The peso closed lower at P56.025 to the US dollar yesterday at the Philippine Dealing System of the Bankers Association of the Philippines from P55.985 the previous day. The weighted average rate appreciated to P56.009 from P56.022. Total volume amounted to $139.9 million.
Hotels occupancy rate up
More hotel rooms in metropolitan Manila were occupied and guests stayed longer in the first five months of this year than last year, the Department of Tourism said yesterday. "According to the reports of these hotels, the combined increase of 22.85 percent in occupancy by accredited and non-accredited hotels was due to the influx of guests during the national elections as well as balikbayans (Filipino expatriates) who visited the country," the tourism agency said in a statement. The average occupancy rate of hotels operating within the Philippine capital region rose to 69.5 percent between January and May from 56.2 percent in the year-earlier period. Guests stayed for an average 2.65 nights in the five months to May, up from 2.55 nights in the same period in 2003. The January-May survey covers 64 hotels that have a combined 12,142 rooms, while that for the same period last year covered 61 hotels with 11,946 rooms. Tourist arrivals in the five months to May were up 31 percent on year to 954,473.
KOGAS eyes Malampaya project
The Department of Energy said yesterday it is in "advanced discussions" with a consortium led by Korean Gas Corp. (KOGAS) for the sale of close to half of government’s 10 percent stake in the $4.9 billion Malampaya offshore natural gas project. Energy Secretary Vincent Perez said "our negotiations are in advanced stages now with the Korean group, but there is still no agreement to date." The KOGAS-led consortium includes Seoul City Gas, LG International Corp and Daesung Industrial Co Ltd. PNOC-Exploration Corp holds the government’s stake in Malampaya. The gas fields are operated by a consortium that includes Royal Dutch/Shell group and US oil major Chevron/Texaco. The site, located in the South China Sea, off the island of Palawan, is the largest single project in the Philippines and has been supplying natural gas to power plants on the main island of Luzon. Earlier reports said a 4.9 percent stake in the project is estimated to be worth $300 million to $400 million. ING Bank is advising the government on the sale.
Globe gets P5-B loan for capex
Globe Telecom Inc. said on yesterday it had signed a P5 billion term loan. "Proceeds will be used to finance capital expenditures related to Globe’s ... network expansion," it said in a statement. Globe said the loan was arranged by Citicorp Capital Philippines Inc., with various institutions as lenders. The firm did not give further details. Globe, jointly owned by conglomerate Ayala Corp. and Singapore Telecommunications , accounts for about 40 percent of the local mobile phone business against 58 percent held by top provider Philippine Long Distance Telephone Co.
JGS okays P1.3-B shares offer
JG Summit Holdings Inc., the investment holding company of tycoon John Gokongwei, Thursday said its board approved a private placement of preferred shares that will raise R1.28 billion. In a disclosure to the stock exchange, the company said its board approved the offer and issuance of 255 million redeemable and non-voting preferred shares at an issue price of R5 each. "The said offering shall be by private placement for distribution to qualified institutional buyers," said JG Summit’s disclosure. JG Summit investor relations officer Bach Johann Sebastian told Dow Jones Newswires Thursday that proceeds from the private placement will be used for general corporate finance purposes. "It would be for qualified institutional buyers here because it’s a peso offering," he said. "We have already sent information to interested investors, and they are in the process of deciding to invest or our bankers are already processing their orders," he added. Sebastian said the company will make the proper disclosure as soon as the private placement is completed. JG Summit has interests in banking, property, telecommunications, retail, petrochemicals, food manufacturing, and textile, among others.
BPI income up 46% in Q2
Bank of the Philippine Islands reported yesterday a 46 percent jump in second-quarter net profit on higher loan growth and interest income. The bank, owned by conglomerate Ayala Corp. and Singapore’s DBS Group , posted net earnings of R1.9 billion ($34 million) in the three months to June against R1.3 billion in the same 2003 period. Analysts had expected BPI to post higher second-quarter profit growth than a year ago when profit rose by nearly 10 percent. They gave no specific forecasts. Rival Metropolitan Bank and Trust Co. , the country’s top lender, earlier this month posted a 3.6 percent decline in second-quarter profit as its loan book grew by just 1 percent on the previous March quarter. BPI said its strong quarterly profit was backed by a 30 percent increase in net interest income. BPI is expected to earn net profits of R6.4 billion this year, up from R5.7 billion in 2003, according to Reuters Estimates. For the first half, BPI’s net profit jumped to R3.5 billion from a year earlier R2.6 billion.
