steady at P1,925. San Miguel Corp.’s A- and B-shares were unchanged at P60.50 and P81, respectively.

Manila Electric Co. (Meralco) rose on speculation its move to allow power plants other than it suppliers to sell directly to its large customers may boost earnings as electricity use increases.

Equitable PCI Bank fell P2 or 2.7 percent, to P73.

The stock on March 24 rose to its highest close since Feb. 11, 2000, on claims by its third-largest shareholder that an investor wants to buy out the owners of the bank. No formal offer has been made since the shareholder, the Government Service Insurance System, disclosed the information on March 17.

Banco de Oro, which has a standing offer to merge with Equitable PCI, rose P1 or 2.9 percent, to P35, its biggest gain in a month. Banco de Oro, which together with parent SM Investments Corp. owns 34 percent stake of Equitable, has offered to swap 1.6 of its shares for each Equitable share.

Meralco Class A shares, which are reserved for Filipinos, rose 25 centavos, or 1.9 percent, to P13.50. Its Class B shares, which have no ownership restrictions, added 50 centavos, or 2.4 percent, to P21.

The government said over the weekend that it accepted an offer by Meralco to allow its customers who use one megawatt a month to buy their own power, including from state- owned power plants which can sell at cheaper rates. The offer comes ahead of the government’s plan to allow power plants other than Meralco’s suppliers to sell directly to the utility’s customers. – AFP

http://www.philstar.com/philstar/NEWS200604040702.htm

PSE to change index composition

 

this story was taken from www.inq7money.net
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=04&dd=01&file=5





PSE to change index composition
Posted: 3:06 AM | Apr. 01, 2006
Elizabeth L. Sanchez
Inquirer

Published on page B2 of the April 1, 2006 issue of the Philippine Daily Inquirer

A NEW Philippine Stock Exchange index will take effect on April 3, based on the PSE's new criteria using a listed firm's available shares to the public.

As an offshoot of a review of the PSE's 238 listed firms, property firm Empire East Land Holdings Inc., and Manila Mining Corp. were included in the new index, bumping off cement firm Holcim Philippines Inc., and Pilipino Telephone Corp.

A total of 30 companies were chosen to comprise the new index to be dubbed PSEi.

The listed firms passed the PSE's review which tested them against a new set of criteria.

These are: Holding firm Aboitiz Equity Ventures Inc., television network ABS-CBN Broadcasting Corp., conglomerate Ayala Corp. and property arm Ayala Land Inc.,

Sy-controlled Banco de Oro Universal Bank, second largest Bank of the Philippine Islands, property developer Belle Corp., holding firm Benpres Holdings Corp.,

Fixed and mobile phone carrier Digital Telecommunications Phils. Inc., construction giant DMCI Holdings,Inc., real-estate firm Empire East Land Holdings Inc., third largest Equitable PCI Bank Inc.,

Property developer Filinvest Land Inc., power and tollroads firm First Philippine Holdings Corp., mobile phone network Globe Telecom Inc., port operator International Container Terminal, fast food giant Jollibee Foods Corp., gold explorer Lepanto Consolidated Mining Company,

Power distributor Manila Electric Company, Manila Mining Corp., utility firm Manila Water Company Inc., holding firm Megaworld Corp., diversified company Metro Pacific Corp., largest bank Metropolitan Bank & Trust Company,

Oil firm Petron Corp., Philex Mining Corporation, dominant telephone firm Philippine Long Distance Telephone Co., food and beverage giant San Miguel Corporation, holding company SM Investments Corp. and its mall operator SM Prime Holdings Inc.

 

Shares decline 0.6 percent as investors cash in on gains

Shares decline 0.6 percent as investors cash in on gains
03/27 2:22:30 PM

MANILA (AP) - Shares declined Monday as investors cashed in on recent gains and exercised caution over the prospect of further U.S. interest rate hikes.

The benchmark 30-company Philippine Stock Exchange index declined 12.18 points, or 0.6 percent, to 2,195.95, after rising 0.7 percent Friday.

"It's time to take profit as the market rose for most of the last two weeks," said James Lago, an analyst at Westlink Global Equities. The market rose about 5 percent in the previous two weeks.

Dealers said some investors were cautious over the possibility that U.S. interest rates may continue to rise. Higher U.S. interest rates tend to pressure up domestic interest rates, in turn damping interest in local stocks.

Blue chip Ayala Corp., among the most actively traded issues, ended down 0.7 percent at 362.50 pesos, while its unit Bank of the Philippine Islands retreated 1.6 percent to 62.50 pesos.

Philippine Long Distance Telephone Co. was unchanged at 1,880 pesos.

Aboitiz Equity Ventures also remained unchanged at 51 pesos, even after the company disclosed that its 2005 net profit rose 29 percent on year to 3.16 billion pesos (US$62 million) on improved contributions from most of the investment holding company's businesses.

Property developer Megaworld was unchanged at 1.52 pesos as investors waited for more indications whether the company's net profit forecast is attainable.

The company's chairman, Andrew Tan, told reporters at the weekend that Megaworld's net profit should rise around 30 percent this year and revenue increase 25 percent as new projects are launched to meet demand from overseas Filipino workers and the outsourcing industry.

 

http://www.philstar.com/philstar/NEWS_FLASH032720066589_10.htm

 

An emotional changing of the guard at Ayala

this story was taken from www.inq7money.net

URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=04&dd=08&file=4





An emotional changing of the guard at Ayala
Posted: 1:58 AM | Apr. 08, 2006
Elizabeth L. Sanchez
Inquirer

AN EMOTIONAL changing of the guard marked this year's annual meeting of stockholders of Ayala Corp., the Philippines' oldest business house.

Jaime Zobel de Ayala, 71, announced to stockholders his retirement from the company he had helped build over 49 years.

Zobel de Ayala, whom Forbes magazine values at $1.3 billion, was applauded twice during the meeting. The first, for almost half a minute, came after his brief speech. The second was a standing ovation after a film clip that showcased his achievements in the company.

He said in his speech: "As a 172-year-old company, Ayala continues to grow, and will continue to be dynamic and ever faithful to its traditional values and principles, ever conscious of its role in economic development, and its obligation to contribute to the betterment of the quality of life for the Filipino."

"I am presiding over Ayala's annual general meeting for the 23rd and last time," he said. "As I look back on all these years, I reminisce about the decisions I had to make at crucial times. No doubt, I have had my share of triumphs and disappointments but, on the balance, the overall experience has been gratifying and rewarding. It has been an immensely fulfilling professional life."

He dodged questions on what he planned to do during his retirement, saying, "That's my secret."

Shareholders prevailed on him to stay on as chairman emeritus, an honorary position that will allow him to remain as the company's guiding force.

Shareholders saw his retirement as ushering a "new order" led by his sons at the conglomerate.

As widely expected, the board of directors elected Zobel de Ayala's eldest son Jaime Augusto, erstwhile president and chief executive officer, as chairman and chief executive officer.

Younger brother Fernando, erstwhile co-vice chairman and executive managing director, was elected president and chief operating officer.

Former Bank of the Philippine Islands president Xavier Loinaz was elected to fill up the vacancy left by Zobel de Ayala on the seven-member Ayala Corp. board.

Jaime Augusto Zobel de Ayala stressed that no radical changes would be made in the company, but said Ayala Corp. "will continue to reinvent itself and continue to take advantage of opportunities in the country."

Ayala Corp. will explore opportunities in three sectors -- services, such as business process outsourcing, contact centers, healthcare management, finance and administrative work, and human resources; privatization opportunities in power, transmission and distribution and other infrastructure; and investment in specialized funds.

This year, the company is pumping in P40 billion in capital spending for projects, bulk of which will go to the rollout of third-generation, or 3G, services of Globe Telecom Inc. and property projects of Ayala Land Inc. With INQ7.net

 

Philippine stock market 'most overvalued' in Asia -- HSBC

this story was taken from www.inq7money.net
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=04&dd=08&file=5





Philippine stock market 'most overvalued' in Asia -- HSBC
Posted: 1:58 AM | Apr. 08, 2006

XFN-Asia

THE Philippines has the "most overvalued" stock market in Asia, even as the economy is expected to grow at an unimpressive rate of 4.7 percent this year, HSBC said.

The Philippine equities market is pushed up by a few expensive stocks, such as beverage and food conglomerate San Miguel Corp and property developer Ayala Land Inc., HSBC said in its Pan-Asian Equity Strategy report.

However, shares of Philippine utilities and energy companies are the cheapest in the region, it said.

"The Philippines is a surprisingly expensive market, on a forward price-to-earnings ratio of 13.1 times and price-to-book ratio of 1.9 times," HSBC said.

"On our dividend discount model, the Philippines is the most overvalued market in the region," it said.

The bank said the Philippines has always been expensive, with its five-year average price-to-earnings ratio at 13.7 times. With INQ7.net

 

Stock exchange elects new board this Saturday

this story was taken from www.inq7money.net
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=04&dd=08&file=9





Stock exchange elects new board this Saturday
Posted: 2:01 AM | Apr. 08, 2006

Inquirer

THREE groups are vying for control of seven seats reserved for stockbrokers on the board of the Philippine Stock Exchange (PSE) in elections to be held this Saturday, Inquirer sources said.

The exchange is holding its annual general meeting and will elect 15 board members -- seven stockbrokers and eight from the private sector.

Veteran broker Vivian Yuchengco has teamed up with fellow incumbent board member William Ang of Astra Securities Corp., Myron Timothy Papa of Papa Securities, and Francisco Villaroman of Securities Specialists Inc.

A second group, earlier associated with former PSE chairperson Alicia Rita Arroyo, is also expected to get votes from the ATR Kim Eng group and blue chip Philippine Long Distance Telephone Co. (PLDT). These are PSE director and Citiseconline.Com president Conrado Bate, Alejandro Yu of R.S. Lim & Co., and Rodolfo Cruz of HK Securities.

Independent broker candidates are expected to be a "third force" in the elections. These are incumbent director Robert Coyiuto Jr., Eddie Gobing of Lucky Securities, Marita Limlingan of Regina Capital, and Joseph Roxas of Eagle Equities.

Four candidates are being backed by institutions for three seats reserved for independent directors: Anabelle Chua of PLDT, Amor Iliscupidez of blue chip San Miguel Corp., Roy Joseph Rafols to represent the interests of the state-run pension fund Government Service Insurance System, and Robert Atendido for market participants endorsed by the Financial Executives Institute of the Philippines and the Investment Houses Association of the Philippines.

Independent candidates are incumbent chairman Jose Vitug and incumbent directors Cornelio Peralta and Jose Luis Javier.

PSE president Francis Lim is also nominated to continue as president and director. With INQ7.net

New leadership plans changes in PSE trading, merger of floors

Manila Times

Monday, April 10, 2006

New leadership plans changes  in PSE trading, merger of floors

By Cai U. Ordinario, Reporter WITH the elections over, the Philippine Stock Exchange’s (PSE) new set of officers are gearing up for a new trading system this year, and preparing for the merger of the Makati and Ortigas trading floors. Francis Lim, reelected PSE president, said the local bourse will require less than $4 million to implement a new trading system before the year ends. Financing for this effort would come from internally generated funds. “The Exchange is in the process of acquiring a new trading system to replace our almost 15-year-old trading system that will further minimize trading glitches and enable the Exchange to launch new products and services,” Lim said in a speech delivered during the annual stockholders meeting of the PSE last Saturday. The new trading system will be similar to online trading with investors, particularly foreign players, having more access to the actual trading done on the Makati and Ortigas trading floors. The PSE will also “vigorously” study the merger of the two trading floors under one roof at Fort Bonifacio. The property in Fort Bonifacio was donated by the Fort Bonifacio Development Corp. (FBDC) in November 2002. Plans for the Fort Bonifacio lot, however, have yet to be finalized, Lim said. Under the donation contract, the PSE owns the 1,282-square-meter lot for seven years and can build on the land in January 2008. On top of its house-cleaning campaign, the PSE is preparing for congressional deliberations on House Bills 5215 and 4237, which “is counter productive to what we’ve been doing in the stock market,” Lim said. The PSE plans to head to Congress to block the two bills, which separately aim to limit the stock market investments of state-run pension funds, Government Service Insurance System (GSIS) and Social Security System (SSS). “We are moving heaven and earth to get foreign pension funds like CalPERS [California Public Employees Retirement System] to invest in our stock market. If these two bills become law, fund managers and foreign pension funds might use it as the very basis to junk our market,” Lim said. Also on the drawing board is the Exchange’s plan to expand the ownership base of the local bourse through the sale of additional preferred or common shares. The planned demutualization is mandated by the Securities Regulation Code of 2000. Lim assured the Exchange’s stockholders that the local bourse would comply with the rules set by the SRC, as widening the investor base would increase the stock market’s trading volume. He earlier said that the PSE will issue enough additional shares to cover the demutualization. At present, all the brokers in the Exchange own 52 percent of the PSE.

 

Ayala Land to build 2 new BPO campuses

i.t. matters
Monday April 17, 2006 | MANILA, PHILIPPINES

Ayala Land to build 2 new BPO campuses

Ayala Land, Inc., the country’s largest real-estate developer, will initially spend P500 million this year to build two business process outsourcing (BPO) campuses in northern Metro Manila and in Canlubang, Laguna.

 

Ma. Victoria E. Añonuevo, vice-president for corporate business group, said growth in the coming years will be fueled by the full-year operations of its BPO offerings and the sustained strength of its traditional office leasing segment.

 

"The Philippines will remain a strong contender as BPO locator as long as we can give highly qualified call center employees. In the BPO campuses, we are going to add educational and training facilities to supply employees and agents. Our aspiration is to be a BPO haven," she told reporters.

In its annual report, Ayala Land said it expects to grow the leasable area in its portfolio over the next five years with some new buildings to be constructed in areas such as Quezon City and Alabang. One such project is a science and technology park scheduled to be built across the University of the Philippines campus in Quezon City envisioned as a university-based catalyst for technological innovation along the lines of the Stanford-based Silicon Valley corridor.

 

In 2005, the company responded to the demand for office space from the BPO sector by adding over 36,000 square meters of BPO-dedicated leasable area to its inventory with the completion of three build-to-suit buildings for specific clients in the Makati Central Business District and in Sta. Rosa, Laguna. These are PeopleSupport Center, Convergys and InfonXX Building. Meanwhile, construction started on a fourth building in the Bonifacio Global City in Taguig for the Hongkong and Shanghai Banking Corp. (HSBC).

 

Ayala Land President Jaime I. Ayala said 2006 will be a busy year because it will make substantial investments to leverage many opportunities with Ayala Land being a major player in each of the key real- estate segments. Ayala Land has two office product lines: traditional office buildings and build-to-suit BPO buildings. -- R.A.M. Rubio

http://www.itmatters.com.ph/news.php?id=041706a

Foreign buying of stocks up 17.9%

this story was taken from www.inq7money.net
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=04&dd=17&file=5

EXCHANGE EXPECTS FURTHER INCREASES IN COMING MONTHS
Foreign buying of stocks up 17.9%
Posted: 0:28 AM | Apr. 17, 2006
Elizabeth L. Sanchez
Inquirer

Published on Page B6 of the April 17, 2006 issue of the Philippine Daily Inquirer

 

FOREIGN BUYING in the stock market during the first quarter expanded 17.9 percent from its year-ago level, the Philippine Stock Exchange (PSE) said in a statement.

 

Data from the PSE showed that gross foreign stock market buying from January to March reached P91.9 billion from P78 billion in the same period last year.

 

Net foreign buying--or total foreign buying less selling--hit P16.69 billion, 17.8 percent higher than the P14.2-billion in the same three-month period last year.

 

"Net foreign buying increased despite accelerated selling among foreign investors for the first quarter of the year," said PSE president Francis Lim. "From only P63.8 billion a year ago, foreign selling increased by 17.9 percent to P75.2 billion."

 

In March alone, foreign selling accelerated by 60.6 percent to P39.2 billion from P24.2 billion the previous month.

 

Gross foreign buying, on the other hand, climbed to P41.8 billion in March.

 

"Based on the data, one can draw the conclusion that doubts about the stability of Ms Arroyo's government somehow bothered investors, and that explains the increased selling," Lim said. "We at the PSE wanted to avert the selling. That's why we have been repeating our call for a peaceful and orderly resolution of our political problems."

 

Lim also noted promising signs that foreign buying will further increase in the coming months.

 

For instance, net foreign buying during the fourth and last weeks of March exceeded P1 billion a week.

 

"I consider this significant because, during the second and third weeks of March, the stock market suffered a P514-million net foreign selling," Lim said.

Net foreign buying reached P7.2 billion on the third week of February.

Market‘s winning streak seen to continue this week

Market‘s winning streak seen to continue this week
By Zinnia B. Dela Peña
The Philippine Star 04/24/2006

Picking up from where it left off last week, the stock market may continue its winning streak on follow-through buying as investors position for stocks with strong 2006 earnings prospects amid the country’s improved fiscal performance and a brighter outlook for the economy.

Francisco Liboro, president of PCCI Securities, said the market is expected to resume its uptrend this week, with investors’ attention focused on property and mining stocks.

Last week, the composite index gained 39 points or 1.7 percent from last week to close at 2,263, its highest since August 1999. The rise was attributed to better first quarter budget deficit numbers and skyrocketing gold prices.

With prices of gold reaching new record levels, investors snapped up on mining issues including Philex Mining, Lepanto Consolidated, Manila Mining, Apex Mining and Atlas Mining.

Philex is expected to post a net income of between P1 billion and P1.5 billion this year. It has reportedly earned P500 to P600 million in the first quarter this year, already surpassing 2005’s full year net income of P409 million.

Apex’s principal asset – the Masara Gold Mine in the south of Mindanao Island – reportedly has a gold reserve in the range of 500,000 to 600,000 tons, according to the Bureau of Mines and Geosciences. The mine, which ceased production in March 2000, was previously operated as a small-scale underground operation and has a treatment plant with the capacity to process 1,200 tons of ore per day.

Some analysts, however, said surging oil prices could dampen market sentiment. The government has already warned the public about higher crude and refined petroleum prices as oil companies have pronounced plans of successive hikes of as much as P50 centavos/ liter on fuel prices in the next several weeks.

"With the inevitable rise in prices, we won’t be surprised on any upward adjustment in inflation targets by mid-year. This may eventually force the Bangko Sentral ng Pilipinas to adopt a more restrictive interest rate policy in second half of the year," AB Capital Securities said in its weekly market report.

Megaworld Corp., an upscale property development firm owned by businessman Andrew Tan, will list today around 4.51 billion shares that were sold in an offering this month to raise funds for various projects. The company raised P6.22 billion from the offering. Each share was sold for P1.38.

http://www.philstar.com/philstar/NEWS200604240706.htm

Aboitiz to expand power, shipping units

Aboitiz to expand power, shipping units
By Zinnia B. Dela Peña
The Philippine Star 04/24/2006

Listed investment holding company Aboitiz Equity Ventures Inc. (AEVI) is setting aside P2 billion this year for the expansion of its power generation and shipping units, according to a top company official.

AEV president and chief operating officer Jon Ramon Aboitiz said P1 billion each has been earmarked for the continued improvement of its shipping operations and new investments in power generation.

AEV, through Aboitiz Power Corp., has teamed up with SN Power Holding Singapore, to bid for the 360-megawatt Magat Hydroelectric Power Plant in Ramon, Isabela and the Hydroelectric Power Complex consisting of the 100-MW Pantabangan Hydroelectric Power Plant and the 12-MW Masiway Hydroelectric Power Plant both located at Pantabangan, Nueva Ecija.

At least two foreign and two local firms have expressed interest to join the public bidding for Pantabangan while six potential local bidders may vie for Masiway.

These plants are among the assets being sold by the Power Sector Assets and Liabilities Management Corp. (PSALM).

The group is also eyeing to operate a 200-megawatt coal power plant to supply requirements of the Visayan Electric Co.

"There are a lot of potential power developments in Mindanao, requiring an additional 800 to1,000 megawatts of additional power," Aboitiz said.

The Aboitiz Group, through its wholly-owned subsidiary Hedcor Inc., is the pioneer and industry leader in the development, operation, and management of hydropower plants.

Hedcor Inc. is the largest developer of mini hydropower in the Philippines, operating 19 generating facilities in Benguet and Davao with 113 megawatts of total installed capacity.

Funding will come from the P2.2-billion loan facility secured from a group of banks led by Bank of the Philippine Islands.

AEVI needs between P5 billion and P6 billion for the construction of three new plants over the next two or three years. The plants located in the Visayas-Mindanao area are estimated to cost between $300 million and $500 million.

Among these new plants include a 200-megawatt coal-fired plant in Cebu and two hydro power plants in Davao. The two new plants to be set up in Davao will have a combined capacity of 76 megawatts. Construction of the first plant is expected to be completed by 2008 in anticipation of a power shortage in the Visayas and Mindanao.

For the Cebu coal power plant, AEVI has invited Mirant Phils. Corp. and Korean Electric Philippines Co. (KEPCO) to be its partners. The plant is expected to be operational by 2008.

AEVI posted a net income of P3.16 billion last year, up 29 percent from the previous year, mainly due to the strong performance of its power and banking units. Consolidated revenues grew 21 percent to P27 billion.

The 2005 net income translates to earnings per share of P0.65. Earnings before interest, taxes, depreciation and amortization rose ninepercent to P6.36 billion.

AEVI’s power business remained the holding firm’s major driver of growth, contributing P2.12 billion or an increase of 32 percent from the previous year. The generation companies pumped in P1.05 billion or 36 percent higher while distribution utilities contributed P1.07 billion, up 28 percent from 2004.

The company’s banking investments turned in P930 million last year, with Union Bank of the Philippines contributing P911 million or an improvement of 11 percent from the year ago figure of P821 million.

AEVI’s food group also increased its income contribution by 13 percent, turning in P382 million. Although volumes in its flour business were flat, its feeds and swine businesses performed exceptionally well as production efficiencies showed significant improvements.

Meanwhile, the group’s transport business under Aboitiz Transport System Corp. suffered a 79 percent drop in net income last year to P65.7 million from P310.5 million as increased costs offset revenue growth.

AEV to split P2-B capex for transport, power projects

Business Mirror
April 24, 2006

 

AEV to split P2-B capex for transport, power projects
By Honey Madrilejos-Reyes
Correspondent

 

CEBU-based Aboitiz Equity Ventures (AEV) is setting an operating capital expenditure (capex) of P2 billion this year to be spent mostly for its transport and power businesses.

In an interview, AEV president and chief operating officer Jon Ramon Aboitiz said the amount would be equally split between the needs of its two major units.

Aboitiz disclosed plans of its power subsidiary to bid for the hydroelectric-power assets of the state-owned National Power Corp. (Napocor), such as the Masiway and Pantabangan assets. It is also planning to operate a 200-megawatt coal-fired power plant to serve the requirements of its company-owned Visayan Electric Co. (VECO).

 “Aboitiz Power has entered into a joint venture with SN Power of Norway for some of this planned hydro projects,” he said, adding, “The unit is also exploring the potential of Mindanao for new power developments.”

Aboitiz Power’s investments in power generation include hydroelectric and diesel-fired power plants.

It also has investments in a number of utilities located in different parts of the country. Aside from VECO, other companies are Davao Light and Power, Cotabato Light and Power Co., San Fernando Electric Light and Power Co. and Subic Enerzone Corp.

For its transport business, AEV has established the Aboitiz Transport System, considered as the largest land and sea transport and logistics company in the Philippines.

Apart from power and transport, AEV’s core investments also include banking and food manufacturing.

Early this year, AEV secured a P2.2-billion loan with the Bank of the Philippine Islands to finance its expansion programs.

http://www.businessmirror.com.ph/0424/comp01.php

Beverage seen driving URC growth

Manila Bulletin
April 24, 2006

Beverage seen driving URC growth

 

 

By JAMES A. LOYOLA

Universal Robina Corporation is counting on its beverage division, whose products are becoming increasingly popular, to lead the growth in the company’s earnings this fiscal year.

URC president Lance Gokongwei said one of their strategies going forward is to continue growing the non-carbonated beverage segment, along with maximizing asset utilization and expanding URC’s distribution network.

 

"Definitely, the beverage division is the fastest growing segment in URC," he said adding that they will stir up the market even more by introducing three new beverage products to spearhead the growth of this segment.

 

These products are /Bull Fighter/ (an energy drink) /Rush /(a fitness drink) and /Teazz /(a carbonated tea drink). "The soft launch of /Bull Fighter /and /Rush /indicate strong market acceptance," said Gokongwei.

 

URC managed to carve a name for itself in the non-carbonated drink segment following the overwhelming success of its C2 Cool & Clean Green Tea ready-to-drink iced tea brand.

 

The company also has four production lines for its beverage products in the Philippines and one in Vietnam. "We’re hoping to increase our production lines in the Philippines to six this fiscal year," the Gokongwei said.

 

In addition, the company expressed bullishness about the prospects of its C2 brand in Vietnam. He said they have expanded C2 in Vietnam last week and the early signs were positive.

 

"We’re quite confident on the prospects of the product. Vietnamese are tea drinkers, so the transition to this product will be easy," Gokongwei said.

 

Meanwhile, URC is planning to introduce new products in Thailand and focus its entry into the socalled functional segment category.

 

"We’ll be expanding our existing lines of biscuits and candies in Thailand," said Gokongwei. "We will enter the functional segment of the candy category to take advantage of health and wellness shift of the market."

 

In the first quarter of its 2006 fiscal year (September to December 2005), URC posted a net income of P709 million from P550 million in net income during the same period of the previous fiscal year.

 

In terms of earnings before interest, taxes, depreciation and amortization, URC posted P1.96 billion in the first quarter from P1.44 billion in EBITDA the previous year.

http://www.mb.com.ph/BSNS2006042462240.html

Business Mirror
April 26, 2006

RP stocks post biggest fall in 7 weeks

 

PHILIPPINE stocks on Tuesday fell the most in seven weeks on speculation efforts to trim the budget deficit could stall after the government said it may reduce taxes on oil to offset rising fuel prices. Philippine Long Distance Telephone Co. and Ayala Corp. declined.

The Philippine Stock Exchange Index fell 17.93, or 0.8 percent, to 2,232.55 at the noon close in Manila, its biggest drop since March 8.

Finance Secretary Margarito Teves said the government may reduce tariffs on oil imports to soften the impact of rising oil prices on consumers. He also said the government will “explore other options first” before scrapping a value-added tax, or VAT, on oil products. VAT is a bigger levy than the tariff and a key component of the government’s fiscal program.

 “They aren’t totally saying they will not touch the VAT on oil and that is a concern for the market,” said Erick Tan of BPI Asset Management Inc. “There is no definite statement from the government that they won’t do it and that’s causing some of the sell-off.”

The government in 2005 included oil products among the goods and services covered by VAT to help trim the budget deficit. Earlier this year, the government raised VAT to 12 percent from 10 percent as part of its plan to boost revenue.

PLDT fell P5, or 0.3 percent, to P1,985. Globe Telecom Inc., its second-largest phone company, fell P15, or 1.7 percent, to P870.

 “The signal is that the government may backtrack on parts of the fiscal reform,” Tan said. “That isn’t a good signal for investors who bought the story of fiscal reform and improving government finance.”

Ayala Corp. fell P10, or 2.8 percent, to P350, its biggest decline since February 24. Bank of the Philippine Islands fell 50 centavos, or 0.8 percent, to P61.50, its first decline in five days.

Shares worth P2.82 billion (US$454 million) were traded, double the six-month daily average and the biggest since March 31.

Equitable PCI Bank fell P1.50, or 2.1 percent, to P70, its biggest decline in two weeks after smaller rival Banco de Oro said it didn’t make an offer to buy a 12-percent Equitable stake at P92 or P95 share. Banco de Oro was unchanged at P35.50. Bloomberg

http://www.businessmirror.com.ph/0426/comp03.php

Shares bounce back, up by 0.65 percent; peso also up

Philippine Star
April 26, 2006

Shares bounce back, up by 0.65 percent; peso also up
04/26 1:20:26 PM

Stocks closed higher Wednesday, the index moving forward by 14.59 points to 2,247.14. The All-Shares market also closed higher by 10.24 points to 1,388.18.

All of the subindicators were trading in the green with mining and oil the highest gainer, up by 103.79 points.

Volume traded was at 2.17 billion shares worth 2.39 billion pesos. Advancers beat decliners, 61 against 31, with 55 issues unchanged.

At the foreign exchange, the local currency was trading slightly stronger at 51.889 pesos against the US dollar as compared to yesterday's close of 51.900 pesos.

http://www.philstar.com/philstar/NEWS_FLASH042620067205_9.htm

SM Prime says profit may increase by 9% this year

SM Prime says profit may increase by 9% this year
By Rocel C. Felix
The Philippine Star 04/27/2006

SM Prime Holdings Inc., the largest Philippine shopping mall operator, said profit may rise as much as nine percent this year as it opens new outlets.

Net income attributable to shareholders of the company may increase to P5.4 billion from P4.97 billion, president Hans Sy said at the company’s annual meeting yesterday. Profit rose 7.6 percent last year from P4.62 billion.

The company will pay on June 20 a 2005 dividend of 25 centavos a share, compared with 23.3 centavos the year before, vice chairman Jose Cusia said. The dividend will be paid to stockholders of record on May 26.

SM Prime earlier this year said it planned to open as many as six malls in 2006. It opened its 23rd in February and plans to open the Philippines’ biggest shopping center, the 386,000-square meter Mall of Asia, in May.

Mall of Asia, originally scheduled to open at the end of last year, is due to start operations in May. It will have at least P1.7 billion in annual sales, or about 11 percent of the company’s estimated revenue, when fully occupied in 2007, according to the Manila unit of Macquarie Securities.

SM Prime will spend P6.5 billion this year, when it will start building four new malls, vice president Jeffrey Lim said. That compares with P9 billion last year. The company plans to borrow P4 to P5 billion he said.

http://www.philstar.com/philstar/NEWS200604270702.htm

Jollibee expands US operations, to open another branch in LA

this story was taken from www.inq7money.net
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=04&dd=17&file=11


Jollibee expands US operations, to open another branch in LA
Posted: 1:55 AM | Apr. 17, 2006
Elizabeth L. Sanchez
Inquirer

Published on Page B12 of the April 17, 2006 issue of the Philippine Daily Inquirer

 

JOLLIBEE Foods Corp., The country's largest fast food chain, is opening a new store in Beverly Boulevard, Los Angeles next week, said Tommy Y. King, vice president for Jollibee's US operations.

 

Aside from the Beverly Boulevard branch that will open on April 16, Jollibee is also slated to open another store in Panorama City in Southern California by July.

 

Once the stores open, Jollibee will have a total of 11 branches in the United States, mostly in California.

 

Jollibee believes it can reverse the weakness in its operations in the competitive US market.

 

Also, Jollibee is planning on opening a store in China, where it has already gained a foothold through its recently acquired Chinese fast food brand, Yonghe King.

 

According to King, Jollibee has invested between $350,000 to $660,000 on the average, in setting up the store in Los Angeles.

 

Sales in its US stores grew 14.6 percent as of February, and 10 percent in January. One store typically posts sales of roughly $3,000 a day.

 

Jollibee is also studying a plan to put up a store in Las Vegas, and relocate its closed store in Vallejo, California to another site within the city.

 

Jollibee closed the Vallejo store last January.

 

From January to September last year, Jollibee reported a 6 percent growth in net income to P1.18 billion.

 

The Jollibee Group, the largest fast food chain in the country, operates a total of 1,429 stores in the country.

SEC drafts rules on OTC trading

SEC drafts rules on OTC trading
By Zinnia B. Dela Peña
The Philippine Star 04/21/2006

The Securities and Exchange Commission (SEC) has drafted new rules on the trading of securities over-the-counter (OTC) in line with efforts to further develop the domestic capital market.

An OTC market refers to the method of buying and selling securities outside of an established exchange or any alternative trading system (ATS).

Jose P. Aquino, head of the SEC’s Markets and Exchanges Department, said securities eligible to be traded in an OTC market include registered securities, exempt securities under Sections 9 and 10 of the Securities Regulation Code, and securities of public companies.

"With these rules, brokers and dealers would trade securities that may otherwise not qualify for listing or trading in an exchange or alternative trading system," he said.

Under the draft rules, no person is allowed to make, create or operate an OTC market unless such person is a registered broker, dealer or qualified investor. In applying for registration, the applicant shall specifically signify intention to conduct activities in the OTC market.

A broker or dealer in an OTC market is required to maintain adequate financial resources in accordance with the minimum capital adequacy requirements and other capital-related obligations that are required of such broker or dealer by the SEC.

Aquino said a security already being traded in an exchange or an ATS shall not be quoted or traded in an OTC market unless the SEC allows the quoting or trading of such security.

The SEC, recognizing the role of government securities relative to the government’s effort in laying down monetary and fiscal policies, will allow the trading of such securities in an OTC market even if they are already being traded in an exchange or ATS.

In general, the reason a stock is traded over-the-counter is usually because the company is small, making it unable to meet exchange listing requirements. Also known as "unlisted stock", these securities are traded by broker-dealers who negotiate directly with one another over computer networks and by phone.

 

http://www.philstar.com/philstar/NEWS200604210704.htm

Foreign buying in stock mart up 18%

Foreign buying in stock mart up 18%
By Zinnia B. Dela Peña
The Philippine Star 04/17/2006

Foreign buying in the local stock market rose by 17.9 percent to P91.9 billion in the first three months of the year from P77.96 billion a year ago, data from the Philippine Stock Exchange (PSE) showed.

Net foreign buying hit P16.69 billion, or 17.78 percent higher than the P14.17-billion mark a year earlier.

"Net foreign buying increased despite accelerated selling among foreign investors for the first quarter of the year. From only P63.79 billion a year ago, foreign selling increased by 17.9 percent to P75.21 billion," said PSE president and chief executive officer Francis Lim.

In March alone, gross foreign buying went up to P41.75 billion while foreign selling amounted to P39.23 billion from only P24.18 billion the previous month.

"Based on the data, one can draw the inevitable conclusion that doubts about the stability of Mrs. Arroyo’s government somehow bothered investors, and that explains the increased selling," Lim explained.

"We at the PSE wanted to avert the selling. That’s why we have been repeating our call for a peaceful and orderly resolution of our political problems. "We have been making the appeal for the sake not only of the stock market, but for the thousands – if not millions – of Filipinos, whose chances of getting jobs depend on foreign investments."

"The country will either have the good fortune to catch – or the misfortune – to miss this global flow of investments, depending on how we resolve our problems in the political front," Lim pointed out.

The PSE chief, however, is optimistic that foreign buying will increase further in the coming weeks or months, noting that net foreign buying during the fourth and last week of March exceeded P1 billion a week.

"I consider this significant, because during the second and third weeks of March the stock market suffered a P514-million net foreign selling," Lim said.

Net foreign buying amounted to P7.2 billion on the third week of February, or from the 13th to 17th of said month and before reports of an alleged anti-Arroyo coup plot was bared.

"I am convinced that the appetite of foreigners to invest in the local stock market will increase, if we can find a peaceful solution to political problems that confront the country today," Lim further said.

 

http://www.philstar.com/philstar/NEWS200604170702.htm

BPI 1st qtr net profit hits P2B

Manila Bulletin
April 17, 2006

BPI 1st qtr net profit hits P2B

 

 

MANILA (Dow Jones)--Bank of the Philippine Islands , or BPI, the country's second-largest bank by assets, said Monday its preliminary net profit in the first quarter hit P2 billion, up from the year-earlier net profit of P1.6 billion on increased interest and fee-based income.

BPI didn't provide actual figures, but said net interest income jumped 23% on year on a 10% expansion in average asset base and 0.51 percentage point improvement in net interest margin.

 

It added fee-based income also improved 27% on year on sale of foreclosed assets, and gains in its asset management and trust and insurance businesses.

 

In the first quarter of 2005, BPI reported net interest income of P4.52 billion and fee-based income of P2.33 billion.

 

BPI President Aurelio Montinola recently told reporters that the bank expects net profit this year to rise 10% from the P8.1 billion reported in 2005, on account of an anticipated improvement in lending activity.

 

http://www.mb.com.ph/BSNS2006041761624.html

Pure Foods profit up 80%

this story was taken from www.inq7money.net

URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=04&dd=19&file=10





Pure Foods profit up 80%
Posted: 1:48 AM | Apr. 19, 2006

Inquirer

SAN Miguel Pure Foods Co., a unit of beverage and food conglomerate San Miguel Corp., said its consolidated revenue in 2005 exceeded P50 billion, a growth of 11 percent from 2004 level.

The company produces fresh and processed meats, dairy products, vegetable oils, feeds, flour, and poultry.

In a report to the Securities and Exchange Commission, Pure Foods said net income grew 80 percent, led by the growth posted by poultry and feeds businesses as well as the company's flour operations. It gave no absolute amounts.

It said the poultry revenue grew seven percent with favorable supply-demand conditions, and good selling prices.

The feed business posted an 11-percent growth to P13.9 billion driven by a 13- percent growth in sales volumes.

The flour business sustained profitability with a volume growth of two percent last year despite relatively flat industry growth. Revenue rose five percent to P5.3 billion last year.

Purefoods-Hormel Co. Inc. registered double-digit sales volume and revenue growths of 14 percent and 17 percent, respectively, San Miguel Pure Foods said. Operating income fell from the 2004 level because of increased raw material prices and fixed costs, bulk of which were related to plant expansion, it said.

Magnolia Inc. posted P4.2 billion in revenue, up 15 percent from 2004.

Operating profits of Great Food Solutions, a food service unit and operator of the Smokey's franchise, grew more than fourfold from the 2004 level, due to the transfer of commissary operations of Monterey to Great Foods in February.

The number of outlets served increased by 147 to 4,108 in 2005 from 3,961 in 2004. Smokey's in 2005 opened 46 outlets, bringing the total number to 103. With INQ7.net