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Sunday, March 31, 2013

Stock News 2013: PAL plans to build Philippines’ biggest airport

English: Photo of the Centennial terminal area...
English: Photo of the Centennial terminal area at the Ninoy Aquino International Airport. (Photo credit: Wikipedia)


Shortly after signing a multibillion-dollar deal to acquire 50 new planes—the biggest aircraft order in the country’s history—flag carrier Philippine Airlines (PAL) on Thursday disclosed plans to build what could be the largest airport in the Philippines.

The planned airport would be able to handle four times as many flights per hour as the congested Ninoy Aquino International Airport (Naia) in Pasay City. Naia, built in the 1950s, has been criticized as obsolete with decrepit facilities. It can handle 36 flights per hour.

PAL president Ramon S. Ang said investments in infrastructure was part of the company’s aggressive expansion program, which could include rehiring some of the 2,600 employees PAL retrenched in October of last year.

“We have a plan for our own terminal and runway. We still have to clear this with the government but we are hoping they will support us,” Ang told reporters at the sidelines of the firm’s annual shareholders’ meeting.

He said the new airport would be closer to Manila than the Clark International Airport in Pampanga, which the government is grooming to replace Naia.

Ang, who also serves as president of PAL’s controlling shareholder San Miguel Corp., declined to disclose the prospective location for the new facility, but said the company would need at least 2,000 hectares of land for the project.

The new airport, which will be exclusive to PAL and sister firm PAL Express (formerly Air Philippines), would have two parallel runways when it opens, with the option of having two more. Parallel runways mean two planes can take off and land at the same time—now impossible at Naia’s perpendicular runways.

Ang said the government’s plan to turn Clark into the country’s premier gateway might be ill-advised, given the facility’s distance from Manila. “If you want to fly [from] Clark, how long will it take you to get to the airport? Two hours if you are coming from Makati. Then you have to wait two more hours for your flight,” Ang said.

He said plans to build a new high-speed railway between Metro Manila and Clark—at an estimated cost of $10 billion—would be too heavy a burden for the government to carry.

Ang said the company would shell out about $500 million in equity for the airport project. The rest of the project cost would be financed using loans from foreign or local banks.

Once approved by the government, he said PAL could complete the project in three years. “We plan to pitch this to President Aquino in January or February. Hopefully, this is aligned with the government’s plans,” he said.



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Saturday, March 30, 2013

Stock News 2013: PH gets P23-B loan from Japan for LRT, airport

Edmonton LRT
Edmonton LRT (Photo credit: Pommie)

The Japanese government has provided the Philippines with a fresh P23.19 billion in loans for critical transport infrastructure, including the upgrading of two metro railways and the construction of a higher-capacity airport in Bohol.

Japanese Ambassador Toshinao Urabe and Foreign Secretary Albert del Rosario on Monday signed loan agreements on the P18.56-billion extension of Light Rail Transit (LRT) lines 1 and 2 and the construction of a P4.63-billion airport in Panglao.

The signing formalized an announcement of the loans by Japanese Foreign Minister Fumio Kishida during his visit to Manila in January. The Department of Foreign Affairs (DFA) said the Department of Transportation and Communication will implement the projects.

“As you know, Japanese development aid emphasizes the importance of infrastructure. Better infrastructure creates business opportunities for private investment and more jobs. More income means more consumption and more tax input,” said Urabe on Monday afternoon.

“Improved government finance will lead to more public investment in better welfare programs. In short, economic growth becomes sustainable,” he said at the signing rites at DFA headquarters in Pasay City.

Details of the projects have yet to be released, but the DFA said the Panglao airport project would upgrade the existing Bohol airport to international standards.

Urabe said he himself experienced less than ideal conditions at the Bohol airport during a trip in November, when his flights coming in and out of the province were each delayed an hour. He noted that a delay had a ripple effect on other flights.

Apart from the loans, the Philippine and Japanese sides announced the awarding of a grant in aid totaling P443.33 million for the construction of hydropower projects in Ifugao and Isabela.

The DFA said the two “mini hydropower projects” were part of the Department of Energy’s program “to develop renewable energy resources for energy sustainability, stability and security.”

Urabe said the projects would apply Japanese technology that “use small amounts of water to generate cheap and clean electricity.” The hydropower system will also have minimal negative effect on agriculture, he said.

Japan is the Philippines’ largest donor of loans and grants with $593.3 million (P24 billion) in aid disbursements in 2011, according to the Organization for Economic Cooperation and Development. This accounts for 40 percent of the total official development aid disbursements that year, ahead of aid from the United States at $541.3 million (P22 billion).


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Thursday, March 21, 2013

Stock News 2013: PSEi rebounds after 8-day decline

Meralco's franchise area.
Meralco's franchise area. (Photo credit: Wikipedia)

The local stock market found relief after an eight-day bloodbath on Thursday while investors across the region took heart from US Federal Reserve’s vow to maintain its easy monetary policy.

After pulling back by 6.5 percent since hitting successive record highs earlier this month, the Philippine Stock Exchange index clawed back 53.36 points or 0.83 percent to close at 6,472.98 on Thursday.

Fund managers said the decline in the last eight days was a good opportunity to allow investors to reenter the market after locking up gains from recent highs.

All counters bounced but the biggest rise was posted by the services (+2.31 percent) and mining/oil (+1.93 percent) counters.

Value turnover amounted to P9.5 billion. There were twice as many advancers (103) for every decliner (50).

Semirara Mining was an outperformer for the day (+7.09 percent) on reports its coal mining operation may resume operations by April.


http://business.inquirer.net/113477/psei-rebounds-after-8-day-decline
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Saturday, March 16, 2013

Stock News 2013: Tan-Sia property firm ventures into Metro Manila

De La Salle University
De La Salle University (Photo credit: Wikipedia)

DoubleDragon Properties Corp., a property venture of fast food magnates Tony Tan Caktiong and Edgar “Injap” Sia II, is breaking into Metro Manila’s competitive property market by bringing P1.52 billion worth of residential inventory in a skyscraper rising beside the De La Salle University in Taft Avenue.

W.H. Taft Residences, DoubleDragon’s first offering in Metro Manila, is a 30-story residential condominium that will have 562 “education-inspired” units, said Sia, who is the company chairman and CEO.

It will rise on a 1,200-square-meter lot right beside the main gate of DLSU and will have a back access to the campus.

This also boosts DoubleDragon’s visibility in the metropolis especially as the company plans to debut on the Philippine Stock Exchange soon. The initial public offering may happen by the third quarter of this year, Sia said.

Being a relatively new player in the property market especially in Metro Manila, Sia said DoubleDragon was picky on its projects and it preferred those that required shorter completion period. The company has committed to turn over to buyers residential units in W.H. Taft Residences by the fourth quarter of 2014.

“Other major property developers are also constructing in the area but the location of WH Taft Residences is far more superior, plus the completion date of WH Taft Residences is already next year, compared to the big players. The others are still in the substructure phase and turnover will be two to three years later,” Sia said in an e-mail.

Sia said 64 percent of this project was already taken up as of end-February. “We just relaunched it. We target to sell the remaining 36 percent, or 198 units, before the project is completed,” he said.

The residential units have floor areas ranging from 15.5 to 35 square meters. They sell for P98,000 and P100,000 per sqm.

The ground and second floors of the building will have commercial retail areas for lease.

DoubleDragon’s earlier projects and landholdings were in Iloilo and Roxas.

“DoubleDragon Properties will continue looking at acquiring existing projects or property companies that will accelerate its growth. It aims to create prime retail sites not just for the Jollibee Group brands (Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal, Burger King) but also for other major anchor tenants,” Sia said.

http://business.inquirer.net/111565/tan-sia-property-firm-ventures-into-metro-manila-market

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Friday, March 15, 2013

Stock News 2013: AirAsia acquires 49 percent of Zest Air

English: Zest Air logo
English: Zest Air logo (Photo credit: Wikipedia)

PhilippinesAirAsia (PAA) Incorporated on Monday said that it has acquired 49 percent of local budget carrier Zest Airways, Incorporated in a strategic alliance envisioned to strengthen their operations in both Clark International Airport and Ninoy Aquino International Airport.

In a statement, Philippines’ AirAsia CEO Marianne Hontiveros said that the “strategic alliance” between the two budget carriers would “complement the strategies for future growth of PAA (Philippines’ AirAsia), which currently operates out of Clark.”

PAA entered into a strategic alliance agreement with Ambassador Alfredo Yao, the majority shareholder of Zest Airways Inc. And Asiawide Airways Incorporated.

Hontiveros said that the investment in the Zest Group will allow Philippines’ AirAsia to “leverage on our respective strengths, which in the case of Zest Air, include its operations out of the Ninoy Aquino International Airport.”

Zest Air will get a 15 percent stake in Philippines’ Air Asia.

Zest Air operates 11 aircraft on 10 domestic and 10 international routes. It has hubs in Manila, Kalibo and Cebu in the central Philippines, which are major tourist destinations.

Malaysia-based AirAsia started operations in the Philippines in 2012 from Clark airport, a 2-3 hour drive from the capital, while Zest Air operates from Ninoy Aquino International Airport in Manila. AirAsia’s routes from Clark include Kuala Lumpur, Hong Kong, Singapore, Taipei and Kalibo and Davao in the Philippines.

http://business.inquirer.net/111699/airasia-expands-in-philippines-buys-into-zest-air
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Thursday, March 14, 2013

Stock News 2013: PLDT to expand fiber optic network

The PLDT Logo
The PLDT Logo (Photo credit: Wikipedia)

Philippine Long Distance Telephone Co. is rolling out over 5,000 kilometers of new fiber optic cable this year to support both wireless and fixed-line services across the country.

In a statement, PLDT said it would spend P2.5 billion to push its fiber optic network to over 60,000 kilometers this year.

The fiber expansion program for 2013 will cover the domestic fiber optic network (DFON) used for long-haul applications, fiber-to-the home (FTTH), fiber-in the-loop (FITL) and other inter-office fibering projects.

The FTTH project, for example, will make PLDT’s high-speed internet services available to about two million homes in different parts of the country, incuding Metro Manila, the regions of Central Luzon, Southern Tagalog, and the provinces of Panay, Negros Occidental, Cebu, and Davao.

“With this expansion program, we are bolstering our already formidable fiber advantage,” PLDT president and CEO Napoleon Nazareno said.

“Fiber is key to having the capacity to deliver next-generation, large-bandwidth data services,” he added.

Additional fiber links include submarine cables that will boost the data connectivity of the islands of Palawan, Bohol and Panay where the demand for resilient data services is rising due to the booming tourism and business process outsourcing industries in these areas.

Last month, PLDT announced the completion of the Hong Kong FOC extension project as part of the 7,800-km undersea Asia Submarine-cable Express system that links the Philippines to Japan, Malaysia, Singapore, and Hong Kong through PLDT’s new landing station in Daet, Camarines Norte.

http://business.inquirer.net/111709/pldt-to-expand-fiber-optic-network

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Wednesday, March 13, 2013

Stock News 2013: Metrobank nets P15.4 B in 2012

Metropolitan Bank and Trust Company
Metropolitan Bank and Trust Company (Photo credit: Wikipedia)

Local banking giant Metropolitan Bank and Trust Co. increased its net profit last year by 40 percent to a record-high P15.4 billion on higher interest and non-interest earnings.

Metrobank, the banking arm of tycoon George Ty, also announced that its balance sheet had exceeded the P1-trillion mark for the first time. Total assets increased by 9 percent to total P1.04 trillion by the end of the year. It is the second Philippine bank to breach this milestone after Banco de Oro Unibank.

The increase in balance sheet was fueled by a 15-percent rise in its loan book to P525.7 billion, with the consumer and commercial middle market leading the growth. The expansion in earning assets was supported by an 8-percent growth in deposits to P738.7 billion.

Total operating income improved by 16 percent to P58.7 billion on the back of a 5-percent growth in net interest income to P30.8 billion. Non-interest income also increased by 33 percent.

Despite intensified market competition, Metrobank noted that its net interest margin improved to 3.6 percent from last year’s 3.5 percent supported by a more favorable deposit mix.

http://business.inquirer.net/111051/metrobank-nets-p15-4-b-in-2012

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