Stock News 2012: Philodrill sees P2B profit

The Terra Nova Oil Project (Photo credit: Wikipedia)

Exploration firm The Philodrill Corp. is targeting to breach the P2-billion net income mark in two to three years’ time as it anticipates higher revenues from the doubling of oil production at the Galoc oil field in offshore Palawan.

Philodrill executive vice president Francisco Navarro said the second phase of development for the Galoc field would not only extend the life of the field to 2020, but also more than double the daily oil production to anywhere between 10,000 and 12,000 barrels of oil a day (bopd) from the current 5,000 bopd.

For the second leg of development, the members of the consortium operating Service Contract 14C-1, which operates the Galoc field, are investing a total of $188 million (about P7.5 billion). Of the amount, Philodrill is spending a little over 7 percent, or $13.16 million (or about P526 million).

“We have funding already available. We’re not borrowing. The drawing down of funds has already begun because the long lead items needed for the drilling are being acquired earlier. We expect drilling to start by the third quarter of next year,” Navarro said.

The Phase II development for the Galoc oil field involves the drilling of two subsea wells, which will be tied back to the existing floating production, storage and offloading (FPSO) facility. There is also an option to drill a third well on the Galoc North prospect following the completion of the two development wells.

For 2012, Navarro disclosed that Philodrill expected its net income to hit only P300 million to P400 million, about 60 percent lower than the P1.04 billion in net profit it posted in 2011. The decline was attributed largely to the shut-down of the Galoc oil field. Field operator Galoc Production Co. had shut down its operations at the Palawan oil field late last year for an upgrading work and was able to resume production only in the first week of April.

Philodrill, however, was expected to further increase its income next year to about P1 billion, which it might double by either 2014 or 2015 with the new wells at the Galoc already producing at optimum levels, Navarro added.

http://business.inquirer.net/98499/philodrill-sees-p2b-profit

Related articles

• Philex Petroleum reports P132M loss (business.inquirer.net)
• Stock News 2012: Nat'l Bookstore buys into Vulcan (investingstocksinphilippines.blogspot.com)
• Mines grad capturing oil-gas emissions (denverpost.com)
• Tullow expects Jubilee production to exceed 90,000 barrels of oil per day end of 2012 (ghanabusinessnews.com)
• The Sefton Lies Continue Unabated. Suspension Needed! (brokermandaniel.com)
• Nostra Terra Oil & Gas. It's all good news! (brokermandaniel.com)
• U.S. oil giant Chevron reports drop in profits (panarmenian.net)
• Pacific Rubiales Provides operational update to close out its 2012 exploration and development activities (sacbee.com)
• Pacific Rubiales Provides operational update to close out its 2012 exploration and development activities (sys-con.com)
• Four Questions to Help You Find a Diamond in the Rough (axialmarket.com)

Stock News 2012: Robinsons Magnolia Is ‘Green Mall’

Fotoloco Smart Parenting @ Robinsons Magnolia Grids 245 (Photo credit: FOTOLOCO!)

Robinsons Magnolia Mall, which was opened recently, has been certified as a green infrastructure by the local government of Quezon City, making it the “First Green Mall Building” in the country’s most populous city.

In a statement, the Gokongwei-led Robinsons Land Corp. said the four-level retail complex was awarded the certificate in ceremonies in City Hall. It was found to have strictly adhered to the stringent standards set under the city government’s Green Building Ordinance of 2009, which requires the design, construction or retrofitting of building, other structures and movable properties to meet minimum standards of a green infrastructure.

The awarding of the green building certification now makes the Robinsons Magnolia Mall, located along the bustling corner of Aurora Boulevard and Hemady Street, a showcase of sustainable development practices.

According to Arlene G. Magtibay, Robinsons Malls’ General Manager, “We are very glad that Robinsons Magnolia has been certified as Quezon City’s first Green Mall Building.  We have always been concerned that our developments work with and not against the environment, and we are happy that the QC government shares the same vision and has recognized our efforts towards this common goal.”

Magtibay said that RLC’s 32nd mall was installed with skylight and glass curtains that allow natural lighting, a move that is expected to rake in huge energy savings for the company.

To further reduce its carbon footprint, Robinsons Magnolia Mall used the more energy efficient colored LED (light emitting diode) light fixtures for the façade.

Compared with normal high wattage metal halide lamps, the LED lighting saves 50 percent in energy consumption.

In the interior, the mall resorted to high efficient light fixtures that saves energy by 30 percent.

Robinsons Magnolia likewise treats the wastewater coming from its sewage treatment plant (STP) and recycles the wastewater for use in cleaning, flushing toilets and irrigation.  It has installed rainwater collectors which help reduce its usage of fresh water.

http://www.mb.com.ph/articles/384175/robinsons-magnolia-is-green-mall#.UMKGS-Smj3w

Related articles

• STAGE TUBE: Lea Salonga Sings LES MIS with Blake in Quezon City Christmas Concert (broadwayworld.com)
• Visakhapatnam still to wake up to green buildings (eco-business.com)
• Robinsons to build mall in Malabon (business.inquirer.net)
• Old School Overalls (justjireh.com)
• MMDA opens 12 new Christmas lanes (newsinfo.inquirer.net)
• (Rewind) Appraisers discuss Green building and Value (vaned.typepad.com)
• Fire guts part of Gateway mall in Quezon City (newsinfo.inquirer.net)

Stock News 2012: BDO Keen On PNB Acquisition

Philippine National Bank (Photo credit: Wikipedia)

The SM group of companies is making a bid for the acquisition of a stake in Philippine National Bank and its possible merger with BDO Unibank Inc. as talks between PNB and Bank of the Philippine Islands remained inconclusive.

In an interview SM Investments Corporation chief finance officer Jose Sio said they are in discussions with PNB’s principal shareholder Lucio Tan for a possible investment in PNB.

“We are always interested in making investments for as long as it will help us grow,” Sio said adding that BDO chairperson Tessie Sy has a good relationship with Tan.

However, Sio laughed off market talk that BDO has offered to acquire a stake in PNB at R150 per share. “Well I heard market talk saying we offered R200 per share,” he countered. PNB last traded at R92.70 per share.

Sio said the price will have to be determined after they look into the quality of PNB’s assets although he noted that the bank has a good land bank of prime properties. The SM group is also in real estate, particularly malls and residential buildings.

Bank of the Philippine Islands and PNB have earlier asked the Philippine Stock Exchange to suspend the trading of their shares as they disclosed that their principals are in discussion for a possible merger.

However, the banks eventually asked the PSE to lift the trading suspension since no deal has been made.

It was reported that PNB may have received counter-offers from other banks since a merger between BPI and PNB may translate to market leadership, dislodging BDO as the top bank and Metrobank as the second largest lender in the country.

Analysts had said that a merger between BPI and PNB would have triggered a new wave of merger and acquisitions (M&As) in the local banking industry.

Once a merger between BDO and PNB pushes through, this would further cement BDO’s position as the country’s biggest bank.

COL Financial research head April Tan Lee noted that, in the 1990s, there was a wave of M&As after Equitable Bank merged with PCI Bank.

“I think what happened was that Metrobank bought all these banks afterwards to maintain its number one position,” Lee said adding that, “The question today is, will that trigger more consolidation from big names because they want to maintain their lead?”

http://www.mb.com.ph/articles/385912/bdo-keen-on-pnb-acquisition#.UMKFQuSmj3w

Related articles

• Ayala in talks with Lucio Tan group for PNB stake (rappler.com)
• BPI in talks to acquire majority stake in PNB (business.inquirer.net)
• BDO eyes organic growth, denies bidding for PNB (business.inquirer.net)
• Stock News 2012: Stumbling block to banking deal of the decade (investingstocksinphilippines.blogspot.com)
• BPI-PNB Merger Talks (edsmoney.com)
• PNB-Allied-BPI merger to lift Lucio Tan banks' credit rating - Moody's (rappler.com)
• BPI, PNB in tie-up talks to become top lender (business.inquirer.net)
• Ayala hopes to finalize PNB deal before 2012 ends (rappler.com)
• Ex-PNB exec gets 105 years for check fraud (newsinfo.inquirer.net)
• PNB embarks on organisational transformation to serve better (thehindu.com)

Stock News 2012: New sin tax measure

English: A few bottles of Koval distilled spirits, from Koval Distillery in Chicago, Illinois, USA. (Photo credit: Wikipedia)

Members of the Senate and House of Representatives to the bicameral conference committee on Tuesday morning signed the sin tax reform measure that aims to bring more government revenues estimated at P 33.96-billion in 2013.

Sen. Franklin Drilon, acting chairman of the Senate ways and means committee chairman, said the total incremental revenue for the first year of implementation of the tax measure would be P23.4 billion from tobacco products and P10.56 billion from alcohol or a total ofP33.96 billion.

As of press time, the House representatives of the bicameral committee who have signed the report were House majority leader Neptali Gonzales II and Representatives Henedina Abad, Jocelyn Limkaichong, Eric Singson, Luis Villafuerte, and Arnulfo Fuentebella.

The senators who have signed were Drilon, Sergio Osmena III, Panfilo Lacson, and Pia Cayetano.

Lawmakers agreed that for cigarettes packed by hand, the tax that will be imposed by January 1, 2013 will be P12/pack; P15/pack by 2014; P18/pack by 2015; P21/pack by 2016 and a unitary rate of P30/pack by 2017.

The four percent increase of the P30/pack rate will kick off by 2018, and every year thereafter.

For cigarettes packed by machine, there is a cut off for net retail price (NRP) for prices of P11.50 and below and those priced P11.50 and above.

For P 11.50 and below, the excise tax that will be imposed will be P12/pack effective Jan. 1, 2013; P17/pack by 2014; P21/pack by 2015; and P25/pack by 2016.

Effective January 1, 2017, there will be a unitary rate of P30 per pack, and the four percent increase will kick off on January 1, 2018.

For fermented liquors such as beers, the two-tier rate will be based on an NRP of P50.60 or less that will have a tax of P15/per liter; and P50.60 and above, P20/per liter in 2013.

By 2014, fermented products priced at P50.60 or less will be imposed with P17/liter; P19/liter in 2015; P21/liter in 2016. By 2017, all beer regardless of NRP will have a single rate of P 23.50 per liter.

For distilled spirits, a specific tax of P 20 per proof liter and P15 of NRP, per proof liter in ad valorem tax will be imposed effective January 1, 2013. By 1025, there will be a 20 percent increase of NRP per proof liter, depending on the bottle. By 2017, ad valorem taxes for distilled liquor will increase as the NRP increases.

http://philstar.com/headlines/2012/12/11/884842/senators-congressmen-sign-new-sin-tax-measure

Related articles

• House, Senate OK sin tax bill (newsinfo.inquirer.net)
• House resumes deliberations on sin tax (newsinfo.inquirer.net)
• Tobacco-alcohol tax burden ratio is 69-31 (newsinfo.inquirer.net)
• Bicam moving towards setting sin tax target from P33.5B to P35B (business.inquirer.net)
• Drilon confident sin tax bill to be submitted to Aquino before yearend (business.inquirer.net)
• Sin tax bicam OKs P35-B target revenue for 2013 (rappler.com)

Stock News 2012: Manulife premiums up 60%

Insurance (Photo credit: Christopher S. Penn)

Manulife Philippines has reported a 60-percent growth in total premiums and deposits in the first nine months of 2012.

Total funds under management ballooned to a record P58.5 billion, while wealth sales increased 169 percent.

Total premium income reached P4.98 billion in 2011 based on data coming from the Insurance Commission (IC). That implies that premium income, including deposits, is around P7 billion end September this year.

The Asia Pacific Bond Fund (APBF) contributed significantly to the insurer’s AUMs despite having been launched in October 2011.

As of end-September 2012, APBF turned out a 7.06-percent return year-to-date – an impressive feat relative to similar funds. This is also much better than time deposit rates offered by most banks at currently below one percent.

APBF is available through Manulife Philippines’ dollar-denominated single pay (Affluence Max/Affluence Max Gold) and regular pay (Affluence Builder series) variable life products.

As of end-September 2012, total subscriptions amounted to $26 million for the fund.

According to Manulife Philippines president and chief executive officer Indren Naidoo, insurance sales in the third quarter were stimulated by the availability of new endowment and whole life products.

Endowment and whole life products are protection products that usually result in recurring business as payments are generally paid over a long period of time, in contrast to onetime or single pay premium products.

“The enhanced anticipated endowment are the Freedom series for the agency channel and MoneyMax series for the bancassurance channel, and whole life or the Seasons 100 for the agency channel and Legacy Protect 100 for the bancassurance channel products with financial protection coverage and guaranteed benefits,” Naidoo explained.

Total policies-in-force stood at nearly 400,000.

The Manulife Philippines chief executive said that the insurer expanded close to 4,000 agents primarily due to its rapid and aggressive branch office expansion throughout the country.

http://philstar.com/banking/2012/12/11/884484/manulife-premiums-60

Related articles

• John Hancock Closed-End Funds Portfolio Information Now Available (sacbee.com)
• Manulife Financial reports 3Q12 net loss of $227 million after absorbing a $1 billion charge related to the annual review of actuarial assumptions and a $200 million goodwill write-off. We generated core earnings of $556 million and achieved our 2014 hedg (sys-con.com)
• Manulife delays $4-billion profit target until 2016 (business.financialpost.com)
• Manulife says Hurricane Sandy exposure is 'manageable' (uk.reuters.com)
• Canada's Manulife Says Reinsurace Exposure to Hurricane Sandy 'Manageable' (insurancejournal.com)
• John Hancock Announces Results of Annual Meetings of Shareholders (sacbee.com)
• Jubilee Life drives on success of bancassurance initiative - The Express Tribune (ismailimail.wordpress.com)
• Is your job affecting your car insurance premium?| Sainsbury's Money Matters (sainsburysbank.co.uk)

Stock News 2012: Robinsons The Sapphire Bloc

Sjsu swimming pool (Photo credit: Wikipedia)

Investments made on gemstones are often considered a wise and promising venture. The same highly regarded quality is mirrored in the latest condominium development of Robinsons Land Corp., the Sapphire Bloc.

Strategically located in the center of Ortigas District, the four-tower residential and commercial development, sits on a 8,421-sqm property bounded by Sapphire, Garnet and Onyx Roads. It is envisioned to become the newest stand-out leisure destination in the area, as the new project will be offering a comfortable and convenient lifestyle through its well-designed residential towers and a unique commercial lifestyle bloc component on its ground floor.

“Robinsons Land Corporation aims to set the new standard in residential developments in its home, the Ortigas CBD. With this in mind, The Sapphire Bloc will be Ortigas’ biggest lifestyle bloc,” said Mybelle Aragon-GoBio, VP for Business Development and Financing.

The end goal, simply put, is to satisfy the discerning needs and wants of the active and career-oriented individuals, whose lifestyles demand the convenience of owning an abode at the heart of the city.

“Being located within a pedestrian-friendly Ortigas CBD, we are promoting the ‘walkable lifestyle’. The Sapphire Bloc will be a walkable destination where one can find gourmet restaurants, dessert bars and coffee shops. It will also offer services and shops that will provide a holistic approach to wellness to its customers. Its Lifestyle Bloc will showcase a one-of-a-kind retail mix that will make it a premium investment,” Ms. Aragon-GoBio said.

“Through the art-deco inspired project, Robinsons Land Corporation gives value to your money by giving you efficient-designed living spaces and various amenity offerings the feel of the authentic lifestyle offered by its retail component,” she added.

Among these top-notch amenities that will guarantee comfort are function rooms, private theater, game room, fitness/gym, adult swimming pool, kiddie pool, pool deck, massage/sauna rooms, lawn, children’s playground, gazebo, viewing deck and landscaped areas.

Rising 38 stories high, The Sapphire Bloc will have a total of 414 units with cuts ranging from 30 sqm to 37.3 sqm for a one-bedroom unit (priced between P3 million and P4.08 million); 45.5 sqm to 60 sqm for a two-bedroom unit (P4.9 million to P6.6 million); and 97 sqm for a three-bedroom unit (P10.42 million to P10.6 million).

http://www.mb.com.ph/articles/382179/robinsons-presents-the-sapphire-bloc#.UMJMHeSmj3w

Related articles

• Robinsons Land unveils project in Ortigas CBD (business.inquirer.net)
• Creche making competition in Manila (ireport.cnn.com)
• Netanyahu to claim landslide win as center-left bloc plummets: poll (nzweek.com)
• Sapphire Jewelry the Hottest Jewelry Trend of the Summer (prweb.com)
• Where to buy property: Follow LRT tracks (rappler.com)
• Savills Vietnam Has Become Exclusive Sales Agent For Ho Guom Plaza (savills.co.uk)
• Swap a stressful UK lifestyle for laid-back French living at the French Property Exhibition London Olympia (prweb.com)

Stock News 2012: Biggest US Health Insurer Sets Up Back Office In Taguig

English: Bonifacio High Street at Taguig City, Philippines (Photo credit: Wikipedia)

America’s largest health insurer, UnitedHealth Group Inc., has set up a back office in Philippines to provide offshore critical business support services.

“We welcome UnitedHealth’s decision to transfer to Manila various labor-intensive, information technology-enabled business support functions,” said House Deputy Majority Leader Roman Romulo, a key backer of the booming business process outsourcing (BPO) industry in the Philippines.

“This is yet another strong vote of confidence in Philippines coming no less from a major American corporation in the US Dow Jones 30 (stock market index),” Romulo said.

Romulo said UnitedHealth, ranked No. 22 in the Fortune 500 largest US corporations by gross revenue, has began hiring Philippine staff, including Filipino registered nurses with hospital experience, BPO exposure, and who have active US licenses.

The nurses are being signed up to perform Philippine-based jobs as “nurse associates, clinical quality analysts and clinical managers.”

Romulo said UnitedHealth is also recruiting medical billing coordinators, medical coding specialists, healthcare experts, and customer service associates with BPO experience in a financial account or in handling human resource processes.

UnitedHealth’s move to relegate several business support activities to a new in-house center at the McKinley Hill Cyberpark in Taguig City came not long after Romulo predicted that a new US law enabling more Americans to obtain health insurance would boost the BPO sector in the Philippines.

In October, Romulo had expressed confidence that Obamacare would drive new demand for health insurance-related business support services in Manila.

http://www.mb.com.ph/articles/385111/biggest-us-health-insurer-sets-up-back-office-in-taguig#.UMJK7uSmj3w

Related articles

• The Philippines, the World's New Call Center Capital (theepochtimes.com)
• Solon allays fears of US getting back BPOs with Obama win (business.inquirer.net)
• Dynamite punch stuns Philippines (sports.inquirer.net)
• IBM to expand BPO operations in PH (business.inquirer.net)
• Lucky 7: The sunrise sectors of 2013, 2014 (rappler.com)
• Taguig police chief, 8 antinarcotic cops relieved over drugs (newsinfo.inquirer.net)
• IOS 2012: It's More Fun to Outsource to the Philippines (prweb.com)
• Philippine BPO firms take Obama win in stride (business.inquirer.net)
• BPO industry welcomes Obama win despite anti-outsourcing threat (rappler.com)
• #TalkThursday: The soaring Philippine real estate market (rappler.com)