Investing Stocks in Philippines

Monday, April 23, 2012

Stock News 2012: Atok-Big Wedge swings to profit in 2011

Ongpin-led Atok-Big Wedge Co. Inc. swung to a net income of P6.68 million last year from a net loss of P41.9 million in 2010, boosted by one-time gains from the sale of a subsidiary and the acquisition of a substantial stake in Forum Energy Plc.

During the company’s annual stockholders meeting Friday, Atok president Walter Brown said revenues went up 53 percent to P42.2 million.

The turnaround in its financial performance was also attributed to the reduction in the firm’s general and administrative expenses from P68.87 million to P35.52 million.

Brown said the company’s growth momentum will continue this year as it expects to benefit from its indirect investment in Forum, a United Kingdom-based gas and oil exploration and production company which has a 70 percent equity in Service Contract 72 covering the Sampaguita offshore gas project located off the north west coast of Palawan.

In October 2011, Atok acquired 100 percent of Tidemark Holdings Ltd, a Hong Kong company that owns 25.92 percent of Forum’s outstanding capital.

Brown reported that the interpretation of SC 72’s seismic program was already completed and that the results were encouraging. A drilling program is slated to begin early December this year.

SC 72 is a joint venture between Forum Energy and Monte Oro Resources and Energy Inc. Philex Petroleum has a 64.45 percent direct and indirect interest in Forum Energy which was acquired before Ongpin sold his stake in PPC parent company Philex Mining Corp.

Outside the Philippines, the company was granted authority to establish a representative office in Laos in April 2011.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=799687

Sunday, April 22, 2012

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: Maynilad allots P300 million for repair of leaking pipes

West Zone concessionaire Maynilad Water Services, Inc. has allocated P300 million for the repair of pipe leaks this year.

Maynilad said in a statement yesterday that the P300 million would be spent for its active leakage control program which involves the repair of pipe leaks as well as the maintenance of accessories.

Maynilad has also allotted P20 million for the purchase of a new leak detection equipment.

The firm uses state-of-the-art leak detection technologies to control pipe leaks.

“We inherited a lot of old and deteriorated pipes. Instead of implementing total pipe replacements which are very costly and disruptive to the public, we’re actively searching for underground leaks so we can repair them using more cost-efficient means,” Ricky Vargas, president and chief executive officer of Maynilad said.

Maynilad said that for the first quarter, it has already repaired nearly 12,000 leaks, which is approximately 17 percent higher compared to the same period last year.

Most of the leaks were found on primary and secondary lines in Caloocan, Manila and Quezon City.

Maynilad has set its capital expenditures for this year at P8.4 billion to improve and expand its water and wastewater services.

The firm said earlier it was looking to raise P2 billion in the latter part of the year to fund development projects.

Maynilad is the largest private water concessionaire in the country in terms of customer base.

http://www.philstar.com/Article.aspx?articleId=798672&publicationSubCategoryId=66

Saturday, April 21, 2012

Stock News 2012: Robinsons Land to expand retail portfolio

Robinsons Place Dumaguete in Dumaguete City, Negros Oriental, Philippines (Photo credit: Wikipedia)
Gokongwei-led Robinsons Land Corp.(RLC) is scaling up its retail portfolio in the next two years to boost its total mall leasable area to a little over one million square meters.

RLC president Frederick D. Go told reporters after the company’s annual stockholders meeting late Wednesday that they are building seven new shopping malls and expanding three of 29 existing malls in 2012-2013 to take advantage of the expected strong consumer spending and a booming business process outsourcing (BPO) industry.

Go said three new malls will be built this year while another four in 2013.

In March, RLC opened its first full-service mall in Calasiao, Pangasinan. The company is slated to open Robinsons Place Palawan in May and Robinsons Magnolia in July.

RLC recently completed two mall expansion projects in Tacloban and Bacolod.

Together with the two expansion projects, RLC’s total gross leasable area will reach 911,000 square meters at end-September this year. In 2013, RLC will add another 100,000 sqm to bring the total GLA to 1.01 million sqm.

In the office sector, RLC expects to complete Cyberscape Alpha and Cyberspace Beta in mid-2013 which will increase total net leasable area to 274,000 sqm from 194,000 sqm this year.

Go said the company is scouting for more land to purchase to expand their office building portfolio.

RLC has set aside P13 billion for capital expenditures this year, majority of which will go to new mall openings, office buildings and hotels.

Aside from this, it is planning to open two more Go Hotels this year, in Tacloban and Bacolod. It already opened in Palawan and Dumaguete in the first quarter of the year.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=798682

Friday, April 20, 2012

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: BSP maintains key policy rates

Seal of Bangko Sentral ng Pilipinas (1993-2010) (Photo credit: Wikipedia)
The Bangko Sentral ng Pilipinas (BSP) yesterday maintained its key policy rates, noting that easing inflation has given it more room to pause after two rates cuts this year.

As such, interest rates remained at a record low of four percent for the overnight borrowing rate and at a record low of six percent for the overnight lending rate.

“The Monetary Board’s assessment of a favorable inflation environment formed the primary basis for the latest monetary policy decision,” BSP Governor Amando Tetangco Jr. said.

He said the latest baseline forecasts continue to indicate that inflation will likely settle near the lower half of the three- percent to five-percent target range in 2012 and 2013, while inflation expectations have remained well anchored.

Because of easing inflation, the BSP has revised downward its inflation forecast for 2013 to 3.3 percent from a previous forecast of 3.4 percent.

At the same time, monetary authorities noted that the balance of risks to the inflation outlook now leans toward the upside as oil prices have remained elevated and at risk from ongoing tensions in the Middle East as well as strong demand from emerging economies.

Moving forward, the BSP will continue to pay close attention to the outlook for inflation and growth to ensure that monetary policy settings remain consistent with price stability while being supportive of non-inflationary economic growth.

The first BSP rate cut was made last Jan. 19 followed by another 25-basis point reduction on March 1 on the back of a benign inflation outlook and slower than expected global economic growth.

Inflation eased to 2.6 percent in March from 2.7 percent in February, latest data from the National Statistics Office (NSO) said.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=798657

Stock News 2012: San Miguel's Ang is PAL's new president

San Miguel Premium Lager (Photo credit: drewesque)
Listed PAL Holdings, Inc. announced on Friday the appointment of San Miguel Corp. President Ramon Ang as its new president and chief operating officer.

The appointment of Ang came after the diversified conglomerate San Miguel acquired a 49% stake in the flag carrier.

In a disclosure to the Philippine Stock Exchange, PAL said Ang replaced Jaime Bautista, who resigned along with Domingo Chua, Wilson Young, Juanita Tan Lee, Johnip Cua and Ma. Cecilia Pesayco.

http://www.philstar.com/Article.aspx?articleId=798971&publicationSubCategoryId=200