[vgal0579]

S&P maintains 'stable' outlook on life insurers

INTERNATIONAL credit rater Standard & Poor’s Ratings Services (S&P) has maintained its stable outlook on the country’s life insurers, citing their growth potential amid rising public awareness for the need for insurance.

“...[S&P] maintained [its] stable outlook on the life [insurance] sector in Australia, Hong Kong, India, Malaysia, New Zealand, Singapore, Philippines and Thailand on the basis of ongoing growth prospects and supportive capitalization in those markets,” said S&P in a report titled “Asia Pacific’s Life Insurance Market Faces a Challenging Outlook for 2012” released yesterday.

In contrast, noting slowing economic growth and volatility in investment markets, S&P revised its outlook on Chinese and Taiwanese life insurance sectors to negative from stable, and maintained its negative outlook on the Japanese life insurance sector.

The credit rater also revised its positive outlook on South Korea to stable.

The Philippines’ life insurance industry is “backed by strong premium growth from a low penetration rate at 0.7% and a growing insurance awareness through growing disposable income,” S&P said.

The life insurance sector’s growth is expected to be supported by the country’s robust economic expansion, it added.

“Growth rates for 2012 are expected to remain strong, backed by good GDP (gross domestic product) growth rates, following growth of more than 20% in 2011,” S&P said.

The Philippine economy grew by 6.4% in the first quarter, well-above market expectations and the government’s 5%-6% forecast.

S&P, however, pointed out that despite regulators’ “active” implementation of higher capital requirements, the sector’s capitalization is still considered “relatively low by regional standards.”

Regulators have taken note of this.

Last weekend, the Department of Finance (DoF) issued Department Order 15-2012 that orders all life and non-life insurers to increase their minimum paid-up capital to P1 billion in 2020.

They should have had P175 million in paid-up capital last year, and P250 million this year.

The DoF, which oversees the Insurance Commission, cited the need for strong insurance firms in order to protect the public. It also noted the implementation of the ASEAN Free Trade Area (AFTA) by 2015 that will allow the entry of well-capitalized foreign financial service firms, including insurers, into the country.

Standard & Poor’s also noted that “agency distribution still dominates distribution, but bancassurance has been showing strong growth in recent years.”

Asia-Pacific outlook

Standard & Poor’s warned that although investment-linked products and bancassurance products have propelled Asia-Pacific life insurers’ growth, “these products are expected to be lower in the coming years.”

“Investment market volatility has adversely affected insurers’ performance in 2011, and 2012 could continue to be challenging should negative global economic conditions hit harder in Asia Pacific,” S&P said.

“Lower interest rate conditions have negatively affected the region, by reducing the attractiveness of savings-type products and also reducing the ability of insurers to reduce negative-spread and asset-liability durational mismatch issues,” the rating agency added.

“The region is susceptible to the flow-on effect of an ongoing deterioration in European markets, and more particularly the level of slow down in China’s economy. While not expected, the China hard-landing scenario would hit profitability and capitalization hard in the region, with markets nursing negative spread and asset-liability management issues being most exposed,” S&P said.

Sought for comment, Pru Life UK President and CEO Antonio G. de Rosas, in an e-mail, said there is room for the local life insurance industry to grow given the life penetration rate is less than 1%.

“With the expansion of our distribution network by recruiting more agents and growing our bank channels and conducting long-term financial literacy programs, [the industry can improve its market penetration,” he said.

He pointed out regulators have done their job in shielding the country from the effects of adverse developments in Europe and the US.

“They have been prudent in fiscal management and our external accounts continue to grow as OFW (overseas Filipino workers) remittance inflows continue to flow in,” he said.

“The BSP (Bangko Sentral ng Pilipinas) has also been conservative in monetary policy by making sure inflation remain relatively stable and low while allowing for conducive economic growth. So far, with the growth of premiums over the past few years, the insurance industry has been least affected by the negative developments in the West,” he added.

Mr. de Rosas also said that to address poor investment returns due to a low-interest rate environment, insurers have “focused on selling unit-linked insurance policies as opposed to traditional policies.” -- ARRG

[Philstocks.ph]

Alphaland allots Php2.2B for Makati Project

BUILDER Alphaland Corp. is investing P2.2 billion for the “Makati Place” development that will  feature three high-end components: a hotel, two-tower condominium, and The City Club exclusive lifestyle facility.

Joanna Duarte, vice president for sales and marketing, said the condominium component alone is expected to rake in P5 billion in revenues.

The two-tower condominium will have a total of 540 fully fitted units, with prices ranging from P8 million to P20 million. About 30 percent of the units are already sold since the company started pre-selling late last year.

Source:
http://businessmirror.com.ph/home/companies/29531-alphaland-allots-p22-billion-for-makati-project

[vgal0579]

New trading symbol readied


LISTED CEMENT MAKER Lafarge Republic, Inc., formerly known as Republic Cement Corp., will be trading under new corporate name and symbol starting on Friday, a disclosure to the Philippine Stock Exchange (PSE) showed late last week.

   After July 13, Lafarge Republic’s stock will officially be traded under the stock symbol “LRI” from the former “RCM,” with a new alias of “Lafarge_Rep,” the disclosure read.

Last Tuesday, the Securities and Exchange Commission approved the company’s change in its corporate designation to its present one from Republic Cement, reflecting the name of company’s second-largest stockholder, Lafarge Holdings Philippines, Inc.

As of end-March, Lafarge Holdings held a 23.49% stake in the company, or equivalent to 1.37 billion shares, according to an earlier regulatory filing.

The PSE noted that Lafarge Republic had already accomplished procedures for updating the company’s stock certificates, a prerequisite before its name change is finalized.

Stockholders may claim their new stock certificates from the company’s stock transfer agent beginning Aug. 23, the disclosure added.

“The corporation will thus reflect such new name in its subsequent issuances of new stock certificates, and will replace stock certificates evidencing outstanding shares with new stock certificates reflecting the new name,” Lafarge Republic said.

Shares of Lafarge Republic rose by 0.12% to P8.65 last Friday from P8.64 at its previous close. -- Franz Jonathan G. de la Fuente
Post Merge: Jul 09, 2012, 09:49 AMTo curb speculative inflows: BSP bans foreign funds in SDAs



SUBIC BAY FREEPORT, Philippines – Foreign funds will be officially banned in the special deposit accounts (SDAs) of the Bangko Sentral ng Pilipinas (BSP) under “refinements” made by monetary authorities to combat speculative inflows, the central bank chief said yesterday.

“Existing regulations on SDA do not provide restrictions on non-resident investors,” BSP Governor Amando Tetangco Jr. told reporters during the BSP’s annual media seminar held here.

“The (Monetary) Board then approved at its last meeting a refinement to the manner in which SDA is traded. This will be effective immediately upon publication,” he explained.

“We will now require counter parties of the BSP to accomplish an undertaking, duly notarized, that none of the funds invested in the SDA – both by the bank and the trust arm of banks – have been sourced directly or indirectly from non-residents,” he added.

SDAs are part of the BSP’s policy toolkit to siphon off excess domestic liquidity from the financial system, which may stoke inflation. However, Tetangco said these have become “entry points” for foreign funds seeking higher yields in emerging markets.

BSP Deputy Governor Diwa Guinigundo said in the same seminar: “The SDA is a monetary instrument meant for funds already here in the Philippines. If you allow the SDA to be accessible to foreign money, that is defeating the purpose.”

Interest paid to SDAs are peg to BSP’s overnight borrowing rate of four percent, much higher than the near zero rates in Europe, which has experienced rate cuts by monetary authorities in order to support growth amid the debt crisis.

SDA deposits ballooned to P1.645 trillion as of the first quarter of this year, BSP data showed, contributing to the peso’s appreciation.

Tetangco said given recent developments in Europe, “we want to forestall any increase in the use of facility.”

The SDA reform followed last January’s raising of charges – to 15 percent from 10 percent – on non-deliverable forwards (NDF) – investments that allow investors to book profits by calculating the difference between the agreed exchange rate and the prevailing market rate.

“We are monitoring capital flows. There could be an increase in these flows again. There have been new developments so we need to watch it some more,” he explained.

The European Central Bank last week cut its key rate to new record-low of 0.75 percent as the Bank of England also announced an extension of its quantitative easing (QE) or bond-buying program aimed at providing funds to the financial system.

Guinigundo said such measures may be both beneficial and detrimental to the local economy.

“If QE lowers long term bond yields in the advanced economies, investors could turn to emerging markets of similar maturities but of higher rates. This would boost capital flows, which would abet asset price inflation,” he explained.

“Positive interest rate differentials between the developed and emerging markets can be expected to persist because the problems in the US and Europe, it may take years for these to be solved,” Guinigundo said.

This may prove to be a challenge to the economy, he explained, especially if it does not have the “absorption capacity” required to utilize these flows.

“We would expect the fiscal sector would continue to do more, to spend more, so that there will be more demand for liquidity, those parked at the SDAs will be reduced,” Guinigundo said. - P Magtulis

[vgal0579]

Government's outstanding debt hits P5.147 trillion

MANILA, Philippines - The national government's outstanding debt jumped 7.76% to P5.147 trillion in May, due to higher borrowings from the domestic market.

Data from the Bureau of Treasury showed the government's debt grew by 7.76% compared to P4.776 trillion in the same month last year.

Of the total outstanding debt, 59.02% is to domestic lenders, while 40.98% is to foreign creditors.

Domestic debt grew by 11% to P3.037 trillion because of the net issuance of government securities and net appreciation of the US dollar and euro against the peso on multi-currency retail bonds.

Foreign debt went up by 3.4% to P2.109 trillion, compared to P2.04 trillion from a year ago. This was attributed to the late receipt of notices of availment. However, this was partially offset by the P3 billion net repayment and P0.04 billion net depreciation of third currencies against the US dollar.

The national government's total guaranteed debt stood at P558.83 billion as of end-May, up P9.86 billion from P548.97 billion as of end-April.

The P12.88 billion increase in foreign guaranteed obligations was attributed to the combined effects of the P10.60 billion depreciation of the local currency against the US dollar, P2.45 billion net appreciation of third currencies against the US dollar and P0.17 billion net repayment.

At the same time, there was a P3.02 billion drop in domestic guaranteed obligations because of the P3 billion redemption of National Power Corporation 7-year fixed rate coupon bond and P0.02 billion net repayment of PHILEXIM’s domestic borrowings during the same period last year.- ABS CBN
Post Merge: Jul 16, 2012, 10:10 AMConsumer loans surge as banks extend more housing, auto loans

CONSUMER LOANS extended by universal, commercial and thrift banks rose by almost a fifth in the first quarter from year-ago levels as people sought financing for homes and cars and made more use of their credit cards, the Bangko Sentral ng Pilipinas (BSP) reported over the weekend.
  In a statement, the central bank said consumer loans summed up to P563.839 billion as of March, 17% higher compared to the same period last year.

Around 41% of these borrowings were in the form of residential real estate loans; 26%, automobile loans; 23%, credit card receivables; 10%, other consumer loans.

Real estate loans climbed by 21% to P232.570 billion in the first quarter from P192.065 billion last year, fueled by a real estate boom.

Universal and commercial banks held 57% or P132.010 billion of said loans, while the rest was held by thrift banks.

Automobile loans, including those made by banks’ non-bank subsidiaries, went up by 17% to P144.838 billion as of end-March from P124.222 billion last year.

Universal and commercial banks accounted for 52% or P74.981 billion of total automobile loans. Thrift banks held the remaining P69.857 billion.

Credit card receivables increased by 11% to P131.870 billion from P118.772 billion last year.

Universal and commercial banks held almost all or P131.373 billion of total credit card receivables, while thrift banks accounted for only P498 million.

Other consumer loans amounted to P54.560 billion, reflecting an 18% increase from last year’s P46.092 billion.

These loans are used to finance personal and household needs such as appliances, furniture and fixtures, or to pay taxes, hospital and educational bills.

Thrift banks held more than 55% or P30.071 billion of other consumer loans, while the rest (P24.489 billion) were extended by universal and commercial banks.

Loan quality has improved as the ratio of non-performing loans to total consumer loans fell to 6.81% as of end-March from 8.09% in the same period last year. -- Kathleen A. Martin   

[Philstocks.ph]

Asean Shares Best With Top Risk-Adjusted Returns: Southeast Asia

Benchmark indexes in the Philippines, Malaysia, Thailand, Indonesia and Singapore returned the most among Asia-Pacific markets worth more than $100 billion in the three years ended July 17, according to the BLOOMBERG RISKLESS RETURN RANKING. All five beat an index of developed markets by risk-adjusted returns, and four came out on top over five years.

“Investors have been focused on and rewarded in the smaller Asean markets because they have been more defensive and domestic-oriented,” said Timothy Moe, a Hong Kong-based strategist at Goldman Sachs Group Inc., referring to the Association of Southeast Asian Nations. “That’s been a better source of growth than what we see in the other more cyclical markets in North Asia. It probably will continue,” he said in a Bloomberg television interview in Hong Kong on June 26.

Source:
http://www.bloomberg.com/news/2012-07-17/asean-shares-best-with-top-risk-adjusted-returns-southeast-asia.html

[vgal0579]

Stock exchange aims to finish reviewing listing rules by Aug.

THE PHILIPPINE Stock Exchange (PSE) is looking to complete next month its review of listing rules for second and small and medium enterprises (SMEs), which will be supported by input from concerned groups, a top official said.

“We have given our management team a month to review and consult sectors concerned,” Jose T. Pardo, PSE chairman, told BusinessWorld in a text message last Friday.

He declined to cite further details on the ongoing review.

Last July 12, the PSE announced it will be directing a review of the initial public offering (IPO) listing rules of the second and SME boards.

The PSE had earlier said that it has become wary of secondary offerings listed on the second and SME boards, as issuers are suspected to be using the route to exit earlier listed companies.

One of the proposals eyed by the PSE included merging the two boards in order to enhance their respective investment protection features, earlier reports showed.

“The policy review intends to strike a balance between the need of [smaller firms] to quickly access the capital markets, while making sure that the investing public is adequately protected,” Mr. Pardo explained.

The PSE is currently composed of three listing segments: the first, second, and SME boards. The first board caters to companies with large capital and operating histories, among other added requirements.

The second board is reserved for companies with a minimum market capitalization of P250 million, a minimum authorized capital stock of P100 million, and an operating history of at least a year prior to listing.

The SME board, on the other hand, serves firms with an authorized capital of only at least P20 million and a maximum of P100 million, net tangible assets of at least P5 million, a positive net operating income, and an operating history of at least a year prior to filing of a listing bid.

SMEs must also be subjected to an evaluation of management integrity and capability, growth and profitability prospects, and business viability, among others, which is not required of firms listing on the first and second boards.

An analyst welcomed the inclusion of affected groups in the PSE’s ongoing rules evaluation.

“The PSE’s plan to consult concerned sectors for the review of the [second and SME board] listing rules is a favorable move,” Elizabeth S. Abadillo, analyst at brokerage Angping & Associates Securities, Inc., told BusinessWorld in a text message yesterday.

“[The PSE] needs to do its job well to enact improvements and make the listing rules more defined, and they have to talk with other groups for this,” she said. -- Franz Jonathan G. de la Fuente   

[vgal0579]

BSP seen to cut policy rates on Thursday



MANILA, Philippines - A JPMorgan report showed it expects the Bangko Sentral ng Pilipinas (BSP) to cut interest rates by 25 basis points during the Monetary Board meeting on Thursday.

JPMorgan said it now sees the BSP cutting interest rates, revising its earlier projection of a rate reduction by September.

"BSP was widely expected to stay on hold this week… However, Governor Tetangco sent a dovish text message (to the media) that, given the timing, we can only interpret as a signal that he intends to ease monetary policy this week,” JP Morgan said in the report "Philippines: Shifting Forward Rate Cut Expectation to this Week."

A 25 basis point cut in interest rates will bring the overnight borrowing and lending rates to fresh lows of 3.75% and 5.75%, respectively.

On Tuesday, Tetangco said the BSP has room to tweak policy as he forecast annual inflation in July would be between 2.6% to 3.5%.

"The inflation average over the policy horizon is still expected to fall closer to the lower end of our target range... Our current view is that there is some scope to adjust monetary policy settings to protect the inflation target on the downside," he said.

A Reuters poll earlier showed most analysts still expect the BSP to leave rates unchanged at its policy meeting on Thursday.- ABSCBN
 

[bajoyjoy]

Just in: this might impact the stocks in the renewable energy, or the energy/power sector in general...


Energy regulator sets renewable energy tariff rates
MANILA, Philippines – The Energy Regulatory Commission issued on Friday the much awaited feed in tariff (FIT) rates for the use of renewable energy sources.

In a statement, the ERC said it has set a FIT rate of P9.68 per kilowatt-hour for solar; P8.53 per kWh for wind; P6.63 per kWh for biomass; and P5.90 per kWh for hydro resources.

“The lowered FITs will definitely cushion the impact of implementing the FIT incentive mechanism under the RE Act on the electricity rates, while still being sufficient enough to attract new investments in renewable energy. This is win-win for all,” ERC Executive Director Francis Saturnino Juan said.

The approved FIT rates were much lower than what developers had sought.

[vgal0579]

Gov’t prepares for debt swap, retail bond sale

THE GOVERNMENT will hold a peso-denominated debt swap and a retail Treasury bond (RTB) sale this semester, and has begun soliciting bank proposals for the two transactions, a Treasury official said.

“I have received the go signal from the National Treasurer to tap banks for proposals on our planned local debt swap and RTB sale this semester,” Deputy Treasurer Eduardo S. Mendiola told BusinessWorld in an interview last Friday.

“We asked the banks to get a feel of the market so we will know what tenors to issue for the two transactions,” he added, but declined to say how many banks have been approached to submit proposals.

“We want to take advantage of the high liquidity in the domestic market and the low interest rate environment,” he further said.

For the local bond exchange, Mr. Mendiola said the Bureau of the Treasury is looking at issuing 25-year papers for five-, seven-, 10-, 15- and 20-year papers.

“Domestically, we always want to exchange our short-tenored bonds with longer-tenored securities because our goal is to always lengthen the government’s maturities,” Mr. Mendiola said.

The last time the government held a local bond swap was in July last year when it issued a total of P323.4 billion worth of fresh 10- and 20-year bonds in exchange for P292.5 billion worth of eligible securities offered by investors.

For the RTB sale, Mr. Mendiola said the government is eyeing to issue 10-, 15-, 20- or 25-year Treasury bonds.

“The tenor would depend on what the market wants,” he said.

National Treasurer Roberto B. Tan had said the government wants to have the RTB sale as part of its regular borrowing program and wants to conduct it twice a year.

In February this year, the Treasury raised P179.796 billion from the sale of 15- and 20- year RTBs, yielding 5.375% and 5.875%, respectively.

Asked about the Treasury’s plan to borrow from offshore markets, Mr. Mendiola reiterated the statement of Finance Secretary Cesar V. Purisima last Thursday.

“There is no need to tap the international markets now given our good fiscal performance,” Mr. Mendiola said.

The government programmed $2.25 billion in commercial borrowings this year, of which $1.5 billion was borrowed by issuing 25-year dollar denominated bonds in January. The Treasury may still tap offshore markets to borrow the remaining $750 million.

The government registered a deficit of P11.696 billion last month, bringing the first half tpotal to P34.482 billion, well below the P109.341-billion cap for the period. - A Gregorio

[vgal0579]

YIELD TRACKER: Government papers post more gains amid positive sentiment

GOVERNMENT DEBT papers continued to gain due to the Bangko Sentral ng Pilipinas’ (BSP) recent rate cut and positive market sentiment.

   Yields dropped by 22.69 basis points (bps) on the average month on month, data from the Philippine Dealing & Exchange Corp. (PDEx) showed.

“Month over month, there was a decline due to the decision of the BSP to cut overnight rates as well as the positive market sentiment given the Philippines’ strong fundamentals,” a bond trader said. The benchmark 91-day Treasury bill (T-bill) rallied by a hefty 40.25 bps to 1.7975% from 2.2000%.

Yields on other short-tenored papers also dropped, with the 182-day and one-year T-bills fetching 2.0900% and 2.3500%, down respectively by 21.00 bps and 10.00 bps.

Long-tenored debts rallied, led by the 10-year Treasury bond (T-bond) whose yield plummeted by 38.81 bps to 4.8088% from 5.1969%.

Yields on the 20-year and 25-year debt papers plunged by 26.97 bps and 34.49 bps, to 5.5971% and 5.6874%, respectively.

The central bank cut the overnight borrowing rate by 25 bps last July 26, bringing it to a record-low of 3.75%.

Week-on-week, yields declined by 1.41 bps, which analysts attributed to July inflation expectations and an increase in demand.

“Interest rates generally moved sideways to down [last] week, with short-term rates falling to as low as 1.9592% but bouncing off its lows towards end of the week ahead of the release of July inflation. The expectation for July inflation is 3.2%, slightly higher than 2.80% in June,” said Jonathan L. Ravelas, chief market strategist at Banco de Oro Unibank, Inc., in an e-mail to BusinessWorld.

The National Statistics Office is scheduled to release the inflation data for July tomorrow.

Commenting on the week-on-week movement, the bond trader said:

“The demand for bonds, driven by maturing retail Treasury bonds (RTBs), pushed yields down.”

“RTBs amounting to P25 billion matured last August 1,” another bond trader said. -- Trishia P. Octaviano

[bajoyjoy]

I don't know which appropriate thread to post this in, kaya dito na lang..

some selling pressure was felt today on stocks that received deductions in their weights (MER, MBT) while URC (with increase in weight) enjoyed a temporary price upward movement...

MSCI index review on PH stocks

effective August 31, 2012
A. MSCI Philippines Index Security Weight (% change)

1. Metrobank -1.49%
2. Meralco -1.26%

Security Weight Increases
1. SM Investments +0.33%
2. URC +0.32%
3. PLDT +0.24%
4. ALI +0.22%
5. SM Prime +0.19%
6. AEV +0.19%
7. BDO +0.18%
8. AC +0.15%
9. AP +0.13%
10. ICTSI + 0.11%

B. MSCI large cap index security weight changes in %

Decreases:
Metrobank -1.74%
Meralco -1.45%

Increases:
SMIC +0.50%
PLDT +0.36%
ALI +0.32%
SMPH +0.29%
AEV +0.29%
BDO +0.27%
AC +0.22%
AP +0.20%
SMC +0.17%
BPI +0.16%

C. MSCI Mid-Cap Indices

Weight Decreases
ICTSI -0.40%
AGI -0.35%
JFC -0.31%

Weight Increase
URC +1.06%

D. MSCI IMI (investible market indices) Security Decreases
Metrobank -1.2%
Meralco -1.0%
Security Bank -0.81%

Security Weight Increases SMIC +0.30%
URC +0.27%
PLDT +0.22%
ALI +0.19%
SMPH +0.17%
AEV +0.17%
BDO +0.16%
AC +0.13%
AP +0.12%
ICTSI +0.10%

E. MSCI Global Small Cap Indices
RLC +0.43%
MEG +0.31%
FGen +0.30%
BEL +0.29%
PGOLD +0.25%
MWC +0.25%
FPH +0.26%
CEB +0.20%
PNB +0.20%
SECB -4.12%

Source: twitter.com/philbizwatcher (dorisdumlao)

[GIG]

FMIC to delist from the bourse. Tender offer at 89 pesos.

[vgal0579]

Philex coal subsidiary suspends mining

BRIXTON ENERGY and Mining Corp., a wholly owned subsidiary of Pangilinan-led Philex Petroleum Corp., has decided to suspend and review its coal mining operations due to depressed prices of the mineral, the listed parent said in a disclosure yesterday.

Philex Petroleum said that Brixton “has recently been adversely affected by the significant drop in coal prices.”

“In response to the unexpected change in market conditions, it has been decided to undertake a detailed review of the operations and prospects of the coal mining project under coal operating contract no. 130 located at Diplahan, Zamboanga Sibugay,” the disclosure read.

The company added that review could take up to six months.

While such assessment is being undertaken, Philex Petroleum said “it would be prudent to suspend underground mining operations.”

It added that activities in the area will be confined to maintenance and repair of the coal mine, and the processing and marketing of its existing coal inventory.

OVERSUPPLY
Philex Petroleum President Carlo S. Pablo said that the drop of prices in the coal market was due to the oversupply of coal.

“Reports say that there is regional oversupply resulting from a drop in demand from major coal buyers like China,” Mr. Pablo said in an e-mail yesterday.

“There are a number of coal price indexes that affected this. The drop was in the range of 20-30% over the past 12 months,” he added.

In another e-mail, Brixton General Manager Isagani H. Francisco said that the company “will review and reassess minable reserves, coal quality, geologic structures as well as mining methodology and techniques to address geological issues which adversely affected previous production.”

He added that Brixton has already advised the Department of Energy on its plans and that the company has started its review this month.

“This review will determine the viability of continuously operating Brixton,” Mr. Francisco said.

“During this period, there will be no income from production. However, since activities underground will be maintenance and repair, operating expenses will be drastically reduced,” he clarified.

He added that Brixton “will endeavor to sell its existing inventory to cover its operating expenses.”

REQUIREMENTS
Energy Undersecretary Ramon Allan V. Oca confirmed that “the international prices of coal are going down because of oversupply of coal that leads to a lower demand.”

He added that Brixton will have to submit “an updated work plan and target date on when they [sic] will resume operations of the coal mine,” but noted that the company “is definitely allowed to review and suspend their operations.”

Brixton, which was incorporated in 2005, is Philex Petroleum’s coal mining arm.

Philex Petroleum saw its bottom line swing to a P131.858-million net loss as of September last year from a P472.112-million net income in the same nine months in 2011.

In the same comparative periods, revenues fell 60% to P154.373 million from P387.061, as its earnings from petroleum sank to P120.304 million, just a third of P385.773 million the previous year.

Earnings from coal operations -- undertaken in its only coal mine in Zamboanga Sibugay -- grew 26 times to P34.069 million from a mere P1.288 million.

Costs in the comparative nine-month periods fell 14.4% to P255.859 million from P298.978 million.

The company’s shares gained 40 centavos or 1.19% to P33.95 apiece yesterday from P33.55 last Tuesday.

First Pacific Co. Ltd., a majority owner of Philippine Long Distance Telephone Co. (PLDT), is the single largest shareholder in Philex Mining Corp., Philex Petroleum’s parent. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a minority stake in BusinessWorld. -  Claire-Ann M. C. Feliciano

[iamgawwy]

Megaworld expands P25-B Iloilo business park

http://www.philippinestockmarketnews.com/2013/05/megaworld-expands-p25-b-iloilo-business.html

MANILA, Philippines - Megaworld Corp., the property company owned by billionaire Andrew Tan, is adding another 18 hectares to its P25-billion township development, the Iloilo Business Park, due to strong demand.

"We are expanding to cater to the increasing demand for residential and commercial properties in Iloilo Business Park. During the past months, we have experienced the overwhelming reception of Ilonggos to our first development in the region,” says Jericho Go, first vice president, Megaworld.

The Iloilo Business Park will now have a total land area of 72 hectares, but did not reveal plans for the additional 18 hectares. It will be Megaworld’s biggest township in the Visayas,

Megaworld had previously announced the township will have residential condominiums, boutique hotel and commercial lots, office towers, two luxury hotels, the much-awaited Iloilo Convention Center, the Megaworld Central Mall and Annex, and the 1.1-kilometer Festive Walk commercial strip.

"Megaworld is one with the local government’s goal of helping Iloilo regain its stature as Queen City of the South, which we are optimistic about in the next 5 to 10 years," Go said.

Megaworld started selling the first condominium tower One Madison Place in March, and is now already 85% sold. The second tower is scheduled for pre-selling this month.

Construction of the two office towers on Megaworld Boulevard, along with the Iloilo Richmonde Hotel tower, is on-going and expected to be completed in 2014. The office towers will be home to several business process outsourcing companies, some of which will be first-time locators in Iloilo.