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Friday, February 26, 2010

Stock News 2010: Robinsons Land a driving force in Cebu

Capitol building of the Province of Cebu, loca...Image via WikipediaMANILA, Philippines The strong domestic retail market continues to paved the way for more property developments and expansion not only in major urban centers like Metro Manila but throughout the country. The expansion is being followed rapidly by BPO and call center companies as they moved to the Next Wave Cities.
Cebu has taken advantage of these developments and has landed itself as the premier destination for BPO and call center companies because of the presence of the correct mix of critical infrastructure, ample and appropriate human resources and lower cost. Cebu was selected as one of the highest-ranking BPO destinations in Asia due to high literacy and labor pool, fiscal incentives and competitiveness.
Robinsons Cybergate Cebu, Robinsons Land Corporation’s latest Cebu project that integrates BPO office spaces in its newest shopping and lifestyle mall development has reinforce the company stature as a driving force in the industry and the main developer of BPO sites that offers a total live-work-play environment.
For inquiries on Robinsons Cybergate Cebu office space leasing, call (02) 395-2177; (032) 255-5590 or email at office.buildings@-robinsonsland.com
http://www.robinsonsoffices.com/news.html
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Tuesday, February 23, 2010

Stock News 2010: Meralco to pay dividends of 50% of core net

MeralcoImage via WikipediaMANILA, Philippines - Manila Electric Co., the Philippines' largest power distributor, said on Tuesday its board of directors has approved a dividend payout equivalent to 50% of its core earnings compared with about 30% previously.
Meralco also said it was optimistic its core net income this year would be higher than 2009, but declined to give a specific forecast.
"Moving forward, it's better to have a consistent dividend policy," said Rafael Andrada, company treasurer. He added there was no formal policy previously though the company's prior cash dividends were around 30%.
Company chairman Manuel Lopez said in a statement the regular dividends could be supplemented by special dividends on a look-back basis.
Meralco reported net income of P6 billion in 2009, up 114% from 2008.
Core net income -- which takes out the effect of foreign exchange gains or losses, mark-to-market adjustments and provisions for possible refunds to customers -- climbed to P7 billion in 2009 from P2.61 billion a year earlier.
Manila Electric is partly owned by holding firm Metro Pacific Investments Corp. and its affiliate Pilipino Telephone Corp., and food-to-power conglomerate San Miguel Corp.
http://www.abs-cbnnews.com/business/02/23/10/meralco-pay-dividends-50-core-net
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Stock News 2010: Meralco profits more than double due to PBR scheme

Household electric meter, USAImage via WikipediaPROFITS OF Manila Electric Co. (Meralco), the country’s largest power utility, more than doubled last year following an increase in distribution rates.
In a report to the stock exchange, Meralco said consolidated profits went up by 114% to P6 billion or P5.42 per share, from the prior year’s P2.8 billion.
Meralco said this was “attributable mainly to a slightly higher volume of energy sold and to an adjustment in distribution rates” implemented in May last year. The P0.257 per kilowatt-hour (kWh) hike in distribution charges came a month after the utility was allowed by the Energy Regulatory Commission (ERC) to adopt the performance-based regulation (PBR) scheme, retiring the eight-decade-old return-on-rate-base scheme.
The shift to the more profitable PBR coincided with the entry of new shareholders -- Philippine Long Distance Telephone (PLDT) Co. and Metro Pacific Investments Corp. as well as San Miguel Corp.
Under PBR, the electric utility may increase rates by meeting pre-set performance incentive schemes which is supposed to involve rewards and penalties that will force utilities to become more efficient. The previous cost-plus scheme pegged rates on historical costs plus a reasonable rate of return.
The company’s consolidated core net income, which excludes one-time exceptional charges, grew by 169% to P7 billion from P2.6 billion in 2008. Meralco has a policy of distributing half of core profits as dividends.
Consolidated revenues, which is 97% accounted for by electricity sales, dipped 3.6% due to an average decrease of P0.69/kWh in generation and transmission charges for 2009. This was, however, partially offset by an increase in power consumption and the higher distribution charge.
The May 2009 rate hike also pushed the company’s free cash flow up to P18.8 billion from just P500 million in 2008.
Meralco managed to pare down debts by P19.6 billion last year and refunded P1.8 billion to customers. The utility ended 2009 with a gross debt balance of P20.7 billion.
Manuel M. Lopez, company chairman, said 2009 saw “outstanding results” in profits, cash flows, debt profile and operating efficiency.
Meralco, together with 65%-owned subsidiary Clark Electric Distribution Corp., sold 27,516 gigawatt-hours last year, a 1.7% growth.
The system loss rate stood at 8.61%, below the cap of 9.5% of total output set by the ERC. This is a measure of how much power is lost in the distribution system from pilferage as well as technical limitations.
Analyst Fernando Y. Roxas of Eagle Equities, Inc. said it may be difficult for Meralco to top the 2009 performance this year.
“It’s a little better than expected, although it’s actually too high.
Utilities are not expected to grow this fast, except due to one-off gains. It might be hard for them to repeat the same level of growth this year,” Mr. Roxas said in a phone interview.
Mr. Roxas also said the recent Commission on Audit report on Meralco, which found about P7 billion in excess revenues for 2004 and 2007, may affect investor sentiment on the company.
Mr. Lopez, however, said in Meralco’s disclosure that the utility would not “hesitate to challenge any judgment and speculations on overcharging, which may raise undue public expectation of a refund.”
Analyst Astro C. del Castillo, managing director of First Grade Holdings, Inc., said Meralco’s 2009 performance reflected the company’s efficiency.
“It’s basically the performance of the company catching up with the new management. Despite the boardroom battles we’ve seen last year, the company was nevertheless expected to be efficient,” Mr. del Castillo said in a phone interview.
National Association of Electricity Consumers for Reform President Pete Ilagan said the profit increase of Meralco last year was “unreasonable” and came “at the expense of consumers.”
“They are now becoming very profit-oriented which is not in keeping with the principles of a public utility. They should immediately file for a rate reduction with the ERC,” Mr. Ilagan said in a phone interview.
From a P350-million net loss in 2005, Meralco posted P3.5 billion in earnings for 2006. This grew to P3.8 billion in 2007 and declined to P2.8 billion the year after due to regulators’ decision to disallow the recovery of generation and transmission charges.
Meralco shares went up by 1.84% to P163.00 apiece yesterday. The stock hit a record high of P302.50 last year amid the scramble for control between the PLDT group and San Miguel.
The Lopezes and PLDT have an alliance to fend off any hostile takeover.
Mediaquest Holdings, Inc., a subsidiary of the Beneficial Trust Fund of PLDT, has a minority stake in BusinessWorld.
Jose Bimbo F. Santos
February 23, 2010
http://www.bworld.com.ph/weekender/content.php?id=6780
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Thursday, February 11, 2010

Stock News 2010: RLC rolling out 11 new residential projects

Ortigas CenterImage via WikipediaMANILA, Philippines - Robinsons Land Corp. (RLC), the property development arm of Gokongwei holding firm JG Summit Holdings Inc., is rolling out 11 new residential projects to fill in the strong demand for low-to middle-income housing.
In a filing with securities regulators, RLC said it is awaiting the issuance of a license to sell a total of 5,008 housing units covering 11 new projects.
These projects are Monte Del Sol, Costa Verde, Forest Parkhomes North, Hanalei Heights , Brighton Parkplace North, Montclair Highlands , Sitio Andalucia, St. Bernice Estates, Nizanta Gardens , Vimana Verde Residences and Grand Tierra.
RLC said it plans to develop at least three new housing projects a year. To further expand its landbank and geographic base, the company is in various stages of negotiations for the acquisition of approximately 203 hectares in key regional cities throughout the country.
For its residential buildings division, RLC said it plans to build at least three new projects annually. As of end-September 2009, RLC had a portfolio of 29 residential condominium projects located in Metro Manila and Cebu, of which 16 had been completed and 13 projects under various stages of development.
“The company’s business plan for its residential buildings division is to develop new projects in response to actual and anticipated market demand.
The company believes that the potential for growth is in the affordable to middle-cost high-rise condominium developments and in the middle-cost to high-end horizontal residential segments of the market,” RLC said.
For its commercial center division, RLC had 10 new shopping malls in the planning and development stage for completion in the next two to three years to sustain its growth momentum.
For its fiscal year ending September 2009, RLC had opened five malls: Pulilan, Bulacan; Tagaytay; Davao; Tacloban and Gen. Santos City and a redeveloped mall in Tarlac City. It currently operates 26 shopping malls, comprising six malls in Metro Manila and 20 malls in other urban areas throughout the Philippines, with a gross floor area of approximately 1.43 million square meters.
The commercial centers division’s main revenue stream is derived from the lease of commercial spaces. Historically, revenues from lease rentals have been a steady source of operating cash flow for the company.
RLC expects that the revenues and operating cash flow generated by the commercial centers business shall continue to be the driver for the company’s growth in the future.
Zinnia B. Dela Peña
February 11, 2010
http://208.184.76.175/Article.aspx?articleid=548410
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Stock News 2010: Meralco sees higher energy sales in 2010

MeralcoImage via WikipediaMANILA, Philippines - Manila Electric Co. (Meralco) is expecting its energy sales to bounce back to pre-crisis levels this year, given its strong performance last month.
"Based on indications from our January sales, we have recovered to 2008 levels for all customer segments," Meralco president Jose de Jesus told reporters on Thursday. The company is set to release its official figures at the end of the month.
"Our sales almost correlates with the growth in the economy. There are signs that it could become positive," he added.
With this development, Meralco head for utility economics Ivanna dela Pena said they may raise their flat growth sales forecast for 2009. The company had projected a 3% growth for 2010.
"We would need to look at these new figures. We have to take into account the impact of El Nino because that is also a factor for our growth projection," dela Pena said.
http://www.abs-cbnnews.com/business/02/11/10/meralco-sees-higher-energy-sales-year
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Thursday, February 4, 2010

Stock News 2010: Globe Telecom declares P40/share cash dividend

LogoImage via WikipediaMANILA, Philippines - Globe Telecom Inc., the Philippines' second-largest telecommunications firm, has declared a cash dividend of P40 per common share.
The first semi-annual cash dividend worth P5.3 billion is 42% of the Ayala-led firm's 2009 net income. Globe Telecom shareholders of record as of February 19 will receive the cash dividend on March 15.
The move is in line with Globe Telecom's new policy of distributing between 75% to 90% of the company's profits in the previous year.
"It has been always been our aim to provide superior returns to our shareholders and this first semi-annual cash dividend shows our commitment to achieving this vision," Globe Telecom president and chief executive officer Ernest Cu said in a statement released Thursday.
"In addition to generating good returns, the increase in regular payout will also help ensure that our debt-to-equity ratios stay at optimum levels," he added.
Globe Telecom reported an 11% rise in profits last year to P12.6 billion on non-recurring gains in the first half of 2009. Core net income, on the other hand, increased by 2% to P12 billion.
http://www.abs-cbnnews.com/business/02/04/10/globe-telecom-declares-p40share-cash-dividend
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