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Phl payments position swings to $336-M deficit in March

General

Apr 212014

Phl payments position swings to $336-M deficit in March

MANILA, Philippines – The country’s balance of payments position swung to a deficit in March following a recovery in February, the Bangko Sentral ng Pilipinas reported yesterday. “The BOP deficit for March was largely due to foreign-currency debt repayments of the National Government and BSP’s foreign-exchange operations,” BSP Governor Amando M. Tetangco Jr. said in a text message to reporters. The deficit stood at $336 million in March, a turnaround from the $452-million surplus recorded in the same month last year. The latest figure was also a reversal of the $345-million surplus recorded in February. The BOP shows a summary of a country’s transactions with the rest of the world. A deficit in the BOP cuts the country’s foreign exchange reserve, which serves as a cushion against external shocks. The March level brought the first-quarter BOP deficit to $4.471 billion, a reversal of the $1.537-billion surplus in the same period last year. “The cumulative deficit for the first quarter stemmed principally from net outflows in foreign portfolio investments in market reaction to uncertainty over the pace of tapering of the Fed’s quantitative easing measures,” Tetangco said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 He added that a higher balance of trade deficit also contributed to the BOP deficit during the quarter. The US Federal Reserve in January has started scaling back its monthly massive asset purchases following positive US economic data. This has caused volatility in global financial markets because when fully taken out will result in higher Read More …

Century pegs IPO price at P13.75

Economy

Apr 212014

MANILA, Philippines – Century Pacific Food Inc. of the Po family has pegged the selling price of its shares at P13.75, the upper end of the indicative price range. The country’s largest canned goods producer stands to raise P3.16 billion in the second initial public offering (IPO) this year. In a text message, Eduardo V. Francisco, president of underwriter BDO Capital & Investment Corp., said the final offer price is near at the high end of the P12.50 – P14.50 target. Century Pacific will raise P3.157 billion in fresh capital from the sale of 229.654 million shares from April 23 to 29. The company’s shares will debut on the main board of the Philippine Stock Exchange on May 6. Proceeds of the IPO will be used to pay short-term obligations, complete a tin can manufacturing factory and dairy mix plant facility in Taguig, and support general working capital given an intensified marketing and sales initiative or possible acquisition. Nisha S. Alicer, research strategist at DA Market Securities, said Century Pacific is a value stock, with the P12.50 P14.50 price range representing a 18.6x-21.9x 2014 price-to-earnings ratio, lower than the industry average of 22.9x. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Century Pacific is banking on its market leadership in the consumer-based Philippine economy, and multi-category, multi-brand product portfolio with a strong record of product innovation and successful new product introduction. The company also has a “multi-pronged growth strategy through cost improvement, expansion of distribution network and achieving economies Read More …

AVID sales up 13% in 1st qtr

Economy

Apr 212014

MANILA, Philippines – The country’s vehicle importers achieved a 13 percent growth in sales in the first quarter compared to a year ago amid strong performance of both the passenger car (PC) and light commercial vehicle (LCV) segments. In a statement, the Association of Vehicle Importers and Distributors, Inc. (AVID) said it sold 9,055 units in the first quarter, up from the 7,990 units sold in the same period last year. The group’s PC sales rose 13 percent to 4,558 units as of end-March from the 4,016 units sold in the comparable period in 2013. LCV sales also posted a 13 percent increase to 4,497 units in the January to March period compared to the 3,974 units sold in the same period in the previous year. For the month of March alone, total sales of the AVID reached 3,189 units, 5.35 percent higher than the 3,027 units sold in the same month last year. PC sales however, declined 1.51 percent to 1,568 units in March from 1,592 units sold in the same month a year ago. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 LCV sales climbed 12.96 percent to 1,621 units last month from the 1,435 units sold in March 2013. Compared to February’s 2,675 units, the AVID’s total sales in March posted a 19 percent uptick. AVID is confident the positive sales performance in the first three months of the year would be sustained for the rest of the year. “With AVID finishing the Q1 (first quarter) Read More …

Philrealty in the black for second straight year

Economy

Apr 212014

Philrealty in the black for second straight year

MANILA, Philippines – Listed real estate firm Philippine Realty Corp., fresh from exiting a court-assisted corporate rehabilitation, has recorded its second consecutive year in the black. In a regulatory filing, Philrealty said its net income hit P39.35 million last year, up from P4.22 million in 2012 and a reversal of the P212.6-million net loss in 2011. Income from rent, real estate sales, management fees, interest income and commission sank 23 percent to P364.27 million from P475.22 million in 2012. “Sales of Skyline Tower slowed down as fewer units became available to buyers while new sales were booked on sale of Icon Plaza units which is 74.28 percent completed as of yearend,” Philrealty said. Rental income of subsidiary PRHC Property Managers Inc. improved due to escalation in rental rate, the firm said. However, Philrealty said its costs and expenses eased at a faster pace to P325.59 million, down 32 percent from P482.74 million a year ago. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Reeling under debt for 12 years, the property firm exited a corporate rehabilitation program early this month and committed to capitalize on a resurgent real estate market. To regain its prominence as a leading high-end property developer, Philrealty is fasttracking the completion of the second of five towers to rise at the P250-billion Andrea North in New Manila, Quezon City. The company needs to raise P700 million to complete construction of Sky Villas, which will offer about 108 units in 31 floors and targeted for turnover Read More …

Index surges past 6,700-pt level

General

Apr 212014

MANILA, Philippines – Positive developments abroad during the Lenten holidays carried the benchmark index past the 6,700 level for the first time this year. The Philippine Stock Exchange index (PSEi) climbed 1.44 percent or 96.33 points to 6,767.51, its best since closing at 6,800.11 on July 25, 2013. The broader all shares index jumped 1.26 percent or 50.74 points to 4,063.77. “A favorable newsfront over an extended Lenten weekend delivered positive impetus to this week’s opening trades, extending the PSEi’s winning run to a third day and validating the 6,570 to 6,600 support band,” said Justino Calaycay Jr., an analyst at Accord Capital Equities Corp. “This is a positive reaction to international markets, which strongly moved up over the long weekend and Lenten break due to positive economic data in the US,” Nisha S. Alicer, research strategist at DA Market Securities, said in a text message. For instance, tensions in the Ukraine eased following a pact reached by the Western allies and Russia, Calaycay said, adding that positive numbers emerged from the US on the jobs and manufacturing fronts. In contrast, Asian markets lacked buying leads and closed silently yesterday. Japan’s Nikkei 225 slightly fell 0.03 percent or 3.89 points to 14,512.38. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In the local scene, all counters ended in positive territory, paced by the service sector that rallied 2.22 percent or 43.69 points to 2,014.24 while property firms surged 2.21 percent or 57.59 points to 2,663.10. “Locally, we’re getting positive Read More …

FEU expands into secondary education

Economy

Apr 192014

MANILA, Philippines – Far Eastern University (FEU) of the Montinola family is expanding into secondary education. In a disclosure, the listed educational institution said its board of trustees authorized the formation and incorporation of subsidiary FEU High School Inc. FEU High School “will offer and conduct enhanced basic education programs and authorizes the said subsidiary to use the term FEU in its corporate and brand names,” the company said. The new subsidiary will have an authorized capital stock of P40 million, divided into 400,000 shares with a par value of P100 apiece. Its incorporators were Michael M. Alba, Juan Miguel R. Montinola, Paulino Y. Tan, Aurelio R. Montinola III and Glenn Z. Nagal. “The board approved the subscription of the corporation of 99,995 shares in FEU High School with the par value of P100 per share, and of which P2.49 million will be paid,” FEU said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The government is already implementing the K to 12 program, which is composed of kindergarten and 12 years of elementary and secondary education. The additional two years in high school will serve as specialization period for high school students whether in vocational skills, music, arts or sports. FEU, founded in 1928, is a private non-sectarian institution composed of different institutes that offer specific courses. These institutes are the Institute of Arts and Sciences; the Institute of Accounts, Business and Finance; the Institute of Tourism and Hotel Management; Institute of Education; the Institute of Architecture and Read More …

San Miguel set to start work on Boracay airport

Economy

Apr 192014

San Miguel set to start work on Boracay airport

MANILA, Philippines – Diversified conglomerate San Miguel Corp. (SMC) will start work on the Boracay airport within the first half of the year to allow the country’s seventh busiest airport to accommodate larger aircraft amid the growing number of tourists to the world-renowned beach island. In its disclosure to the Philippine Stock Exchange, SMC said the extension of the runway of the Boracay airport, also known as Godofredo P. Ramos Airport, is on schedule as preparatory work at the site are ongoing. The company said construction is targeted to start within the first half and preparatory work for the new terminal is scheduled to proceed in the fourth quarter of the year. “Once the project is complete by 2016, the Boracay airport will be able to accommodate larger aircraft, boosting tourism not just to the country’s top tourist destination, but also to the rest of the Visayas region,” SMC said. Data showed that tourist arrivals in Boracay Island in Aklan jumped 13 percent to 1.363 million last year from 1.206 million in 2012. SMC has a 99.72 percent interest in Trans Aire Development Holdings Corp. (TADHC) that holds a 25-year concession to operate the Boracay airport. It holds the exclusive rights, obligations and privileges to finance, design, construct, operate and maintain the airport by virtue of a concession agreement with the DOTC and the Civil Aviation Authority of the Philippines (CAAP). Business ( Article MRec ), pagematch: 1, sectionmatch: 1 TADHC is currently overseeing the modernization of the airport. Long-term Read More …

Kuok property unit breaches P2-B profit mark in 2013

Economy

Apr 192014

Kuok property unit breaches P2-B profit mark in 2013

MANILA, Philippines – The local property unit of Malaysia’s Kuok Group breached the P2-billion net income level last year on the back of higher sales from its upscale condominium projects. In a regulatory filing, Shang Properties Inc. said its consolidated net income hit P2.01 billion, up 22 percent from P1.64 billion in 2012. “The group’s gross revenue increased by 27.8 percent to P6.9 billion in 2013 from P5.4 billion mainly due to higher revenue from the sale of condominium units and higher rental income from mall and office leasing operations,” Shang Properties said. In particular, revenues from condominium projects jumped 46 percent to P3.93 billion from P2.69 billion due to higher sales recognized from One Shangri-La Place and Shang Salcedo Place projects. The 64-story Shang Salcedo Place is located on a 3,045-square meter (sqm) lot in Makati’s Salcedo Village. Estimated to cost around P5 billion, the project offers a total of 778 units, targeted for turnover to residents by 2015. One Shangri-La Place, the company’s largest development to date, is targeted for completion this year. It is composed of twin skyscrapers housing 1,304 units above the six-level Shangri-La mall expansion. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Shangri-La Plaza’s growth of P343 million was mainly due to the revenue generated by the newly opened East Wing Mall and rental escalation of the existing mall,” the company said. The office leasing operations at The Enterprise Center in Makati picked up 20 percent to P803.8 million on the back of Read More …

SEC reminds companies on financial reporting

Economy

Apr 192014

SEC reminds companies on financial reporting

MANILA, Philippines – The country’s corporate watchdog has reminded companies to comply with the strict rules on financial reporting obligations. In a public notice, the Securities and Exchange Commission (SEC) said the board of directors and management of registered corporations are required to strictly observe their responsibilities over the preparation and submission of their annual financial statements. “The Commission firmly believes that it has set sufficient regulations and has actively conducted administrative actions towards a change in the old culture in financial reporting that incorrectly allowed external auditors to prepare and review the financial statements at the same time,” said SEC chairperson Teresita J. Herbosa. Corporations and external auditors must strictly observe their respective responsibilities over financial statements, Herbosa said, adding that appropriate penalties will be imposed on erring entities. Listed firms are required to submit quarterly and annual financial reports to the SEC and the Philippine Stock Exchange. Under the Securities Regulation Code, companies’ financial statements are primarily the responsibility of their respective management. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “The board of directors reviews and approves the financial statements before these are submitted to the stockholders,” SEC said. SEC said that during the independent examination of the financial statements, the management should provide the external auditor with the complete set of financial statements. “In order to have an independent review of the financial statements prepared by the management, the external auditor must not create a template format of financial statements for mere accomplishment by the Read More …

Villar water utility firm to ink Zambo ecozone deal

Economy

Apr 192014

Villar water utility firm to ink Zambo ecozone deal

MANILA, Philippines – Villar-owned Prime Water Infrastructure Corp. is set to sign a deal with the Zamboanga City Special Economic Zone Authority (Zamboecozone) and Freeport for the supply of water and water treatment services in the ecozone. In a statement, Zamboecozone said the agreement, which would be signed by former Sen. Manuel Villar and Zamboecozone chairperson and administrator Christopher Lawrence Arnuco tomorrow, covers the construction and management of a water treatment facility and bulk water supply project with an investment of over P742 million. Under the deal, Prime Water would treat and supply 50,000 cubic meters a day of water to the Zamboanga City Water District for distribution to the residents in the city’s west coast, particularly in the Ayala district, as well as 15,000 cubic meters per day of water to the Zamboecozone and Freeport. The deal likewise covers forest protection in the ecozone. The construction work is expected to start by July and would be completed within a year. “It is expected to generate hundreds of jobs for the residents in the area during its construction phase, and an average 15 committed employment every year of its 30-year project life,” Zamboecozone said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The deal is expected to generate employment and attract investments to the ecozone. The Zamboecozone and Freeport, which covers about 16,000 hectares, hosts 15 companies with total committed investments worth P10 billion. Firms which invest in the economic zone could enjoy income tax holidays, duty-free importation of Read More …

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