Meralco profit drops on lack of one-time gains

 Economy
Jul 252016
 
Meralco profit drops on lack of one-time gains

Company officials maintained that full-year income would be similar to last year’s figure. STAR/File photo MANILA, Philippines – Power utility giant Manila Electric Co. (Meralco) reported lower earnings in the first half of 2016 due the absence of one-off recovery gains and lower distribution tariff. Company officials maintained that full-year income would be similar to last year’s figure. In a briefing yesterday, Meralco SVP and CFO Betty Siy-Yap said first half net income reached P10.4 billion, down 11 percent from P11.8 billion. Reported net income likewise slipped eight percent to P10.8 billion. “Last year, we had a regulatory approval of the GRAM, which provided an income. There was a one-off item in 2015 which wasn’t seen this year. We had the generation rate adjustment mechanism (GRAM),” she said. The GRAM amounted to around P800 million, a recovery from the 2003 to 2004 period which was only recovered in the first half of last year. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Another factor that pulled the company’s income is lower distribution rate which began July 1, 2015, Meralco president Oscar Reyes said. “Meralco took initiative of reducing its distribution tariff from P1.58 per kilowatt-hour to P1.38 per kwh in July 2015, following the completion of the third regulatory period. So second half 2015 to second half 2016, the tariff is at the same level already,” he said. Total energy sales for the first semester grew 11 percent year-on-year to 19,717 gigawatt-hours (gwh), with the highest single month consolidated Read More …

SONA optimism boosts share prices

 Economy
Jul 252016
 
SONA optimism boosts share prices

The Philippine Stock Exchange index (PSEi) gained 0.30 percent or 23.78 points to close 8,049.13, while the broader All Shares index inched up 0.27 percent or 12.95 points to settle 4,806.98. Philstar.com/File Photo MANILA, Philippines – Local share prices climbed yesterday on optimism on President Duterte’s first State of the Nation Address (SONA) which came later in the day. The Philippine Stock Exchange index (PSEi) gained 0.30 percent or 23.78 points to close 8,049.13, while the broader All Shares index inched up 0.27 percent or 12.95 points to settle 4,806.98. Analysts said all eyes were on the SONA yesterday, and investors were “positively” looking forward to what the President has to say. “The trading week begins with President Duterte’s first SONA, coming half an hour after  the market closes. Markets should be hearing for  the first time the new government’s comprehensive plan – a chance to gauge whether it is putting  money where its mouth is, so to speak,” A&A Securities research head Justino Calaycay Jr. said. With optimism running high, all local counters except for the mining and oil finished in the positive territory. Financial companies were the biggest winners, gaining 0.83 percent or 15.08 points. Mining and oil firms, however, lost 0.60 percent or 67.56 points. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Market breadth was positive as advancers pummeled decliners, 115 to 85, while 45 stocks were unchanged. Value turnover was robust at P10.18 billion. “As the index trades at all-time high amid continued net Read More …

Ready, set, IPO!

 Economy
Jul 242016
 

(Second of two parts) In last week’s column, we talked about how companies see an initial public offering (IPO) as a crowning achievement for the organization, and yet the reality is that an IPO should be seen as a milestone and not an end in itself. We also discussed the challenges that family-owned businesses face when considering an IPO. In this column, we will look into eight key areas that a company has to consider in assessing their readiness for an IPO, as discussed in the publication, EY IPO leaders’ insights.

Philippines likely to remain world’s contact center capital

 Economy
Jul 242016
 
Philippines likely to remain world’s contact center capital

MANILA, Philippines – Sorry India, but the Philippines is likely to keep its crown as the world’s contact center capital for more years to come. Industry experts told The STAR there is a very slim chance the Philippines would be dethroned as the global leader in call center operations over the next five years. “The Philippines at least for the foreseeable future will continue to be leader in the voice segment. I don’t see that going anywhere. Five years definitely, but 10 to 15 years I don’t want to bet on that because you don’t know how technologies will change and how the new generation of people will use communication,” said Nitin Bhat, senior partner at Frost and Sullivan, the consultancy firm crafting the roadmap with Information Technology and Business Process Association of the Philippines (IBPAP). “That’s our intention (to sustain our number one spot) and I think it’s not unrealistic,” Contact Center Association of the Philippines president and IBPAP executive committee chairman Benedict Hernandez added. Hernandez said the Philippines snatched the world’s biggest call center title from India in 2010 and the country has not let go of it since. At present, India remains second behind the Philippines while other market are also growing. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “You have India and the Philippines, but Philippines is positioned much better because of English language skills, the customer service orientation that they see in the Philippines, as well as the English accent which is a Read More …

Share prices may succumb to profit taking

 Economy
Jul 242016
 
Share prices may succumb to profit taking

The benchmark Philippine Stock Exchange index (PSEi) is seen ranging from 7,500 to 8,450 with target resistance at 8,136, said Victor Felix, equity analyst at AB Capital. File photo MANILA, Philippines – The stock market may see some profit taking this week ahead of the so-called ghost month of August, analysts said. The benchmark Philippine Stock Exchange index (PSEi) is seen ranging from 7,500 to 8,450 with target resistance at 8,136, said Victor Felix, equity analyst at AB Capital. Felix said primary support is seen at 7,950 while secondary support is seen at 7,850. Felix said investors would be keeping a close watch on President Duterte’s State of the Nation Address on Monday. Depending on his pronouncements, the SONA can push the index higher, Felix said. “Overall, the PSEi may be experiencing an overwhelming bullish sentiment as well as favorable technical formation for the bulls. Thus, we caution for an investing mindset at these levels; meanwhile, momentum and range trading are the most effective strategies in an indecisive market movement. Next week, the president’s SONA will provide for either a boost in bullish sentiments or start a major correction,” Felix said. Last week, the market closed on a near 15th month high amid a string of positive news. These include Japan’s stimulus bets, the move of the European Central Bank to keep rates steady and the generally positive second quarter earnings. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Felix said companies are expected to continue reporting positive corporate Read More …

P35M worth of investments generated in GenSan biz fair – DTI

 Economy
Jul 242016
 
P35M worth of investments generated in GenSan biz fair - DTI

Dozens of entrepreneurs joined the “business-matching dialogue” during the July 13-15 trade fair of the Department of Trade and Industry in Gen. Santos City. JOHN UNSON KORONADAL CITY — The July 13-15 joint business fair in General Santos City by private groups and the Department of Trade and Industry (DTI) generated P35 million worth of investments, DTI’s regional office here said. In an email on Saturday, DTI’s office in Soccsksargen (Region 12) said the activity also generated P5 million worth of sales by participating entrepreneurs and private trading groups. The three-day event, held at a shopping mall in General Santos City, was dubbed Negosyo Konsyumer ATBP (NKATBP), which involved traders and entrepreneurs from central Mindanao’s South Cotabato-Sultan Kudarat-Sarangani and General Santos geographical economic corridor. The fair was also capped off with “business-matching” activities, focused on livestock, orchard and short-term crop ventures. DTI said P1.8 million was generated by the “Diskwento Caravan” during the three-day fair, where participants sold various merchandise in designated booths with high discount rates. A trade and consumer fair that featured products from provinces in the region had raked in P3.8 million worth of sales during the three-day activity.

G20 countries pledge to boost growth, dampen Brexit shock

 Economy
Jul 242016
 
G20 countries pledge to boost growth, dampen Brexit shock

G20 Finance Ministers and Central Bank Governors pose for a group photo in Chengdu in Southwestern China’s Sichuan province, Sunday, July 24, 2016. Finance Ministers and Central Bank Governors of the 20 most developed economies met in the southwestern city of Chengdu ahead of a G20 leaders meeting in September hosted by China. Participants in the front row are, from left: Britain’s Chancellor of the Exchequer Philip Hammond, World Bank President Jim Yong Kim, an unidentified member, Turkey’s Deputy Prime Minister Mehmet Simsek, China’s Finance Minister Lou Jiwei, China’s People’s Bank of China Governor Zhou Xiaochuan, Germany’s Federal Minister of Finance Wolfgang Schauble, International Monetary Fund Managing Director Christine Lagarde and OECD Secretary-General Angel Gurria. AP/Ng Han Guan, Pool BEIJING  — Finance officials of major economies have pledged to boost sluggish global economic growth and defend against the shockwaves of Britain’s exit from the European Union. Envoys from the Group of 20 major economies ended a two-day meeting Sunday with a pledge to use government spending and regulatory reforms to strengthen growth but announced no joint action. Governments at the meeting, which included Britain, called for a “close partnership” between that country and its European neighbors if the British government follows through on plans to leave the trade bloc. They said the British vote to leave the EU has caused turmoil in global markets but that they have taken steps to limit its impact.

The wave of the future

 Economy
Jul 232016
 
The wave of the future

Let me ask you a question. Are you the type of leader who is more comfortable with: 1. A formal dress code? 2. Strict adherence to decorum? 3. Executive suites or corner offices? 4. Prefer to be addressed as Sir or Mam? 5. Fixed working hours? If you do, then you belong to the industrial type of executives. Most people from the Baby Boomer generation belong to this group. You value respect. You respect authority. You expect to be respected because you represent authority. You are frugal and you value hard work. In fact, you most likely value work even a little bit more than family or personal life. You reason that hard work and the fruit of it is what contributes to a good family life. Now, let me switch on to a different scenario. Maybe you are the kind of leader who believes that business should be based on the following scenario: 1. Authority should be questioned. 2. Hierarchy should be circumvented. 3. Non-conformity should be admired. 4. Creativity should be nurtured. 5. Work performance, delivery of results count more than how you look and the way you work in order to achieve results. 6. You want more flexible time. 7. For you, work is just one major compartment of life while fun and play is another. When you compare the two lists, one thing will emerge. The first list where most Baby Boomers belong are loyal, faithful soldiers who work their way up the corporate ladder and Read More …

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