Stock News 2013: EastWest doubles branch network in 2012

Visayas, Philippines (Photo credit: Andy*Enero)

Gotianun-led East West Banking Corp. doubled its branches to 245 last year from 122 in 2011 amid aggressive expansion efforts, the bank said in a disclosure Wednesday.

The bank opened 123 new stores in 2012 in various locations in Metro Manila, Luzon, Visayas and Mindanao.

"EastWest's commitment to its shareholders was to open new stores around the country at a rapid pace, which it has fervently pursued," the bank said.

"The bank plans to continue with its store expansion and grow its network to at least 350 by 2014."

EastWest saw its net income grow by 12% to P1.36 billion in the nine months to September last year from the same period in 2011, buoyed by trading gains and profits from lending.

http://www.abs-cbnnews.com/business/01/02/13/eastwest-doubles-branch-network-2012

Related articles

• Stock News 2012: Malaysian gaming firm threatens to sue PCSO (investingstocksinphilippines.blogspot.com)
• East West Bank sells P1.5B in deposit notes (business.inquirer.net)
• Tripura opposes direct cash transfer (vancouverdesi.com)
• Filipinos consider good health, money the best gifts for Christmas - SWS (newsinfo.inquirer.net)
• Most Filipinos hopeful for 2013 (rappler.com)
• Signal No.1 up over Visayas, Mindanao (newsinfo.inquirer.net)
• Potential cyclone enters Philippines (newsinfo.inquirer.net)
• Aquino ratings dip in all areas, all classes - SWS (rappler.com)
• East West Bank consolidating two Houston branches, wants to acquire (bizjournals.com)
• GoBankingRates.com Investigates Whether Savings Account Interest Rates Will Finally Rise in 2013 in New Report (prweb.com)

Stock News 2012: Malaysian gaming firm threatens to sue PCSO

Philippine Gaming Management Corp. (PGMC), the local gaming unit of Malaysian conglomerate Berjaya, has accused the state-run Philippine Charity Sweepstakes Office (PCSO) of working relentlessly to bring down the Malaysian-led company.

PGMC legal counsel Jose Bernas accused the PCSO management of favoring a rival local lottery equipment provider at PGMC’s expense.

Bernas cited in particular the PCSO move to allow rival Pacific Online Systems Corp. to enter what it deems to be PGMC’s “exclusive” Luzon territory without any bidding being conducted.

He said the PCSO has been “relentless in its efforts to bring PGMC down, demanding [that we] reduce the rental rates on the lotto equipment we provided PCSO by as much as 50 percent, but giving Pacific Online, our competitor, better deals at our expense.”

All-out legal battle

In such a situation, PGMC said the Bejaya unit was ready to go on an “all-out” legal battle against the government agency.

Bernas accused the PCSO, led by chair Margarita Juico, of putting “in jeopardy” the Malaysian group’s investments through various “illegal measures.”

“We have all the documents to prove our allegations and we are now prepared to go all-out to expose what PCSO has been doing against a foreign investor and its local shareholders. We are doing this after exhausting all means to resolve these issues with the present PCSO,” he said.

PCSO general manager Ferdinand Rojas II explained that the reduction of the rental rates was based on a directive from the Senate blue ribbon committee.

On the “exclusivity” debate, he said the PCSO had its own position on the matter but would leave it to the courts to decide the case.  As the case is now pending in court, he said a discussion on its merits would be sub judice.

Last October, PGMC  filed a court petition to cite the PCSO in contempt for disregarding a writ of preliminary injunction issued in relation to a dispute on lottery operations in Luzon.

An injunction is an extraordinary remedy reserved for special circumstances in which the temporary preservation of the status quo is necessary.

Favored firm

PGMC is wholly owned by listed holding company Berjaya Phils., a unit of Malaysia’s Berjaya Group.

Pacific Online, the company that Bernas accused the PCSO of favoring, is led by businessman Willy Ocier and is the lottery equipment provider for the Visayas-Mindanao territory.

PGMC said that in 1993, it won the bidding for the entire Philippines to provide PCSO with lottery equipment. However, it said the government decided to award the Visayas-Mindanao territory to the losing bidder, now known as Pacific Online. PGMC was given only Luzon as its exclusive territory.

It noted that PGMC’s current contract with PCSO will end in August 2015 while Pacific Online’s contract will expire in March 2013.

Since Pacific Online has been allowed to install at least 600 terminals in Luzon since June, Bernas said the PCSO has effectively awarded Luzon, PGMC’s exclusive area, to Pacific Online and extended the latter’s contract without any bidding.

http://business.inquirer.net/98813/malaysian-gaming-firm-threatens-to-sue-pcso

Related articles

• Makati court asked to cite PCSO officials for contempt (business.inquirer.net)
• PCSO disputes PGMC lotto exclusivity claim in Luzon (business.inquirer.net)
• Japan Loto 6 winning numbers drawn (examiner.com)
• Former PCSO exec in P366M plunder case fails to yield despite arrest warrant (newsinfo.inquirer.net)
• Court told of Arroyo hand in PCSO fund diversion (newsinfo.inquirer.net)
• Ex-PCSO GM spent P338M more than was allowed (newsinfo.inquirer.net)
• Sandiganbayan pressed to cancel passports of ex-PCSO execs (globalnation.inquirer.net)
• Storm signal #1 over 18 provinces (rappler.com)
• Sendong victims get free houses in ‘Berjaya Village’ (globalnation.inquirer.net)
• Super Typhoon Pablo: Pablo now threatening Northern Luzon (cebuislandlive.com)

Stock News 2012: GT Cap power unit mulls IPO

English: Coal-fired power plant near Herakleion, Crete Deutsch: Kohlekraftwerk bei Heraklion, Kreta (Photo credit: Wikipedia)
Two power industry players – a power generator and a transmission service provider – are looking to sell shares to the public as early as next year, company executives said.

The public offering of tycoon George S.K. Ty’s Global Business Power Corp. (GBPC) and a subsidiary of the National Grid Corp. of the Philippines (NGCP) in the local bourse are hinged on expansion plans and completion of existing deals.

“Maybe sometime next year if the market situation warrants it,” GBPC president Arthur Aguilar told reporters.

“As you know we went through a due diligence with (parent company) GT Capital Holdings Inc. We got the governance systems set up already for the public listing,” Aguilar said.

In April, GT Capital went public after a P21.5-billion initial public offering (IPO).

“By [next year] we will have an expansion program that is quite clear already. We are now just formulating it,” Aguilar said.

For instance, the company is still conducting a study for a third coal-fired power plant in Iloilo given increasing demand in the province.

Subsidiary Panay Energy Development Corp. will lead the construction of an 82-megawatt (MW) power plant worth P10 billion.

Furthermore, Aguilar said the firm in looking to expand in electricity-starved Mindanao.

“It is an area of interest and you know they need power there,” Aguilar said, adding that Mindanao needs another 300-400 MW in the next three years.

Late last month, GBPC subsidiary Toledo Power Co. said it will build another 82 MW coal-fired power plant in Cebu that will cater to the mining operations of Carmen Copper Corp.

GBPC is already close to the grid cap in the Visayas given its 633-MW capacity.

“We got to go elsewhere. We still have room for one or two more plants.After that, that is it,” Aguilar said, adding that Luzon is not an option due to big players in the area.

Meanwhile, the NGCP is looking to sell shares to the public as compliance to the requirements of Republic Act 9511 of 2008 that granted the transmission franchise to the company.

“It can be the subsidiary who will do the IPO for NGCP. It does not have to be NGCP directly,” said Joseph Ferdinand Dechavez, senior adviser to NGCP president Henry Sy Jr.

“We are doing it because we have to comply with the requirements of the franchise,” Dechavez said.

Under the law, the country’s sole transmission provider should sell at least 20 percent of its shares to the public within 10 years from the commencement of its operations.

http://www.philstar.com/Article.aspx?articleId=827894&publicationSubCategoryId=66

Related articles

• Reserve power offered to Mindanao, but cost turns off users (newsinfo.inquirer.net)
• NGCP wins TRO against Capitol (newsinfo.inquirer.net)
• Group says conspiracy behind Mindanao power shortage, calls for congressional probe (mindanews.com)
• Red alert for Mindanao power status (mindanews.com)
• Metro Manila power supply normalizes after interruptions (newsinfo.inquirer.net)
• GenSan power situation improves (mindanews.com)
• Solon wants probe on impending power rate hike (business.inquirer.net)
• Where's the renewable energy? (eco-business.com)

Stock News 2012: Philex to build new schools

Philex Mining Corp. and subsidiary Silangan Mindanao Mining Company, Inc. (SMMCI) have entered into an agreement with the Armed Forces of the Philippines’ 52nd Engineering Brigade to address the classroom shortage in the province of Surigao del Norte.

In a statement yesterday, Philex said the agreement signed by the parties stems from another agreement signed by Philex with the AFP’s peace and development arm, the National Development Support Command, late last year.

Under the agreement, classrooms in the town of Placer in the province would be repaired and constructed by the two parties.

Philex said the works should be completed before the opening of classes in June.

Projects in the pipeline include the repairs of six classrooms in Barangay Anislagan, the construction of a two-classroom building in Barangay Boyongan and repair of five classrooms in Barangay Macalaya.

“Education provides the opportunity for our children in Surigao del Norte to follow their dreams and rise above poverty. It is our responsibility to ensure that happens, and we start by addressing the basic problem of classroom shortage,” Philex Mining President and chief operations officer Eulalio B. Austin said.

Philex is developing the 5,184-hectare Silangan project in Surigao del Norte.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=799337

Stock News 2012: 2Go, Cosco Forging Alliance

2Go Group Inc., formerly ATS Consolidated Inc., is forging an alliance with world's largest shipping company Cosco (China Ocean Shipping Co.) Group to support its long term goal to push its logistics business beyond the Philippine shores.

2Go Group’s new chairman Francis Chua revealed this to reporters saying the company has grand plans to further enhance its integrated logistics business in the country and abroad.

“We are getting Cosco chairman Capt. Wei Jaifu as our strategic partner, if not as an equity investor,” Chua said.

He, however, refused to reveal the investment requirement to support the growth plans for the publicly-listed company.

Capt. Wei had planned earlier to undertake an integrated international logistics project in the country in two separate areas – one in Subic for its logistics, shipbuilding and industrial zone components and another in Sangley Point in Cavite City for ship repair and maintenance facilities plus a maritime school. The project was estimated to cost $5 billion. This was, however, put on hold because of the global financial crisis in 2009, but has remained interested with the project. The global financial crisis has adversely affected shipping operations because of the low volume of trade.

According to Chua, 2Go has evolved to become the country’s biggest logistics firm providing end-to-end solutions not just for the movement of goods and passengers but inventory, warehousing and distribution.

“We will do everything for you. This is now the direction of the company to come up with better service for our clients,” Chua said noting it has ships, trucks, port infrastructure and network nationwide to move goods anywhere in the country.

2Go is now the country’s biggest shipping operator with 31 vessels.

With Cosco, he said, it would be easier for the company to expand into the international market in the future.

“With Cosco alliance, we could reach the international market. We can deliver from Mindanao to China and vice versa,” he said.
Chua said this plan is in support of the growing trade here and in the international market.

http://www.mb.com.ph/node/357169/2go-co

Stock News 2012: Philex posts record income

Photo of Manny (Photo credit: Wikipedia)Philex Mining Corp. said its net earnings surged to a record P5.77 billion last year, up 46 percent from P3.96 billion in 2010, on increased metal production and unprecedented global metal prices.

Core net income likewise hit an all-time high of P5.57 billion, 34 percent higher than a year ago. Operating revenues also reached a historic high of P16.13 billion or an increase of 20 percent as gold continued its 11-year bull run in the world market.

Revenues from gold operations climbed 29 percent to P9.29 billion with prices rising 26 percent to an average of $1,536 per ounce.

Revenues from copper production, on the other hand, amounted to P6.09 billion, six percent more than the P5.7 billion recorded a year earlier.

Copper price per pound also improved from $3.63 in 2010 to $3.70 in 2011.

Ore milled slightly went up to 9.49 million tons from 9.36 million tons. The company registered a seven-percent growth in volume of copper to 37.955 million pounds and a five percent rise in gold to 140,113 ounces.

“Philex Mining will continue to lead and will focus on exploring additional revenue streams to maximize the opportunities presented by the world’s growing requirements for gold and copper,” said Manuel V. Pangilinan, chairman of Philex.

Pangilinan declined to give an income guidance for the year but said he expects “global demand and supply for metals are expected to be fundamentally strong throughout 2012.”

For this year, the company has budgeted P2.4 billion for its capital expenditures this year, P1 billion of which will go to the exploration and development of the Silangan mine, which contains the combined Boyongan-Bayugo deposit located at the Surigao mineral district in Mindanao.

Pangilinan said the company continues to scout for new acquisitions given its strong balance sheet. “We’re looking at a broad range of opportunities to see continued growth,” he said.

When asked whether Philex is setting it sights on Apex Mining Corp., Pangilinan said all firms engaged in gold and copper operations are on the company’s radar.

“Our main focus shall continue to be on gold and copper. Anything that will come into operations before the Silangan mine, we are interested,” Pangilinan said.

Pangilinan said the company is also interested in acquiring a stake in Manila Mining Corp. if given a choice.

http://www.philstar.com/Article.aspx?articleId=782500&publicationSubCategoryId=66

Stock News 2012: Eastern Petroleum to spend P500 million on 15 new stations

Skyline of Cebu City (Photo credit: Wikipedia)
astern Petroleum Corp. (EPC), one of the most aggressive independent oil players in the country, will spend about P500 million to build 15 new retail stations in 2012, a top company official said.

EPC chairman and CEO Fernando Martinez said as of end-2011, the company has 35 stations and the additional stations will bring its total retail network to 50 by yearend.

He said the company is also studying the possibility of putting up two more oil depots next year in Cebu and Mindanao.

“We already acquired a site in Gen. Santos City in Mindanao to augment the requirements of our GenSan mega stations. The terminal depots will have a capacity of four million liters each,” he said.

Meanwhile, Martinez projected that their sales revenue would hit P3.5 billion to P4 billion this year, higher than last year although lower than the earlier target of P5 billion, due to the softening economy and demand in the second half of the year.

“We are affected by a slowdown in the second half. Still it’s a good year of double-digit growth,” he said.

He, however, said their net income this year will be better than last year.

“With better prices and more stations, we expect higher income for 2012,” he said

http://www.philstar.com/Article.aspx?articleId=764933&publicationSubCategoryId=66

Stock News 2011: Gerry's Grill pushes robust expansion

Image via Wikipedia
Gerry’s Grill has continued to expand in Mindanao as it gears up to bring up its total number of restaurants to 47 by end of this year and bolster its position as the market leader among players in the fast-casual dining category.

Gerry Apolinario, chief executive officer of Prime Pacific Grill, Inc., said this after opening its third branch in Cagayan de Oro at Robinson Place. Earlier, the company opened a few weeks after Gerry’s opening at the Abreeza Mall in Davao City. The popular grill’s first branch in the region is located at Gaisano Mall.

“The opening of a branch in Cagayan de Oro has been in the pipeline for some time now. With the opening of Robinson’s Mall the time has come,” says Apolinario.

Gerry’s Cagayan brings the total number of newly opened branches in Q3 of 2011 to four. The grill restaurant also opened at Level 3, Greenbelt 3 at the Ayala Center in Makati City; and Building 4 Mexico Wing of SM City in Pampanga. Robinson’s Place is set to open this month.

Cost of investment for a branch is pegged between P12 million and P15 million. Three more branches are set to open in Q4. “In October we will open in Laoag, Nuvali at Sta. Rosa, Laguna; and Zamboanga,” reveals Apolinario.

Other Gerry’s Grill branches outside Manila are located in major travel destinations – Cebu, Baguio, Bohol, Tacloban, and Boracay.

Gerry’s first Asian branch at the upscale Marina Bay Sands in Singapore continues to be number one in patronage among the 25 international chains at the food court. Gerry’s was handpicked by executives of Koufu, a food conglomerate which operates several food courts in major lifestyle destinations in Singapore.

http://mb.com.ph/articles/333338/gerrys-grill-pushes-robust-expansion

Stock News 2011: Pepsi-Cola set to build 2 biomass facilities

A three-way goal intersecting on electricity cost reduction, addressing power supply quality, and abating climate change risks has prompted Pepsi-Cola Products Philippines Inc. to construct its own biomass facilities, two of which are targeted for commissioning simultaneously around May or June this year.

The first two projects, according to PCPPI Commercial Director Gabby Gabinete, which will service the electricity needs of the soda company are sited in Rosario, La Union in Luzon and Cagayan de Oro in Mindanao.

“The project is expected to significantly reduce the company’s energy costs, address the power shortage in the country and increasing cost of fuel, and at the same time, promote a carbon emission-free business environment,” the company has noted further in a statement.

The La Union facility, he said, would be able to yield 1.0-megawatt capacity for the company’s use and it commands an investment of $1.4 million.

http://www.mb.com.ph/node/298389/pep

Stock News 2010: Phoenix Petroleum slates P1.5-B expansion

Image via Wikipedia
Publicly-listed Phoenix Petroleum Philippines Inc. has earmarked P1.5 billion capital expenditures (capex) for next year, mainly to bankroll its expansion projects.

It was gathered from company officials that this will fund the company’s pipelined retail portfolio expansion and the construction of additional depots in Bacolod and Cagayan de Oro.

The company said it will concentrate shoring up its handling facilities in Visayas and Mindanao; while Luzon may yet be at standstill because its Calaca depot’s capacity at 50 million liters can already be classified “immense” and will be enough to supply its expanding market in Luzon.

As far as the targeted number of stations in Luzon is concerned, the company has not given any specific number but it indicated that expansions will be done in various parts of the country.

In a disclosure to the Philippine Stock Exchange (PSE), the oil firm said this (capex) will be allotted for the “expansion of the company’s operations such as but not limited to retail network and depot facilities as well as supply operations.”

http://www.mb.com.ph/node/291341/phoenix-petroleum-

Stock News 2010: ERC orders NPC to refund customers P0.04/kWh

Image via Wikipedia
MANILA, Philippines – Luzon electricity consumers can only expect a minimal reduction of P0.04 per kilowatt hour (kWh) from the foreign exchange refund ordered on National Power Corporation (NPC), the Energy Regulatory Commission (ERC) has clarified.

While the forex gain reduction approved was at P0.34 per kilowatt hour (kWh), this has to be offset from the last adjustment of P0.31 per kWh which has lapsed in November billing cycle.

“The overall reduction in the forex component on NPC charges will just be P0.04 per kWh because that has to be reckoned with its time-of-use (TOU) which was set to even out from the last currency exchange rate adjustment,” ERC executive director Francis Saturnino Juan has noted.

The foreign exchange gains logged by state-run NPC has merited an order from the regulatory body for it to refund P6.6 billion worth of over-collections to Luzon customers. This could have translated to P0.34 per kWh if without the offsetting mechanism.

Visayas and Mindanao consumers will similarly benefit from the rate decline.

http://www.mb.com.ph/node/290794/erc-order