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Tuesday, November 04, 2003
Philippine
Treasury confirms short-term bond issue plan before yr-end
Philippines'
PLDT braces for management changes - Pangilinan
Philippines'
PLDT maintains 2003 net profit target of 9.0-10.0 bln pesos
Philippines'
PLDT 9 mths net profit surges despite extra Q3 provisions
Manila
shares close mixed; PLDT lifts index to 19-mth high
Philippines'
Arroyo drafts covenant to end impeachment crisis
Philippine
PLDT 9 mths to Sept net profit 5.80 bln pesos vs 3.67 bln
Philippine
Aboitiz opens power venture in Subic to other investors
Philippines' Piltel COO
resigns
DATAWATCH
- Philippine Sept export growth weaker than Asian peers - AB Capital
STOCKWATCH
- Philippines' PLDT firmer on ADR gain, ahead of Q3 results
Philippines'
Meralco defers payment of Q3 cash div on preferred shares
Philippine
Sept merchandise exports 3.264 bln usd, up 2.30 pct yr-on-yr
Philippines'
PLDT may consider management changes in next six mths - report
Philippines
expects to remain on CalPERS' list of investment sites - Camacho
Philippines'
Robinsons Land acquires prime lot in Fort Bonifacio - report
Philippines'
PCGG seeks re-freeze order on San Miguel shares - report
Philippine
Realty expects to cut debts to 1.0 bln pesos from 2.7 bln
Philippines
confident October budget deficit target will be met - Camacho
Philippines
military to declare red alert Nov 4 as political crisis looms
Philippine
Trust Co's capital hike plan approved by SEC
Monday, November 03, 2003
Philippine
Napocor sees 2004 loss at 113 bln pesos vs 75 bln forecast this yr
Forex
- Philippine peso closes weaker on across-the-board dollar strength
Philippines'
DFNN says has SEC approval to list extra 27.0 mln common shares
US
Marines begin joint operations in Philippines amid tight security
Philippines'
Aboitiz-led Subic Enerzone commences power supply business
Philippines'
Piltel 9 mths net loss 1.33 bln pesos vs loss 2.93 bln
Manila
shares close mixed; telcos' gains lift index to new 18-mth high
Forex
- Philippine peso weaker mid-morning on across-the-board dollar strength
Philippine
hotels' Jan-Aug avg occupancy rate 56.91 pct vs yr-ago 60.35 pct
STOCKWATCH
- Philippines' SM Prime gains ahead of Q3 results
Philippines'
Sinophil Corp 9 mths net loss 2.40 mln pesos vs profit 11.2 mln
Philippines'
Jan-Sept tourist arrivals down 8.00 pct yr-on-yr
Philippines'
Globe Telecom to release Q3 results on Nov 11
Philippines'
San Miguel protests BIR tax ruling - report
Philippine
govt readies 300 mln usd treasury bond issue - report
Philippine
govt may exceed 2003 budget deficit ceiling - report
| Philippine Treasury confirms short-term bond issue plan before yr-end |
MANILA (AFX-ASIA) - The Bureau of Treasury confirmed it is planning to issue short-term dollar-denominated bonds in the local market before the year ends as part of its pre-funding activities for its 2004 financing requirements. "We're planning to tap the local market for about 200 mln usd within the year," National Treasurer Sergio Edeza told reporters. He said the government is considering a bond issue with a one- to three-year maturity. The government is seeking to cover before the end of the year up to 1.0 bln usd of the 1.8 bln usd in foreign financing requirement for next year. It has already raised about 800 mln usd from the recent sale of 1.05 bln usd worth of long-term bonds. Edeza said the government has asked several foreign and local banks to submit underwriting proposals for the bond issue, including First Metro Investment Bank, Land Bank of the Philippines, (1 usd = 55.509 pesos) afxmanila@afxasia.com |
| Philippines' PLDT braces for management changes - Pangilinan |
MANILA (AFX-ASIA) - Despite its strong financial performance and positive prospects, the Philippine Long Distance Telephone Co is bracing for management changes in the next few months, company president and chief executive officer Manuel Pangilinan said. He said PLDT chairman Antonio Cojuangco has expressed his intention to retire in two to three months. Pangilinan indicated he himself may have to move to another position. He declined to be more specific about the possible movements in management, but he told reporters: "There's always a time to go. For me personally I think it's quite near." "We discussed this in the board meeting today. (Cojuangco's) retirement is subject to the satisfactory completion of a two- to three-month transition period." A local newspaper reported, citing an unidentified source, that Pangilinan may take over as PLDT chairman. The report speculated that the current positions held by Pangilinan may be given to Napoleon Nazareno, currently president and chief executive officer of PLDT subsidiary Smart Communications. But Pangilinan said Nazareno will stay on as CEO of Smart. Cojuangco leads a group of investors that recently acquired ownership of television network Associated Broadcasting Co (ABC 5). Pangilinan is also managing director of Hong Kong-based First Pacific Co Ltd, parent of PLDT. "The board of First Pacific wants me to spend more time in Hong Kong. It won't be fair for PLDT because it needs a full-time person," Pangilinan said. afxmanila@afxasia.com |
| Philippines' PLDT maintains 2003 net profit target of 9.0-10.0 bln pesos |
MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co said it expects no additional major provisions in the last quarter of 2003, making it possible for the company to meet its full-year net profit target of 9.0-10.0 bln pesos. "We're maintaining the guidance numbers of 9.0-10.0 bln pesos after provisions and 14.0-15.0 bln pesos before provisions," PLDT president and chief executive officer Manuel Pangilinan said at a news briefing. PLDT posted a net profit of 5.80 bln pesos in the nine months to September, up 58.00 year-on-year and boosted by sustained strong earnings from wireless unit Smart Communications Inc. Net profit before provisions stood at 11.30 bln pesos, 140.00 pct higher than the year-earlier period. PLDT said the provisions were related to job cuts and certain investments. (1 usd = 55.509 pesos) afxmanila@afxasia.com |
| Philippines' PLDT 9 mths net profit surges despite extra Q3 provisions |
(Updating with results of Smart, fixed-line business) MANILA (AFX-ASIA) - Philippine Long Distance Telephone (PLDT) said it booked a preliminary and unaudited net profit of 5.80 bln pesos in the nine months to September, up 58.00 pct year-on-year, despite provisions related to job cuts and certain investments. Without those non-recurring charges, PLDT said its net profit during the nine-month period stood at 11.30 bln pesos, 140.00 pct higher than in the year-earlier period, on the back of a 212.00-pct rise in the net profit of wireless unit Smart Communications Inc. Analysts polled by AFX-Asia expected PLDT's third quarter net profit in the range of 2.50-3.70 bln pesos, which would have brought nine-month net profit into the 6.70-7.90 bln pesos range. These forecasts did not take into consideration any new provisions made by the company in the third quarter. In the first half of this year, PLDT booked non-cash provisions of 3.50 bln pesos for investments and other assets, bringing its total first-half provisions to 4.80 bln pesos. They include investments in regional cellular operator ACES, HomeCable and Philcom. Smart booked net profit of 4.20 bln pesos in the third quarter alone and 10.30 bln pesos in the nine-month period. The combined wireless subscribers of Smart and Talk 'N Text, the mobile phone brand of another PLDT affiliate, Pilipino Telephone Corp, exceeded the 12.00-mln mark as of end-October, from over 11.00 mln as of end-August. Smart and Talk 'N Text added nearly 1.20 mln subscribers in the third quarter alone. PLDT said Smart paid an additional cash dividend of 1.90 bln pesos on Nov 3, bringing total cash dividends so far this year to 6.20 bln. PLDT said its consolidated revenues totalled 70.40 bln pesos, up 21.00 pct year-on-year, while consolidated EBITDA rose 19.00 pct year-on-year to 39. 90 bln. It said the group debt level was reduced by 247.00 mln usd during the nine-month period, but did not disclose the end-Sept level. "I realize that 2003 is not over yet but the resiliency and intensity shown by the group in meeting, if not exceeding, its targets fill me with great optimism that we will end this year stronger than ever," PLDT president and chief executive officer Manuel Pangilinan said. Pangilinan noted that Smart's overall performance was "simply amazing" as it continued to exceed expectations and is set to push back the so-called saturation point of cellular penetration rate in the country. Smart added nearly 2.2 mln subscribers during the nine-month period to bring its subscriber base to over 9.0 mln at end-September. Smart's nine-month revenues rose to 34.5 bln pesos from 23.0 bln a year ago, with EBITDA growing 69 pct to 20.6 bln pesos from 12.2 bln - as revenue growth continued to outpace growth in expenses. PLDT said Smart's capital expenditures remained within the full-year estimate of 9.0 bln pesos, with some 6.9 bln spent in the first nine months of 2003. It has extended its nationwide coverage to 939 cities and municipalities, covering 84 pct of total population. Smart's switching capacity has been expanded to accommodate 13.8 mln subscribers from 9.6 mln at end-2002. Smart's free cash flow rose to 10.7 bln pesos in the first nine months of the year from 7.5 bln in the year-earlier period, enabling it not only to reduce its debt by 86 mln usd but also pay dividends representing 100 pct of its 2002 net profit of 6.2 bln pesos to PLDT. "While Smart's strategies must evolve to keep pace with changes in technology and the marketplace, our basic philosophy remains the same - very simply, we provide a wide array of voice and data services and make these services available and accessible at affordable prices," Smart president and chief executive officer Napoleon Nazareno said. "At the same time, we endeavor to keep our variable costs down so that even marginal subscribers become profitable for us." He also noted that Smart's record net profit in the third quarter "should belie the conventional thinking that decline ARPUs (average revenue per user) necessarily translate into lowering profitability." Smart's increasing EBITDA margins, at 60 pct at end-September from 53 pct at end-2002, "should further substantiate our belief that increased revenues derived from a growing subscriber base coupled with controlled variable costs will result in a healthy bottomline," Nazareno added. On the fixed line side, PLDT said total revenues remained steady at 33.9 bln pesos in the nine months to September. EBITDA, excluding the effects of non-recurring charges, increased to 22.7 bln pesos supplemented by 4.3 bln dividends from Smart. Following the implementation of its Manpower Reduction Program, PLDT booked a 1.9-bln peso manpower reduction cost, including a curtailment cost of 533 mln pesos, or 362 mln after-tax, for accelerated past service pension and other costs. PLDT closed up 45.00 pesos at 825 on 393,950 shares. (1 usd = 55.509 pesos) edelacruz@afxasia.com |
| Manila shares close mixed; PLDT lifts index to 19-mth high |
(Updating with analyst comments, share prices) MANILA (AFX-ASIA) - Share prices closed mixed, with strong gains in Philippine Long Distance Telephone (PLDT) lifting the composite index to its highest level in 19 months, dealers said. PLDT sustained buying interest, with its nine months to September net profit surging 58.00 pct year-on-year to 5.8 bln pesos on the back of strong gains in the wireless business, despite provisions related to job cuts and certain investments. Some stocks succumbed to profit-taking as domestic political concerns arising from the impeachment issue against Supreme Court Chief Justice Hilario Davide Jr weighed on sentiment. The composite index closed up 20.68 points or 1.47 pct at 1,432.27 on volume of 316.99 mln shares valued at 697.13 mln pesos. It traded between 1, 421.08 and 1,432.27. It is the index highest close since April 5, 2002, when it closed at 1, 432.86. In the broader market, however, losers outnumbered gainers 28 to 23, with 48 stocks unchanged. PLDT was top traded and up 45.00 pesos at 825 on volume of 393,950 shares. Its New York-listed American Depositary Receipts rose a hefty 0.65 usd to 14.45 overnight, ahead of the release of third quarter results. Without the non-recurring charges, PLDT said its net profit during the nine-month period stood at 11.30 bln pesos, 140.00 pct higher than the year-earlier period, as wireless unit Smart Communications Inc posted a solid 212.00-pct rise in nine-month net profit to 10.3 bln pesos. Analysts polled by AFX-Asia expected PLDT's third quarter net profit to be in the range of 2.50-3.70 bln pesos, which would have brought nine-month net profit into the 6.70-7.90 bln pesos range. These forecasts did not take into consideration any new provisions made by the company in the third quarter. "The market is carried mainly by telecom stocks led by PLDT on expectations of improved third quarter earnings and full-year prospects," Summit Securities president Harry Liu said. "I think what PLDT has been doing is a prudent move. It is better to book those provisions now when Smart is making hefty gains rather than do it later when earnings growth has slowed down," said Regina Capital Development Corp analyst Gomer Tan. Analysts, however, said the market is due for profit-taking after having reached overbought levels. Although still focused on the third quarter corporate results, investors are seen cautious as the impeachment issue against Davide has fuelled worries over possible destabilization attempts in the country, forcing the military to place its troops on its highest alert status from today. Globe Telecom, which is scheduled to announce its results next week, was up 30.00 pesos at 840 on 51,330 shares. PLDT affiliate Pilipino Telephone Corp, which has narrowed its nine months to September net loss to 1.33 bln pesos from 2.93 bln a year earlier, was up 0.01 at 0.92 on 33.5 mln shares. Bank of the Philippine Islands was up 1.00 at 46.50 on 653,800 shares. San Miguel B, available to foreign investors, was up 1.00 at 63, while San Miguel A was unchanged at 57.00. Manila Electric B, open to foreign investors, was down 0.50 at 19.75, while Meralco A was unchanged at 13.75. The all-shares index was up 15.37 points at 862.60. The commercial-industrial index was up 38.22 at 2,111.84, while property was down 0.62 at 625.68. Mining was down 55.56 at 1,671.13, and oil down 0.03 at 1.36. Banking and financial services rose 5.16 to 448.71. (1 usd = 55.509 pesos) edelacruz@afxasia.com |
| Philippines' Arroyo drafts covenant to end impeachment crisis |
MANILA (AFX-ASIA) - President Gloria Arroyo said she has drafted a covenant to end the crisis brought about by the impeachment complaint against Supreme Court Chief Justice Hilario Davide Jr. Copies of the draft have been sent to Davide, House Speaker Jose de Venecia and Senate President Franklin Drilon. "I have signified to them my willingness to sign the document together with the Speaker and the Chief Justice to affirm our tripartite commitment to the principles, precepts and procedures to resolve the impasse, with the Senate President as witness," Arroyo said in a statement. She added de Venecia is now consulting with members of the House, more than a third of which signed the impeachment complaint against Davide for alleged misuse of public funds. "I reiterate the basic principles involved. First, we must respect the supreme welfare of the people as defined by our Constitution and political traditions. Second, there must be an affirmation of co-equality, independence but indispensible cooperation and harmony among the three great branches of government," Arroyo said. She added the principle of checks and balances should also be reinforced. The House of Representatives will convene on Nov 10 to formally impeach Davide, who has refused to open the judiciary fund's books to Congress, citing the independence of the three branches of government. Davide, who has instead submitted the books to the Commission on Audit, would then stand to face trial before the Senate. "I have acted with nothing more in mind than national unity and reconciliation. I believe that when the public interest calls for it, the Presidency must never hesitate to use its moral influence to do right and to make the nation whole," Arroyo said. The President's call comes amid fresh rumors of another destabilization plot against the government. The military has been on red alert amid talk of a new military uprising in the offing and in anticipation of protest rallies over the impeachment complaint against Davide. cecille.yap@afxasia.com |
| Philippine PLDT 9 mths to Sept net profit 5.80 bln pesos vs 3.67 bln |
MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co's nine months to September financial results: Revenues - 70.403 bln pesos vs 58.164 bln Expenses - 48.053 bln pesos vs 43.999 bln Operating profit - 22.350 bln pesos vs 14.165 bln Other expenses - 15.179 bln pesos vs 9.341 bln Income before tax - 7.171 bln pesos vs 4.824 bln Tax provision - 1.531 bln pesos vs 1.176 bln Income before minority interests - 5.640 bln pesos vs 3.648 bln Net profit after non-recurring charges - 5.80 bln pesos vs 3.67 bln Net profit before non-recurring charges - 11.318 bln pesos vs 4.716 bln Adjusted EBITDA - 39.945 bln pesos vs 33.624 bln PLDT's third quarter to September results: Revenues - 24.184 bln pesos vs 20.237 bln Operating expenses - 16.108 bln pesos vs 16.216 bln Operating profit - 8.076 bln pesos vs 4.021 bln Other expense - 3.610 bln pesos vs 2.747 bln Income before tax - 4.466 bln pesos vs 1.274 bln Tax provision - 389 mln pesos vs 346 mln Income before minority interests - 4.077 bln pesos vs 928 mln Net profit - 4.015 bln pesos vs 958 mln pesos Earnings per share (basic) - 19.69 pesos vs 3.19 Earnings per share (diluted) - 19.06 pesos vs 3.19 (1 usd = 55.55 pesos) cecille.yap@afxasia.com |
| Philippine Aboitiz opens power venture in Subic to other investors |
MANILA (AFX-ASIA) - Aboitiz Equity Ventures said it has signed an equity shareholders agreement with several investors for its new power distributorship business in the Subic Bay Freeport Zone. Under the agreement, Aboitiz Equity and Mirant Industrial Power II Corp will each have a 20 pct equity in electricity distributor Subic Enerzone Corp. Davao Light & Power Corp, an Aboitiz unit, will own 40 pct. San Fernando Electric Light & Power Co will have a 10 pct stake, while Pampanga Sugar Development Co and Okeelanta Corp will each own 5.0 pct in Subic Enerzone. "As required by the distribution management services agreement, equity for Subic Enerzone will be 100 mln pesos," Aboitiz Equity told the stock exchange. The company said consumers in the freeport are expected to benefit from the rehabilitate-operate-transfer (ROT) arrangement given the 0.40 peso reduction in power distribution rates to 0.5975 per kilowatthour from the previous 1.00 peso per kwh. The rate will be fixed for five years. The group will also handle the rehabilitation, restructuring and expansion of the distribution system in Subic over a five-year period at an estimated cost of 368.00 mln pesos. (1 usd = 55.550 pesos) cecille.yap@afxasia.com |
| Philippines' Piltel COO resigns |
MANILA (AFX-ASIA) - Pilipino Telephone Corp (Piltel) said its board of directors has accepted the resignation of Augusto Macuja as chief operating officer, effective immediately. Piltel said Macuja's resignation will not have a material impact on its current or future operations nor on its financial position or results of operation. The company did not disclose the reason for Macuja's resignation and if a replacement has been approved by the board. edelacruz@afxasia.com |
| DATAWATCH - Philippine Sept export growth weaker than Asian peers - AB Capital |
MANILA (AFX-ASIA) - The Philippines' 2.3 pct year-on-year export growth in September may be a welcome respite after two months of consecutive decline, yet it is premature to say whether the improvement could be sustained, AB Capital research director Jose Vistan Jr said. He added the country's export growth remains weak compared with the robust trend enjoyed by its Asian peers such as Singapore, Taiwan and Thailand. "The country has been unable to attract investments into export-related industries. Part of it is due to political and security concerns. Failure to entice investments has hampered our export potential," Vistan said. Merchandise exports grew 2.30 pct year-on-year to 3.264 bln usd in September, and were up 0.40 pct to 26.267 bln usd for the nine months to September. Electronics exports, which accounts for 66.20 pct of total revenue for the month, registered an improvement of 0.90 pct in September to 2.162 bln usd. In contrast, Thailand posted a 6.7 pct year-on-year growth in September exports, while Singapore's non-oil export was up 25.9 pct. Taiwan's September exports order also improved by 20.4 pct. "It's not enough to conclude that things would turn around moving forward by simply looking at the September performance ... Second, the country's export growth continues to lag behind other countries in Asia," Vistan, who is projecting a full-year export growth of 2.0 pct year-on-year, said. "Other sectors of the economy would have to make up for the slack in exports if we are to achieve our economic growth targets for the year," Vistan said. The government is targeting a GDP growth of 4.2-5.2 pct and GNP improvement of 5.1-5.7 pct, and a 5.0-8.0 pct rise in exports this year. (1 usd = 55.587 pesos) cecille.yap@afxasia.com |
| STOCKWATCH - Philippines' PLDT firmer on ADR gain, ahead of Q3 results |
MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co was firmer early, tracking the strong overnight advance of its American Depositary Receipts (ADR) in New York on the back of expected strong third quarter earnings, dealers said. At 9.55 am, PLDT was up 40.00 pesos at 820.00 on volume of 104,510 shares. Its ADRs rose 0.65 usd to 14.45 last night. PLDT is expected to announce its results today, largely expected to show sustained strong gains in its wireless business, although the company may also report new provisions for the third quarter. PLDT likely booked new provisions in the third quarter, but remains confident of meeting its full-year net profit target of 9.00-10.00 bln pesos. Analysts AFX-Asia polled expect PLDT to report a third quarter to September net profit of 2.50-3.70 bln pesos before provisions. The forecast represents an earnings increase of as much as 164.00 pct over the 1.40 bln pesos posted in the third quarter of 2002. (1 usd = 55.587 pesos) edelacruz@afxasia.com |
| Philippines' Meralco defers payment of Q3 cash div on preferred shares |
MANILA (AFX-ASIA) - Manila Electric Co said its board of directors has approved to defer payment of cash dividends on preferred shares. The country's largest distributor said the decision was made due to the company's lack of unrestricted retained earnings during the period. No other details were provided. afxmanila@afxasia.com |
| Philippine Sept merchandise exports 3.264 bln usd, up 2.30 pct yr-on-yr |
MANILA (AFX-ASIA) - Merchandise exports in September grew 2.30 pct year-on-year to 3.264 bln usd, the National Statistics Office reported. In the nine months to September, exports grew 0.40 pct to 26.267 bln usd from 26.158 bln a year earlier. In August, exports declined 2.20 pct year-on-year to 2.966 bln usd. Electronics exports increased 0.90 pct in September to 2.162 bln usd, from 2.143 bln a year earlier, to account for 66.20 pct of total revenue for the month. Semiconductor exports improved 3.10 pct to 1.570 bln usd from 1.524 a year earlier, representing 48.10 pct of electronics exports. Apparel and clothing accessories remained the second highest contributor, with a share of 6.5 pct of total revenue in September and receipts of 212.6 mln, 18.10 pct lower year-on-year. Other products manufactured from materials imported on a consignment basis ranked third with total revenue of 62.55 mln usd, up 18.1 pct year-on-year. Exports of manufactured goods accounted for 88.20 pct of the September total, with receipts up 1.20 pct year-on-year at 2.878 bln usd. The NSO said exports to the US, which accounted for 19.20 pct of aggregate receipts in September, declined 24.90 pct to 627.73 mln usd from 835.38 mln a year earlier. Exports to Japan, accounting for 15.0 pct of receipts, rose 12.20 pct year-on-year to 490.02 mln usd. Hong Kong was the country's top third export market, accounting for 9.50 pct of the September total, with receipts up 20.40 pct to 310.78 mln usd from 258.22 mln a year earlier. (1 usd = 55.480 pesos) afxmanila@afxasia.com |
| Philippines' PLDT may consider management changes in next six mths - report |
MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT) may announce possible management changes within the next six months, the BusinessWorld newspaper reported, citing an unidentified source. The report said PLDT chairman Antonio Cojuangco may tender his resignation from the PLDT board in favor of PLDT president and chief executive officer Manuel Pangilinan. The report speculated that the current positions held by Pangilinan may be given to Napoleon Nazareno, president and chief executive officer of Smart Communications Inc, PLDT's main source of earnings. The report, however, quoted PLDT director Ray Espinosa as saying that any changes in PLDT management would not have anything to do with the firm's finances. He said there was no discussion about management changes during the board's most recent meeting held in September. Cojuangco leads a group of investors that recently acquired ownership of television network Associated Broadcasting Co (ABC 5). edelacruz@afxasia.com |
| Philippines expects to remain on CalPERS' list of investment sites - Camacho |
MANILA (AFX-ASIA) - The government expects the California Employees' Retirement System (CalPERS) to keep the country on its list of permissible investment sites next year, Finance Secretary Jose Isidro Camacho said. "We were able to clarify outstanding issues and I am hopeful that we will be kept in the list. We are working closely with CalPERS and its adviser Wilshire Consulting. We will also get in touch with third party sources of Wilshire," Camacho told reporters. A Philippine team led by Camacho met with CalPERS and Wilshire representatives last week. CalPERS, which manages around 133 bln usd in assets, including about 1.8 bln worth invested in emerging markets such as the Philippines, had earlier decided to keep the country on its investment list for an observation period of one year. CalPERS made the decision despite a recommendation by Wilshire to remove the country from the list. During the one-year "cure period", the Philippines is supposed to correct any deficiencies in its system, to qualify permanently as an investment site. Wilshire had given the country low scores in areas of market practices and business conduct. The government argued that the data used by Wilshire was inaccurate. afxmanila@afxasia.com |
| Philippines' Robinsons Land acquires prime lot in Fort Bonifacio - report |
MANILA (AFX-ASIA) - Robinsons Land Corp has acquired a 4,000-square meter prime property in the Fort Bonifacio Global City, which it intends to use for a high-end residential project, the Philippine Daily Inquirer reported, without identifying its source. The project is reportedly worth 1.0 bln pesos and will be completed in about three years. Robinsons Land, the property arm of the Gokongwei group, bought the property from Fort Bonifacio Development Co, developer of the 150-hectare Global City, which is controlled by Ayala Land Inc and the Campos group. (1 usd = 55.48 pesos) edelacruz@afxasia.com |
| Philippines' PCGG seeks re-freeze order on San Miguel shares - report |
MANILA (AFX-ASIA) - The government, through the Presidential Commission on Good Government (PCGG), has asked the Sandiganbayan anti-graft court to reinstate the writs of sequestration over a 20-pct block of shares in San Miguel Corp, the Philippine Daily Inquirer reported. The report said the PCGG has filed a motion for reconsideration with the Sandiganbayan, arguing that the court's earlier ruling on the disputed shares was "premature." The court had nullified the sequestration order the PCGG - care-taker of assets it believes the government owns - issued in 1986 on the San Miguel shares on the ground that only one PCGG commissioner signed and issued the writ. Under PCGG rules, a writ of sequestration should be issued on the authority of at least two commissioners. The PCGG also asked the court to take custody of the disputed shares "to protect the interest of the people," the report said. The government has been contesting ownership of a 47-pct block of shares in San Miguel, as it alleges that San Miguel chairman and chief executive officer Eduardo Cojuangco Jr, who has been allowed by the court to vote for the 20-pct block, used levies collected from coconut farmers during the Marcos administration to buy the shares. Cojuangco disputed the allegations, saying he acquired the shares using his own money. edelacruz@afxasia.com |
| Philippine Realty expects to cut debts to 1.0 bln pesos from 2.7 bln |
MANILA (AFX-ASIA) - Philippine Realty & Holdings Corp said it expects to cut down its debt to 1.0 bln pesos from 2.7 bln before the end of the year. "We have reached preliminary agreements on dacion (payment in kind) with two banks which we are submitting to the court for approval," the company said in a disclosure to the stock exchange. It gave no further details. (1 usd = 55.48 pesos) cecille.yap@afxasia.com |
| Philippines confident October budget deficit target will be met - Camacho |
MANILA (AFX-ASIA) - Finance Secretary Jose Isidro Camacho expressed confidence the budget deficit for October will be kept within target, denying earlier reports the ceiling may be breached for the third straight month. "We have agreed with the budget department that by the end of September they would exercise restraint on expenditures, starting October. Given that, I expect spending to be under control," he told reporters. Camacho said he is "still confident" the government will end the year within its full-year budget deficit target. Preliminary figures from the Bureau of Internal Revenue and the Bureau of Custom show the agencies have complied with their monthly revenue goals of 34. 0 bln pesos and 9.21 bln, respectively. The government's spending cap for the month has been set at 70.3 bln pesos. The government has so far kept its budget deficit within the 149-bln peso ceiling in the nine months to September at 142 bln pesos, despite "cautious" overspending in August and September. (1 usd = 55.48 pesos) cecille.yap@afxasia.com |
| Philippines military to declare red alert Nov 4 as political crisis looms |
MANILA (AFX-ASIA) - Philippine troops would be placed on the highest alert status to head off possible destabilization attempts amid a crisis surrounding an impeachment bid against the country's chief justice, a military spokesman said today. "The (military) will be declaring a red alert status effective tomorrow, November 4 starting at seven o'clock in the morning," military spokesman Lieutenant Colonel Daniel Lucero said. ` The red alert is the highest of a three-tiered alert level of the military. Lucero said the armed forces had received reports that militant groups were to take to the streets for massive rallies this week ahead of a meeting of the House of Representatives on November 10, when Supreme Court chief justice Hilario Davide is expected to be impeached for alleged misuse of funds. If the House succeeds in impeaching Davide, who has refused to open the judiciary's budget books to Congress, he would face a trial in the Senate and potentially be removed from office. "Purposely, this alert status is meant to prepare our civil management units for any eventual rallies that would be conducted by cause oriented groups," Lucero said, without elaborating. During the alert period, troops would not be allowed to take leave of absence and would be on call in their camps. Davide, while rejecting allegations of misuse of funds, says the legislature has no power to control the judiciary. The Supreme Court last week issued a writ against a potential impeachment. Experts say the standoff has led to a constitutional crisis, with President Gloria Arroyo herself calling on both parties to peacefully solve the row to avoid "divisiveness in the nation." Military spokesman Lucero assured the public that no soldier "will join any destabilization moves," in reaction to fears certain members of the armed forces could use the political crisis as an excuse to launch a power grab. "The (military) will be constitutional, we will strictly adhere to the chain of command," Lucero said. Politicians, civil society and militant groups are divided over the opposition-led impeachment bid, with Davide warning of serious repercussions to the vibrant democracy enjoyed by the Philippines if he were impeached. Arroyo in July survived a military uprising involving more than 300 soldiers and officers, and there have been fears of continuing restiveness in the armed forces. |
| Philippine Trust Co's capital hike plan approved by SEC |
MANILA (AFX-ASIA) - Philippine Trust Co said the Securities and Exchange Commission has approved its plan to increase its authorized capital stock to 17.00 bln pesos from 5.00 bln. "The record date of the issuance of shares as approved on October 27, 2003 is November 10, 2003, and the payment date is as required by the SEC which is 18 trading days from record date," PhilTrust said. No further details were provided. (1 usd = 55.48 pesos) afxmanila@afxasia.com |
| Philippine Napocor sees 2004 loss at 113 bln pesos vs 75 bln forecast this yr |
MANILA (AFX-ASIA) - State-owned National Power Corp said it expects to incur a net loss of as much as 113 bln pesos next year, up by about 51 pct from a projected net loss of 75 bln this year, even with the latest tariff increase ordered by the Energy Regulatory Commission. Napocor senior department manager for finance Lorna Dy said proceeds from the tariff increase and operational budget cuts are not enough to cover its losses. The ERC has granted Napocor provisional authority to raise generation charges on the main island of Luzon by 0.34 pesos per kilowatthour and in the Visayas area by 0.33 peso starting this month, ERC chairman Manuel Sanchez said. With the implementation of a new rate-setting formula, called the long-run avoidable cost (LRAC), Napocor's rates now stand at 2.4692 pesos per kWh in Luzon and 2.1258 pesos in the Visayas. Foreign exchange fluctuations and interest payments on its huge amount of foreign currency-denominated loans weigh heavily on Napocor, whose asset privatization program has long been delayed. As of end-June, Napocor was saddled with approximately 7.0 bln usd in debts, 800 mln more than the end-2001 level of 6.2 bln but lower than end-2002 level of 7.2 bln. Dy said Napocor will need some 165 bln pesos to cover its net financing requirement next year, including up to 1.0 bln usd for debt service and 1.0 bln usd for amortization of the capacity fees to independent power producers. (1 usd = 55.48 pesos) afxmanila@afxasia.com |
| Forex - Philippine peso closes weaker on across-the-board dollar strength |
MANILA (AFX-ASIA) - The peso closed weaker, but off lows, as it tracked the weakness of other regional currencies versus the US dollar, dealers said. Lingering political concerns related to the bid to impeach Supreme Court Chief Justice Hilario Davide Jr have also weighed on sentiment, they added. The peso closed at 55.480 after trading between 55.380 and 55.500 on volume of 125.00 mln usd. It closed at 55.315 yesterday. "The peso's weakness is expected to be temporary in the absence of huge demand for the dollars and ahead of remittances from overseas," a local bank dealer said. The US dollar performed stronger against the yen, staying above the 110. 00 yen level, on the back of a recovering US economy. Peso trading is seen largely dictated by its regional peers tomorrow. cecille.yap@afxasia.com |
| Philippines' DFNN says has SEC approval to list extra 27.0 mln common shares |
MANILA (AFX-ASIA) - Diversified Financial Network Inc said the Securities and Exchange Commission has approved its application to list 27.00 mln additional common shares. In a disclosure, DFNN said it has received verbal confirmation from the SEC's corporate finance department. "To date, we have not received written confirmation from the SEC regarding the above application," the company said. DFNN, in an earlier disclosure, said its board of directors had approved the issuing of 23.60-27.20 mln primary common shares to stockholders. It said each shareholder will be entitled to one offer share for every 2. 50 shares held as of the record date, which has yet to be announced. The offer shares are valued at 2.00 pesos each, it added. (1 usd = 55.435 pesos) cecille.yap@afxasia.com |
| US Marines begin joint operations in Philippines amid tight security |
CLARK, Philippines (AFX-ASIA) - Some 400 US Marines arrived in the Philippines today for joint training with Filipino troops amid intense security because of the threat of terrorist attack, the US military said. Colonel Steven Busby, co-director of the two-week maneuvers, told reporters the US troops will be restricted to camp because of the potential threat from Muslim militants linked to the al-Qaeda network and local communist insurgents. The US Marines are here for training and there will be "no liberty" for them during their stay in the country, Busby said after opening ceremonies at this former US airbase north of Manila. The 15-day exercises called Talon Vision involving the Americans and about 900 Filipino soldiers will see both forces training at an army base north of Manila and a Marine base just outside the capital. The US forces will use 20 military aircraft, mostly modern combat helicopters, in their training with local forces, Busby said. The training will not focus on counter-terrorism but said it will boost the capabilities of Filipino forces who are battling communist and Muslim separatist guerrillas, US Marine spokesman Captain Burell Parmer said. Among the local security concerns are Muslim rebels who are believed to have ties with the al-Qaeda terror network and the Jemaah Islamiyah group. Colonel Flaviano Valduheza of the Philippine air force, the co-director of the exercise, said that US and Filipino troops will be sharing tactics, techniques, and procedures and will jointly operate US and Philippine military aircraft and equipment. |
| Philippines' Aboitiz-led Subic Enerzone commences power supply business |
MANILA (AFX-ASIA) - The Aboitiz Equity Ventures-led Subic Enerzone Corp commenced its power supply business last Oct 25, AEV said. "This was the subject of earlier disclosures, and the only thing left to be confirmed was the effective date, which had to coincide with the metering reading dates of the generators supplying Subic (Freeport Zone), primarily (the National Power Corp)," it told the stock exchange. The Energy Regulatory Commission and the Subic Bay Metropolitan Authority have allowed Subic Enerzone to begin operations while the issue of who between them regulates the utility remains unresolved, AEV said. Subic Enerzone will reportedly spend 340 mln pesos over the next five years to improve power supply in Subic under a distribution management supply agreement that it signed with the authorities. The utility expects an annual income of 589 mln pesos. (1 usd = 55.435 pesos) edelacruz@afxasia.com |
| Philippines' Piltel 9 mths net loss 1.33 bln pesos vs loss 2.93 bln |
MANILA (AFX-ASIA) - Pilipino Telephone Corp said its nine months to September net loss dropped 55 pct to 1.33 bln pesos from a restated net loss of 2.93 bln a year earlier. Piltel had previously reported a January to September net loss of 2.85 bln in 2002. The cellular firm, an affiliate of dominant carrier Philippine Long Distance Telephone Co, said its GSM gross revenues in the nine months improved 28 pct to 4.87 bln pesos and net revenues rose 56 pct to 2.57 bln. GSM revenues comprise 91 pct of Piltel's total wireless subscriber revenues. Piltel said the subscriber base of its Talk N' Text wireless brand grew 52 pct year-on-year to 2.54 mln at end-September, with 320,000 new subscribers in the third quarter alone. Its churn rate dropped to 4.3 pct in the nine-month period from 6.1 pct a year earlier, due to the "over the air" reloading facility developed by affiliate Smart Communications Inc and launched in May for both Smart and Piltel prepaid subscribers. Its net operating revenues improved 35 pct to 3.128 bln pesos from 2.313 bln a year earlier. Piltel reported a 40 pct decrease in its operating expenses to 2.75 bln from 4.63 bln a year earlier, largely due to the 83 pct decline in depreciation charges resulting from the writedown of assets in end-2002. "The increase in revenues coupled with the reduction in operating expenses resulted in Piltel's registering an operating profit of 378 mln pesos for the first nine months of 2003, compared to an operating loss of 2. 319 bln for the same period in 2002," the company said in a report submitted to the Philippine Stock Exchange. Other expenses rose 178 pct year-on-year due to a foreign exchange loss of 1.0 bln pesos, compared with the year-earlier 155 mln pesos. Piltel also booked an impairment charge of 280 mln pesos for its investments in ACeS Philippines Cellular Satellite Corp. "We are encouraged that Piltel has posted another quarter of positive operating results... Without the effects of the foreign exchange losses and non-recurring items, the company's earnings before interest, tax, depreciation and amortization (EBITDA) was approximately 850 mln pesos," Piltel president and chief executive officer Greogorio Atienza said. He added: "These financial results, coupled with the strong subscriber growth, indicate that we are on the right track and given us optimism for Piltel's continued improvement." (1 usd = 55.435 pesos) cecille.yap@afxasia.com |
| Manila shares close mixed; telcos' gains lift index to new 18-mth high |
MANILA (AFX-ASIA) - Share prices closed mixed but sustained buying interest in "strong earners" such as telecommunications companies and shopping mall operator SM Prime Holdings Inc brought the composite index to a new high in more than 18 months, dealers said. Extended gains in heavyweights Philippine Long Distance Telephone Co and Globe Telecom Inc, ahead of their third quarter results, outweighed losses on profit-taking in select stocks, they said. The composite index closed up 12.52 points, or 0.89 pct, at 1,411.59 on volume of 272.00 mln shares valued at 821.55 mln pesos. It moved between 1, 395.16 and 1,416.16. It is the index highest close since April 11, 2002, when it finished at 1, 414.78. In the broader market, however, losers edged out gainers 29 to 21, with 39 stocks unchanged. Dealers said the improving economic environment in the US, the country's biggest trading partner, and expectations of increased consumer spending during the Christmas holidays and the election season sustained interest in select stocks. They, however, said caution prevails as political concerns arising from the rift between the House of Representatives and the Supreme Court over the impeachment of Supreme Court chief justice Hilario Davide Jr still weigh on sentiment. The market is cautious ahead of Nov 10 when Congress resumes session. Congressmen have agreed to pursue the impeachment case against Davide. However, there are media reports that some congressmen who had earlier participated in the impeachment of Davide have withdrawn their support for the case against him. "This is a continuation of last Friday's rally but limited to telecoms and other big issues such as SM Prime, which are all strong earners this year, " Accord Capital Equities analyst Lawrence de Leon said. "Investors are looking not just at the third quarter results but also at the full-year expectations." PLDT, which will announce its results tomorrow, was top traded and up 15. 00 pesos at 780.00 on volume of 269,440 shares. PLDT had indicated it likely booked new provisions in the third quarter, but remains confident that its full-year net profit will be within its own 9. 0-10.0 bln peso target. Barring any new provisions, analysts AFX-Asia polled expect PLDT to report a third quarter to September net profit of 2.50-3.70 bln pesos, against the year-earlier 1.40 bln, on the back of sustained gains in its wireless business. Globe, which is set to release its results on Nov 11, was up 20.00 at 810 on 128,580 shares. Analysts AFX-Asia polled expect Globe's gains in the wireless business to have pulled up its net profit to 1.60-2.60 bln pesos in the third quarter to September from 1.30 bln a year ago. SM Prime was up 0.20 at 7.20 on 18.35 mln shares, extending gains ahead of the release of its third quarter earnings and the opening of new SM malls, which are expected to sustain its double-digit growth in revenues, analysts said. SM Prime Holdings recently opened its SM City Mall in Lucena in the province of Quezon, and will two more - in Baguio City and in Bulacan on Nov 21 and 28, respectively - in time for the Christmas holidays. Ayala Land was down 0.10 at 6.40 on 17.07 mln shares, but parent Ayala Corp rose 0.10 to 5.20 on 11.05 mln shares. Manila Electric B, open to foreign investors, was down 0.25 at 20.25 on 1. 79 mln shares, while Meralco A dropped 0.25 to 13.75. Pilipino Telephone Corp was up 0.07 at 0.91 on 23.48 mln pesos after reporting that its net loss narrowed to 1.33 bln pesos in the nine months to September from a 2.85 bln loss a year ago. The all-shares index was up 7.92 points at 847.23. The commercial-industrial index rose 24.77 to 2,073.62 and property 3.47 to 626.30. Mining was down 32.76 at 1,726.69, while oil was up 0.08 at 1.39. Banking and financial services shed 2.69 to 443.55. Accord's de Leon said the market is due for profit-taking after sustained strong gains. (1 usd = 55.435 pesos) edelacruz@afxasia.com |
| Forex - Philippine peso weaker mid-morning on across-the-board dollar strength |
MANILA (AFX-ASIA) - The peso was slightly weaker mid-morning, trading in line with the weakness of other regional currencies versus the US dollar, dealers said. At 10.10 am, the peso has averaged 55.432 after trading between 55.380 and 55.460 on volume of 48.00 mln usd so far. It closed at 55.315 last Friday. "The US dollar has been fairly firmer across the board, and the peso is being pulled down by other regionals," a local bank dealer said. The local unit is not however expected to weaken further in the absence of strong dollar demand, the dealer added. The peso is seen supported at the 55.200 level, while resistance is at 55. 600. cecille.yap@afxasia.com |
| Philippine hotels' Jan-Aug avg occupancy rate 56.91 pct vs yr-ago 60.35 pct |
MANILA (AFX-ASIA) - The average occupancy rate of hotels in metropolitan Manila for January to August fell to 56.91 pct from 60.35 pct a year earlier, latest data from the Tourism department show. Guests' average length of stay was also 3.36 pct shorter at 2.59 nights. De luxe hotels' occupancy rate for the eight-month period stood at 57.75 pct of total available rooms, down from 63.96 pct a year earlier. The occupancy rate of first class and standard hotels also dropped 0.14 and 2.02 pct, respectively. Among the hotel classes, only economy hotels registered a positive growth to 54.02 pct from 41.56 pct during the same period in 2002. For the month of August alone, the average occupancy rate was however up 5.55 pct year-on-year at 60.24 pct. cecille.yap@afxasia.com |
| STOCKWATCH - Philippines' SM Prime gains ahead of Q3 results |
MANILA (AFX-ASIA) - SM Prime Holdings Inc extended its rally ahead of the release of its third quarter earnings and the opening of new SM malls, with investors expecting the shopping mall operator to sustain its double-digit growth this year, dealers said. They said the company's move to open more malls supports expectations of increased revenues this year and moving forward. At 10.40 am, SM Prime was top traded and up 0.30 pesos, or 4.17 pct, at 7. 50 on volume of 11.63 mln shares. The composite index was up 7.03 points, or 0.50 pct, at 1,406.10. SM Prime Holdings recently opened its SM City Mall in Lucena in the province of Quezon, one of three malls the company will open this year. The company said it is also set to open malls in Baguio City and in Bulacan on Nov 21 and 28, respectively, in time for the Christmas holidays. By the end of the year, SM Prime will have 17 malls. "Investors are expecting the company to sustain its double-digit growth this year and in the coming years with the opening of new malls. It is expected to enjoy healthy revenue rentals of spaces in the malls," said Accord Capital Equities analyst Lawrence de Leon. SM Prime booked a net profit of 2.83 bln pesos in the nine months to September 2002, up 9 pct year-on-year, aided by a 12 pct rise in revenue to 5. 787 bln. For the whole of 2002, net profit rose 11 pct year-on-year to 3.86 bln pesos on the back of a 12 pct growth in consolidated revenue. (1 usd = 55.43 pesos) edelacruz@afxasia.com |
| Philippines' Sinophil Corp 9 mths net loss 2.40 mln pesos vs profit 11.2 mln |
MANILA (AFX-ASIA) - Sinophil Corp said it incurred a net loss of 2.40 mln pesos in the nine months to September after booking 11.20 mln net profit in the same period in 2002. It said its year-ago net profit was mainly due to non-recurring gains from sales of its minority interest in MagiNet Co Ltd to Pacific Gate Co Ltd in June 2002, and a gain of 10.50 mln pesos from the sale of shares in e-Room Corp to an investors group in September of that year. The gains from the sale of investments in 2002 were, however, offset by net losses in investees of about 21.0 mln pesos. "In contrast, there were no gains from sales of investments during the 2003 period. As of Sept 30, 2003, there were no significant elements of income or loss...that (arose) from continuing operations, nor were there any seasonal aspects that had a material effect on the results of operations of Sinophil," it said in its financial statement. The oil energy exploration and investments firm did not provide the breakdown of its results. (1 usd = 55.392 pesos) edelacruz@afxasia.com |
| Philippines' Jan-Sept tourist arrivals down 8.00 pct yr-on-yr |
MANILA (AFX-ASIA) - Tourists arrivals in the Philippines in the nine months to September fell 8.00 pct to 1.330 mln from 1.445 mln a year earlier, latest figures from the Tourism department show. In September alone, arrivals improved 2.50 pct year-on-year to 140,652 from 137,201 in the same month last year. Majority of the tourists came from Asia, data show. cecille.yap@afxasia.com |
| Philippines' Globe Telecom to release Q3 results on Nov 11 |
MANILA (AFX-ASIA) - Globe Telecom Inc said it will release its third quarter financial and operating results on Nov 11. The company will also hold an investors' briefing on the same day to present its analysis of the results, immediate plans and prospects. Analysts AFX-Asia polled expect Globe to report a net profit of 1.60-2.60 bln pesos in the third quarter to September, exceeding the year-ago profit of 1.30 bln, on the back of sustained gains in the wireless business. This means Globe's nine months to September net profit will be in the range of 6.0-7.0 bln pesos, up from 4.30 bln in the same period last year, they said. After having maintained its dominance in the postpaid wireless market, analysts said the company has begun to focus on widening its prepaid segment by introducing its own low-cost prepaid reload service. Such a strategy has helped boost earnings of rival Smart Communications Inc, a unit of Philippine Long Distance Telephone Co. (1 usd = 55.38 pesos) |
| Philippines' San Miguel protests BIR tax ruling - report |
MANILA (AFX-ASIA) - San Miguel Corp is protesting the Bureau of Internal Revenue's ruling declaring it must pay 1.5 bln pesos in additional tax for registering its San Mig Light beer as a new brand and not just a variant of its pale pilsen brand, the Philippine Daily Inquirer reported. The report quoted an unidentified BIR official as saying, however, that San Miguel's protest should not stop the agency from collecting on the alleged tax deficiency and the new tax rates. San Miguel has maintained that San Mig Light was a new brand and that it should continue paying the tax for this brand at 10.25 pesos per liter and not the 19.91-peso rate imposed on variants. (1 usd = 55.315 pesos) edelacruz@afxasia.com |
| Philippine govt readies 300 mln usd treasury bond issue - report |
MANILA (AFX-ASIA) - The government is looking to issue 150-300 mln usd worth of short-term dollar-denominated treasury bonds as part of the pre-funding activities for its 2004 financing requirements, the Philippine Daily Inquirer quoted an unidentified banking source as saying. "The minimum amount (for the offer) is 150 mln usd but the government said it could issue as much as 300 mln usd," the source said. The government is seeking to cover before the end of the year up to 1.0 bln usd of the 1.8 bln usd in foreign financing requirement for next year. It has already raised about 800 mln usd from the recent sale of 1.05 bln usd worth of long-term bonds. The report said the government has asked at least seven foreign and local banks to submit underwriting proposals for the bond issue, including First Metro Investment Bank, Land Bank of the Philippines, edelacruz@afxasia.com |
| Philippine govt may exceed 2003 budget deficit ceiling - report |
MANILA (AFX-ASIA) - The government may exceed its 2003 budget deficit ceiling of 202 bln pesos by as much as 8.0 bln if it continues to spend beyond programmed monthly levels, the Philippine Daily Inquirer quoted an unidentified government source as saying. The budget deficit stood at 29.138 bln pesos in September, exceeding the ceiling of 22.000 bln, as the government continued to spend more to spur economic activities. In the first nine months of the year the deficit came in at 142.703 bln pesos, below the ceiling of 149.539 bln. Finance Secretary Jose Isidro Camacho had assured that the government remains firm in keeping the full-year budget deficit within the target. The government had promised restrained spending from October. (1 usd = 55.315 pesos) edelacruz@afxasia.com |
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