Business News:
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Century Properties embarks on P60-B spending program
By Richmond S. Mercurio (The Philippine Star)
Updated May 13, 2015 - 12:00am
MANILA, Philippines - Upscale real estate firm Century Properties Group Inc. plans to pour in P60 billion worth of investments over the next six years to bolster its array of property offerings.
“Our capex plan is to have P10 billion spending per year or roughly P60 billion from now until 2020. That is as opposed to our historical average capex of P8.3 billion from 2012 to 2014,” Century Properties chief finance officer Jose Carlo R. Antonio said.
He said about P12 billion would be used to develop 20,000 homes under its horizontal housing segment, P10 billion for property investment and land banking, and P5 billion for vertical development and tourism.
The property company owned by the family of former ambassador Jose E.B. Antonio has embarked on a “Century 2020 plan” which aims to bring the company’s leasable space to 192,000 square meters and put up 20,000 economic housing units in five years’ time.
Part of the plan is also to develop the company’s tourism portfolio, Antonio said.
“For tourism, it will have both a leasing component as well as a for-sale component. We will launch new projects based on market demands that we project will give return on capital and internal rate of return targets. With regard to landbank on vertical developments, we will be selective but it has to be in the right location, price, and terms,” Antonio said.
Antonio added that Century Properties has sufficient landbank in Batangas and Palawan for developing its leisure and tourism portfolio.
The company is beefing up its resort portfolio as it works towards positioning itself to benefit from the growth potential in the country’s tourism and lifestyle sector.
“There is a significant opportunity in the Philippines but also a significant expansion of supply. We need to differentiate our product in light of increasing competition,” he said.
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Century Properties embarks on P60-B spending program | Business, News, The Philippine Star | philstar.com
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MPIC books 14% higher profit in Q1
By Zinnia B Dela Peña (The Philippine Star)
May 13, 2015 - 12:00am
MANILA, Philippines - Metro Pacific Investments Corp. (MPIC) reported a 14-percent increase in its first quarter core net income on the strength of its four main businesses.
In a briefing yesterday, MPIC said core net profit reached P2.6 billion during the first three months of the year, mainly driven by higher earnings at its tollways , water, power and hospital units. Reported net income, on the other hand, went up four percent to P2.4 billion.
Maynilad Water and Manila Electric Co. accounted for 37 percent of MPIC’s aggregate operating income followed by Metro Pacific Tollways Corp. (MPTC), which contributed 22 percent and the hospital group, which pitched in four percent of the total.
MPIC president and CEO Jose Ma. K. Lim said the company expects to sustain its upward trajectory albeit at a slower pace given regulatory setbacks besetting its water and tollroads businesses.
Maynilad took the government to another arbitration panel in Singapore, seeking P3.44 billion in financial claims which reflect the losses the water firm incurred from January 2013 to February 28, 2015.
MPTC, which operates the North Luzon Expressway, continues to await approval of toll rate adjustments on Cavitex and for NLEX.
These tariff adjustments of 25 percent for Cavitex R1 and 16 percent for R1 Extension and 15 percent for NLEX have accumulated since 2011, hobbling MPTC’s ability to fund road construction necessary for economic growth.
“It is anticipated that earnings growth will be lower than it should be given the capital continuing to be invested in our tollways, and despite the strong operational performance,” Lim said.
MPTC’s tollroad projects -- the NLEX Harbour Link, Citilink and the expansion of Cavitex - will entail a capital expenditure of about P31 billion over the next few years.
Overseas, MPTC is looking at several road projects in Vietnam, worth around $600 million.
MPTC reported a 15 percent growth in core profit to P628 million mainly due to strong traffic growth and increased shareholding in the NLEX.
For its hospitals division, core net income was reported at P293 million, up 16 percent year-on-year on growing patient revenues, gains from completed capital expenditure programs and effective cost-efficiency measures.
MPIC Hospital Group president Augusto Palisoc Jr. said they remain on the lookout for acquisitions to further bolster the 2,245-bed count of all its nine hospitals across the country.
Palisoc said the group is also looking to build more clinics in malls to add to its first one in Megamall called MegaClinic.
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MPIC books 14% higher profit in Q1 | Business, News, The Philippine Star | philstar.com
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Upbeat corporate earnings results buoy market
By Richmond S. Mercurio (The Philippine Star)
Updated May 13, 2015 - 12:00am
MANILA, Philippines - Upbeat corporate earnings results buoyed the stock market yesterday, pushing the main composite index higher for two straight trading days.
The benchmark stock index climbed 0.21 percent or 16.65 points to close at 7,794.55 while the broader All Shares index grew 0.15 percent or 6.62 points at 4,494.10.
“The main gauge of Philippine stocks opened where it closed the previous session and headed lower right off the bat. Heading into the final hour before the noon recess however, optimism had crept back, pushing the measure into positive territory as negative breadth narrowed,” said Justino Calaycay Jr., analyst at Accord Capital Equities Corp.
Calaycay said several earnings reports released yesterday helped cheer the local market’s mood amid Greece and China concerns dragging stock markets overseas lower Monday night.
Companies such as Metro Pacific Investments Corp., Puregold Price Club Inc., Bank of the Philippine Islands, and Philippine Seven Corp. all reported higher profits during the first quarter of the year.
Counters were evenly mixed with industrial companies leading those in the green with a 0.63 percent gain while financial firms took the deepest plunge of 0.65 percent.
Market breadth was negative as decliners beat advancers on a close bout, 93 to 92, while 57 stocks were unchanged. Value turnover rose to P7.23 billion.
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Upbeat corporate earnings results buoy market | Business, News, The Philippine Star | philstar.com
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BPI’s profit jumps 36% to P4.9B in Q1
by James Loyola
May 12, 2015
Bank of the Philippine Islands (BPI) said it registered a 36 percent jump in net income to P4.9 billion in the first quarter of 2015, citing sustained growth in lending and fee businesses.
This translates to an annualized return on equity and return on assets of 13.8 percent and 1.5 percent, respectively.
In a disclosure to the Philippine Stock Exchange, BPI said both its net interest income and non-interest income showed marked improvements against same period last year.
Net interest income for the period was P9.43 billion, up 15 percent year-on-year, on account of a 15 percent expansion in average asset base and a slight improvement in spreads.
Non-interest income was P5.13 billion, up 23 percent year-on-year, mainly due to notable increases in income attributable to the bank’s insurance business, fees and commissions, and securities trading.
“We are pleased with our first quarter results. We begin the year with strong momentum, and are focused on growing our core lending and fee businesses, while maintaining cost efficiency,” said BPI president Cezar P. Consing.
Increase in operating expenses was maintained at 8.8 percent, driven by manpower related and regulatory costs, among others. The Bank’s cost-to-income ratio improved to 50.3 percent from last year’s 54.4 percent
BPI’s core lending and deposit businesses sustained strong growth. Its total deposits reached P1.16 trillion, a 17 percent increase year-on-year.
Net Loans stood at P730 billion, up 14 percent year-on-year as lending to corporates increased by 13 percent and retail loans grew by 16 percent.
Despite the growth in average loan balances year-on-year, the Bank was able to maintain its asset quality. Gross 90-day NPL ratio was 1.7 percent, down from 1.89 percent in same period last year. Reserve cover further improved to 111.7 percent.
BPI ended the first quarter with P145.6 billion in capital, after settlement of dividends of P3.5 billion on March 17, 2015. Consolidated CET 1 Capital Adequacy Ratio (CAR) was 14.81 percent while total CAR was 15.67 percent.
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BPI’s profit jumps 36% to P4.9B in Q1 | Manila Bulletin | Latest Breaking News | News Philippines
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SCS/West PH Sea News:
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PHL slams China for questioning its actions in the West Philippine Sea
By MICHAELA DEL CALLAR
May 13, 2015 2:31pm
(Updated 3:04 p.m.) The Philippines on Wednesday shot back at China for questioning its action to bring journalists to Manila-claimed Pag-asa Island off the South China Sea, insisting it has “full sovereignty” over the feature.
“We have all the right to do such actions and no one can question it because we own it,” Foreign Affairs spokesman Charles Jose said in the latest trade of diplomatic barbs with China.
Led by Armed Forces of the Philippines Chief Gen. Gregorio Pio Catapang, local journalists
visited Pag-asa Island on Monday, sparking criticisms from Beijing, which claims nearly 90 percent of the resource-rich waters, including areas that fall within the country’s sovereignty.
Beijing called the Philippines a “rule-violator” and “troublemaker” for arranging the trip to the island also known by its international name, Thitu.
China's Foreign Ministry said the Philippines was endangering international law, a Reuters report said.
"China has made clear on many occasions that it opposes the Philippines' futile and illegal occupation," said ministry spokeswoman Hua Chunying. "The reality of the situation has again proven the Philippines to be a rule-violator and a troublemaker."
Jose maintained that no violation was committed by the Philippines.
“It is not a violation because Pag-asa is within our sovereign territory,” he said.
Manila and Beijing have been locked in years-long conflict over South China Sea territories, where undersea gas and oil deposits have been discovered in several areas.
It also pointed out that it was China who violated international law for undertaking massive and rapid reclamation of seven features in the waters, including those that are within Philippine waters.
China’s reclamation in the South China Sea, Manila said, is not only illegal, but is intended to advance its so-called nine-dash line claim which covers almost the entire waters.
Other governments, such as Brunei, Malaysia, Vietnam and Taiwan, also have overlapping claims with China in the South China Sea which analysts feared as Asia's next potential flashpoint for a major armed conflict.
—KG, GMA News
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PHL slams China for questioning its actions in the West Philippine Sea | News | GMA News Online
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Military and Defense News:
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Senate approves bill amending AFP Modernization Act
Monday, May 11, 2015
By Ruth Abbey Gita
THE Senate passed on third and final reading Monday a bill seeking to a relax a provision of the Armed Forces of the Philippines (AFP) Modernization Act on the purchase of major equipment or weapon system.
"The highly, tedious, circuitous and complicated procurement process of the AFP thwarts the full implementation of the law," Trillanes, author and sponsor of Senate Bill 2269, said.
The bill provides that the acquisition of air force, navy and army equipment and material of such types and quantities shall be made in accordance with the need to develop AFP capabilities, pursuant to its modernization objectives.
He said Section 4(B) requires that no major equipment or weapon system shall be purchased if the same is not being used by the armed forces in the country of origin or if the same is not used by the armed forces of at least two countries.
Trillanes said the SB 2269 would amend the provision by allowing the purchase of major equipment or weapons system provided that the same is being used by the armed forces in the country of origin or used by the armed forces of at least one country.
"It is hoped that by relaxing the requirement, the acquisition process of the AFP can be unclogged, if not expedited, thereby hastening the implementation of the law," Trillanes said.
Senate President Franklin Drilon said the bill was part of the Senate's efforts "to improve the capabilities of the nation's armed forces by ensuring the speedy and efficient provision of military equipment and supplies so urgently needed by our fighting men and women."
Signed in 2012, Republic Act 10349 extends the comprehensive efforts to modernize the armed forces for another 15 years and to introduce needed reforms.
Since then, Trillanes said a total of 36 modernization projects worth P41.2 billion have been completed.
(Sunnex)
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Senate approves bill amending AFP Modernization Act | Sun.Star
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.. yes its vowels and syllables. the biggest noticeable difference is japanese uses = (chi, shi, tsu, ) tagalog = (ngu, nga)
