From here on, I’ll be posting daily morning links (mostly summaries from your Philippine business news papers). This will be released from Monday til Friday, every day before 8am.
1.) BSP has room to cut rates to boost growth, BPI says (Inquirer)
Bangko Sentral ng Pilipinas officials may want to reconsider adopting a “neutral” monetary stance in the second semester, economist Emilio Neri Jr from Bank of the Philippine Islands said. Benign inflation prints for April and May would provide even more impetus to cut policy rates as an assurance against another mediocre growth performance for the Philippines this year. The commentary was issued after last week’s report that March inflation had further decelerated to 2.6 percent—lower than the consensus of 2.8 percent, the February figure of 2.7 percent and well below the BSP’s full-year target of 3-5 percent for second month in a row.
2.) PAL, AirPhil set refleeting programs that can cost up to $1B (Inquirer)
Philippine Airlines, is seen investing as much as $1 billion for a fleet modernization program that will make the storied flag carrier more competitive.
SMC’s entry into PAL and AirPhil would involve the issuance of new shares, new money would flow into the carriers. For capital spending beyond $500 million, the source said the airlines could fund this through debt rather than equity so as not to disrupt the existing capital structure.
PAL Holdings’ consolidated total comprehensive loss for the nine months of its fiscal year ending Dec. 31, 2011, amounted to P3.6 billion, down 212 percent from a year ago as passenger and cargo revenues declined 13 percent.
The $1 Bil Solaire Manila through Sureste Properties (100% subsidiary of Bloombery), is expected to be complete its Phase 1 Construction by 4Q2012. Sureste owns the hotel component of the project, and owns 100% of Bloombery Resorts and Hotels Inc (BRHI) which owns the casino component of the project, being one of only 4 licensees granted by Pagcor to develop the gaming complexes at the Entertainment City Manila. Solaire is scheduled to open by 1Q2013. Bloombery’s total outstanding shares is 9.29 Bil shares with a par value of P1.00. Total listed shares is 8.37 Bil shares including the 8.29 Bil new shares issued in connection with the increase in Bloombery’s authorized capital.
(Read more about the profit sharing splits between Sureste, BRHI and GGAM using the link above.)
San Miguel Corp. has been granted an extension for three years until April 2015 of its license to operate Bell Telecommunications Philippines, Inc. (BellTel) , after it expired last month, so that the company could continue with the installation of its network infrastructure.
Sugar Producer Victorias Milling Co., Inc. aims to have its shares traded again on the local bourse by June after being suspended in 1997 due to alleged misinterpretations of information amid financial woes. The Negros Occidental-based sugar firm had suffered financial losses in 1995 in the run-up to the Asian financial crisis.
The company, however, sought for corporate rehabilitation in 1997. Last year, the company told the SEC it was on tract with its rehabilitation plans, reportedly paying its creditors some P4 billion of its P4.417-billion restructured loan after several asset sales and work force cuts.
Local license holder for the global 7-Eleven convenience store chain posted a net income of P356.34 Million last year, up by 28.70% from P276.88 Mil in 2010. The growth was far from the 77.72% profit rise recorded in 2010, a year marked with campaign spending in the run up to the national elections. Philippine Seven Corp. currently operates over 600 7-Eleven stores. The chain claims to corner a 50% market share as of end-2011.
**** (Not much news, guess most people still are in Lenten mode)