Maniolas

MANILA, Philippines – Phoenix Petroleum Philippines Inc., an independent oil company, is issuing P1.5 billion worth of short-term commercial papers after earlier issuing P2 billion also in short-term papers. Philippine Rating Services Corp. (PhilRatings), the local debt watcher, assigned an Issue Credit Rating of PRS 2 (minus) to Phoenix’ latest issuance. “The total STCP amount rated by PhilRatings in relation to Phoenix Petroleum is now at P3.5 billion, having rated an earlier STCP issue amounting to P2 billion,” Philratings said. According to Philratings, obligations rated PRS 2 exhibit above average capability for payment of both interest and principal. “This is normally evidenced by many characteristics of a PRS 1 rating but to a lesser degree. Earning trends and coverage ratios, while sound, will be more subject to variations. Capitalization characteristics, while still appropriate, may be more affected by external conditions,” Philratings said. The local debt watcher attributed the rating to the oil company’s ability to generate revenues among other factors. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Phoenix Petroleum’s business operations are able to generate substantial revenues, with profitability expected to improve going forward with its adequate liquidity and financial flexibility, and competent and experienced management team,” Philratings said. The local credit rating agency also said that Phoenix’ network expansion would likely strengthen its position in the market. Phoenix Petroleum is an independent oil company with a market share of four percent as of the first half of 2014. As of Sept. 30, the company has a total Read More …

MANILA, Philippines – Manufacturing output likely expanded by a slower five percent in October, Moody’s Analytics said, as the sector continues to reflect the cooling economy. “Industrial production has slowed in recent months, mirroring the broader economy’s cooling. Fixed investment from both the public and private sectors has weakened through 2014, partly as a result of the slowdown in government approval of new infrastructure projects,” Moody’s Analytics said in a research note. “Solid export demand and continued remittances from overseas should lift production in the coming months,” the firm added. Official October manufacturing data will be released on Wednesday. Latest data showed factory output, as measured by the volume of production index, eased further to 3.2 percent in September from 6.6 percent in August and 8.1 percent in July. This was due to the decrease in the production of wood and wood products, furniture and fixtures, transport equipment, footwear and wearing apparel, tobacco products, and electrical machinery, among others. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Increases in the production of printing, beverages, fabricated metal products, leather products, petroleum products, and machinery except electrical products lifted factory output during the period. Meanwhile, the value of production index only went up 3.8 percent in September, also a deceleration from 5.2 percent in August and 6.4 percent in July. Data showed this was amid a decline in wood and wood products, miscellaneous manufactures, footwear and wearing apparel, transport equipment, and basic metals, among others.

MANILA, Philippines – Food processing giant Del Monte Pacific Ltd. (DMPL), a company listed in both Singapore and the Philippines, has decided to tap foreign investors for its preferred shares sale worth $360 million. In a disclosure to the local bourse late Friday, DMPL said it intends to conduct an international offering of up to $360 million to institutional investors. Based on an earlier filing with the Philippines’ Securities and Exchange Commission (SEC), DMPL was seeking approval to sell 36 million preferred shares at an indicative price of $10 a piece. The company intends to list the shares on the Singapore Exchange Securities Trading Ltd (SGX- ST) and has already submitted an application for the shares’ listing. “The company intends to pursue this international offering in lieu of the previously disclosed Philippine offering for timing and market considerations,” the firm said. DMPL said proceeds of the offering would be used to refinance the company’s acquisition of the consumer food business of US-based Del Monte Corp. earlier this year. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 DMPL obtained a $350 million bridge loan from BDO Unibank, Inc. and another $15.6 million Metropolitan Bank and Trust Co. to acquire Del Monte Foods Inc. (DMFI). DMPL completed the acquisition of DMFI in February this year for nearly $1.7 billion, jumpstarting the transformation of the former into a global branded food and beverage firm. The acquisition was funded by a $970 million debt and $705 million equity, of which Del Monte financed Read More …

MANILA, Philippines – The Government Service Insurance System (GSIS) will release P2.42 billion worth of Christmas cash gifts to pensioner members starting Thursday (Dec. 10). GSIS president and the general manager Robert G. Vergara said the amount is 15 percent more than the P2.1 billion disbursed last year. Old-age (retirement) and disability pensioners who have been receiving regularly their monthly pension and whose 2013 cash gift is above P10,000 will each receive an amount equivalent to their one-month pension not exceeding P12,600. Those whose 2013 cash gift is P10,000 and below are entitled to receive one-month pension but not to exceed P10,000. Retirees who availed of five-year lump-sum retirement benefit and had resumed their regular monthly pension after Dec. 31, 2013 will receive their cash gift for the first time this year in an amount equivalent to a month’s pension up to a maximum of P10,000. Pensioners living abroad and those in the Autonomous Region of Muslim Mindanao who are on suspended status as of Dec. 31 are also eligible to receive the cash gift provided they activate their status not later than April 30 next year. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Survivorship and dependent pensioners, however, are not entitled to receive the benefit. Retirees who will be receiving their regular monthly pension after Dec. 31, 2014 are also not eligible to receive the benefit. Similarly, new retirees from 2010 to 2014 will only be entitled to the cash gift five years after their retirement date. Read More …

MANILA, Philippines – Tantoco-led specialty retailer SSI Group Inc., a company which went public last month, improved its profits by almost half in the first nine months of the year on the back of continued expansion of its store network and brand portfolio. In a disclosure to the local bourse yesterday, SSI said its net income in the January to September period ballooned 49 percent year-on-year to P674 million. Revenues likewise jumped 16 percent to P10 billion, the country’s leading specialty store retailer said.  “The group’s performance was driven by the continued expansion of its store network and brand portfolio, and sustained gross profit margin levels,” SSI said. Over the 12-month period ending September, SSI said it has added a total of 87 new stores or an additional of 23,000 square meters to its store network, representing a 24 percent increase in its retail footprint year-on-year. Gross profit margins likewise remained healthy, rising to 56 percent from 50 percent a year ago as the group continued to benefit from strong sell-through rates. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “SSI is entering the fourth quarter on strong footing as we continue to reap the benefits of our store expansion program and of initiatives implemented to enhance profitability,” SSI president Anton Huang said. SSI said it is currently in the process of expanding its store network as it seeks to capitalize on favorable market conditions, evolving consumption patterns and consumer tastes and the availability of prime retail space in Read More …