Stock News 2011: ERC resolution paves way for ‘open access’ regime in power

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The Energy Regulatory Commission (ERC) en banc has finally reached a decision which provides for the official declaration of open access or the policy regime in the deregulated electric power industry that will give choice to electricity consumers.

A resolution, according to industry stakeholders, was signed on June 6 and such provides for a six-month transition or until December 26, 2011 for the official kick-off of open access.

Even with the formal declaration and the prescription for a transition phase though, the assessment of the industry players is that the ‘power of choice route for consumers’ may not actually gain traction until the next two years.

“The declaration of open access is just the initial step. When that will bear fruit will be a longer process, we still see a delay of two years,” industry sources noted; adding that one next major step would be crafting the rules on settlements for open access-related transactions.

Basically, the policy will give end-users within the 1.0-megawatt peak demand bracket the leverage to contract for or purchase their electricity needs from preferred suppliers.

That regime in the industry will principally open up to competition the industrial and big-ticket commercial segments of the power utility’s customer base or what has been referred to as the “contestable market”. In the case of the Manila Electric Company (Meralco), this will account for about 27 to 30-percent of its customers.

http://mb.com.ph/node/322123/erc-re

Stock News 2011: WHO report on cellphone radiation

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Based on internet reports, a World Health Organization (WHO) international panel of experts recently concluded that cell phones are “possibly carcinogenic.” Carcinogenic means producing or tending to produce cancer.

The panel was composed of 31 scientists from 14 countries headed by Dr. Jonathan M. Samet, a physician and epidemiologist at the University of Southern California and a member of President Obama’s National Cancer Advisory Board.

The panel did not based its conclusion on any new research that it conducted but only on existing and available studies on the health effects of low levels of radiation emitted by cellphones – which the panel of scientists reviewed.

The phrase “possibly carcinogenic” does not mean cellphones cause cancer. Stated in another way – the phrase means that there is no conclusive scientific evidence linking cellphones with cancer. Be it as is, we, cellphone users should reduce our exposure to cellphone radiation. Like using an earpiece to keep the cellphone away from the head or texting rather than talking over the cellphone. These are simple doable precautionary measure on the use of cellphones.

Not many know that the choice of cellular phone can influence a person’s exposure to cell phone radiation. It does! Different cell phones have different quantity of the so-called “radio frequency” (RF) energy that is absorbed by our bodies.

http://www.mb.com.ph/node/322132/who-report-cellphone-radiation

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Stock News 2011: FLI offering P3-billion bonds

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Filinvest Land Inc. (FLI) reported that its Executive Committee has approved its plan to issue and float via public offering of a five years and three months unsecured fixed-rate peso denominated debt securities (Retail Bonds) worth up to P3 billion.

In a disclosure to the Philippine Stock Exchange, FLI said proceeds from the retail bonds issuance will be used by the corporation to additionally finance capital requirements for 2011.

Issue date is targeted within June 2011, subject to SEC approval. The planned P3 billion retail bonds has been assigned the highest rating of PRS Aaa by Philratings.

Last March, PhilRatings also maintained the highest rating for FLI’s P5 billion bonds, composed of the P500 million bonds (due in 2012) and the P4.5 billion bonds (due in 2014).

PhilRatings said the ratings assigned reflect the strong growth of FLI’s real estate revenues and higher recurring income from the company’s leasing operations; conservative debt position; and financial flexibility.

The rating also reflects the company’s diversified portfolio; established brand name; and favorable industry conditions, the ratings agency said.

In the next five years, PhilRatings said FLI’s forecast hikes in real estate revenues will come from the strong performance of the affordable, middle-income and high-end segments.

http://mb.com.ph/node/322006/fli-offering-p3billion-bond

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Stock News 2011: SMC’s new businesses to propel revenues doubling to P530 billion

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Diversifying giant conglomerate San Miguel Corporation said it is poised for higher growth with its new businesses expected to make up 70 percent of the total revenues in five years.

In a presentation to stockholders, SMC chairman and chief executive officer Eduardo M. Cojuangco Jr. said that the company’s new growth engines were performing well as planned.

For his part, SMC president Ramon S. Ang said the consolidation of Petron Corporation and the firm's power generation businesses will help propel this year's revenues to double to P530 billion.

“With our new businesses, we have more diverse income streams and more paths to grow than ever before. As these segments become larger and their contributions more manifest, we are confident that we will deliver much better value,” Cojuangco said.

He added that favorable demographics, rising disposable incomes, and healthy economic growth all point to compelling near long-term prospects for the company.

For Petron Corporation, he said growth will come from the company’s thrust to reach many areas that still have no access to fuel products. There are also significant opportunities in the production of higher margin petrochemical products, he said.

For power generation, the firm said it is planning to double its capacity over the next five to seven years to meet growing demand and help address a looming power shortage.

Cojuangco said there is also a wealth of opportunities in infrastructure, as there is great demand for better roads and public transportation.

He added that there is also a lot of upside in San Miguel’s traditional food and beverage businesses with the growing affluence of consumers. Its packaging arm, meanwhile, is turning to exports for growth, with more liberal trade regimes in place in the Asia-Pacific.

http://mb.com.ph/articles/321713/smc-s-new-businesses-propel-revenues-doubling-p530-billion

Stock News 2011: Globe strengthens leadership in postpaid

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Globe Telecom further strengthened its leadership in the postpaid segment with double-digit growth in subscriber base and revenues from last year’s levels.

As of end-March 2011, the company’s wireless postpaid base has reached 1.44 million. Subscriber base for mobile telephony was at 1.15 million, up 30% year-on-year. Total wireless postpaid revenues stood at P3.63 billion, 10% higher than last year.

Being the first to launch a suite of customizable and personalized postpaid services in the country, Globe Postpaid is expected to show strong and continued growth over the coming months ahead, as well as widen its lead over competition.

“We are very happy that our strategies and offers are well received by our subscribers. We understand that our customers are unique from one another, so as their needs and means to connect with their friends and families,” said Martha Sazon, Head of Globe Postpaid.

Globe has the most diverse offerings for its postpaid subscribers, led by the most flexible and customizable postpaid plan in the market today, the All New My Super Plan. Following the same principle of product personalization and customization is My Super Surf Plan, the country’s first-ever range of fully-customizable unlimited data plans which provide subscribers with uninterrupted mobile surfing, consumable monthly fees, bonus call and text services and add-ons in a single subscription.

http://mb.com.ph/node/321593/globe-

Stock News 2011: Robinsons seeks comm’l bank license

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Robinsons Bank Corp. will operate as a commercial bank once the Bangko Sentral ng Pilipinas grants it the necessary license.

A KB license will allow RobinsonsBank to offer its clients a wider array of innovative financial products such as foreign letters of credit and other trade instruments and put the bank in an even greater capacity to serve as it aims to be among the country’s top 10 commercial banks.

The Securities and Exchange Commission’s recent approval of the merger between Robinsons Savings Bank and Robinsons Bank Corp. completes the legal and regulatory requirements needed by the BSP to award Robinsons Bank Corp., the surviving commercial bank entity from the merger of the two Gokongwei-owned banks, a KB license.

http://mb.com.ph/node/321434/robin

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Stock News 2011: BDO Leasing expands loan portfolio

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BDO Leasing and Finance, Inc. (BDOLF) is seeking to widen its loan portfolio amid a stable outlook on the economy this year.

At the sidelines of the company’s annual stockholders’ meeting, BDO Leasing president Georgiana Gamboa said they will continue to find the niche markets and support clients whose needs remain unserved by banks.

In particular these are markets that need the Factoring of Receivables and Leasing products.

“Right now our products and services are extended to different provinces and key cities by virtue of the extensive Banco De Oro (BDO) branch network, which are strategically located all over the country,” she said.

Gamboa explained that, ‘because of this, clients are able to enjoy the same products and services wherever they may be. The plan is to further expand our geographical coverage to reach out to more clients.”

http://mb.com.ph/node/321014/bdo-lea