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AEV to remain focused on core business — Aboitiz
Monday, 05 23, 2005
Following a focused strategy that has been working well for the company, Aboitiz Equity Ventures (AEV) president and chief executive officer Jon Ramon Aboitiz said the company will “continue to pursue its long-term objectives and faithfully implemented strategic initiatives that have proven to work very well for us.”
He said AEV continued to focus on its core businesses of power, banking, transport and food, leveraging on its competencies to expand said core businesses and enhanced customer intimacy while continuing to be low-cost producers. The company also maintained a balanced portfolio, a strong balance sheet and a healthy cash flow.
AEV's power business continued to be the main earnings driver, providing the lion's share of the company's income. All its distribution utilities registered high kilowatt-hour growth sales and efficiency ratios continued to improve with reduced system losses and improved productivity. Except for San Fernando Electric Light and Power Co., all utilities completed their unbundling of rates as required by the Energy Regulatory Commission.
In power generation, a mild El Niño late last year affected slightly the output of AEV's hydro generation plants. But profits were still in line with expectations. In March 2004, Hedcor won the bid for the Talomo four-plant complex in Davao, the first power generation facility to be privatized by the Psalm. Luzon Hydro's Bakun Supplemental Water Expansion project will be operational in May 2005 and add to the company's profitability.
AEV banking subsidiary UnionBank, whose assets grew to P102 billion in 2004, continued to lead the industry in several key performance measures, showing very strong ratios. It is no. 1 in capital adequacy ratio, asset turnover and productivity, No. 2 in return on average equity and No. 4 in net income.
Aboitiz Transport faced many challenges in 2004 with continuous increases in fuel, security and dry-docking costs affecting its profitability. But it continued to be the leader in both the passage and freight markets, successfully launching 2GO, its new freight brand to focus more on customers' diverse logistics requirements.
There's significant foreign accumulation in AEV for the past 10 days amounting to approx P30.23mn (as of may20, 2005).. gud sign?
other stock with significant foreign accumulation includes.. BDO, GLO, MERB and TEL.
Last edited by Wizz on Mon May 23, 2005 12:09 pm, edited 1 time in total.
I dunno about you guys, but a rights offering for me is a damned-if-you-do-damned-if-you-don't situation. If you don't avail of it, no problem, but your acquisition cost remains the same while the price of the stock has already dropped due to the adjustment. If you do get the rights offer, you have to shell out something just so you won't get left behind...
logically right offering will definitely dilute the price of aev's share. however, some advocate of the right offering postulate the following. AEV in the past have been buying their own shares and converting them as treasury stock because they think that the market price of their share is very cheap compared to their inherent value. as they kept on accumulating their shares, shares to the public become scarce that prevent the foreign funds from having them in their portfolio. Aev in the past have been growing steadily and funding requirements were done conservatively. they have acquired WGA; UBP growth are in leaps and bounds. with the EPIRA law and the privatization of NAPOCOR assets, they think their are more opportunities of growth in the future. from a regional player in the country to a national player. AEV want recognition. and they want foreign funds to own their shares. foreign funds have recognized aev's ability to take advantage of these opportunities. but no shares are available. in order for aev to be successful in this offering, they must have solid expansion program for them to sell the treasury stock at a higher price. I think these program are now starting: announcement on putting up power plants. announcement on intention to become a power distributor in olongapo. expect more announcements. target price P8 double your money within the year.
World class at Balamban;
Tsuneishi shows the way
By PRIAM F. NEPOMUCENO
A Japanese ship building company in business since 1994 is showing the way how to be successful and green at the same time.
No less than economic planning secretary Romulo Neri has noticed how Tsuneishi Heavy Industries (Cebu) Inc. has been spearheading shipbuilding in the Philippines.
Located at the 202 hectare West Cebu Industrial Plant (WICP) Tsuneishi is currently one of the biggest investors and employers in Balamban, Cebu.
Readers will also recognize that it was Tsuneishi which attached a lien on a ship of Negros Navigation Co. for the latter’s inability to pay its debts.
Tsuneishi, is a joint venture between the Aboitiz Group of Companies and the Tsuneishi Group.
The partnership was established last September 1994 and it has a capital of more than $60 million.
Cheek by jowl with Tsuneishi at WICP is another Aboitiz company, FBM Marine Inc, which makes "SuperCat" high-speed transport ships.
Sources at the WICP said that Korean heavy equipment and car manufacturer Daihatsu is currently studying the feasibility of setting up a plant there.
The company is planning to expand production from 7 to 20 hulls yearly.
The company has recently completed a private port capable of handling "medium and large sized freighters" in Balamban to "expedite the movement of steel plates and pre-fabricated hull parts" imported from Japan. .
WICP officials said that they are batting for the modernization of the Balamban port as "it could helped boost economic growth in the area and cut travel time for commuters proceeding to Cebu via Lucena, Batangas or Bohol by 12 to 20 hours."
Upgrading of the port would also decongest traffic from the Ports of Toledo and San Carlos and Tuburan. The government is presently looking for funds to implement the modernization.
WICP officials said that their facility is not only Balamban’s largest employer but one of the most environment- friendly in the region as well.
Officials said that they have invested heavily in anti-pollution devices to prevent harming the environment.
WICP officials also said that they are working with the Balamban Tripartite Pollution Monitoring Team (BTPMT) to insure that the ongoing industrial activities will have a minimal effect on the environment.
They also that they have established a seven hectare forest park inside the facility to help maintain the purity of the air.
The WICP also said that they have constructed a waste water plant capable of purifying 400 cubic meters of waste water per minute as to avoid polluting nearby natural water systems.
Boustead Singapore unit to build 200mw power plant in RP
Posted: 6:36 PM | Jun. 08, 2005
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SINGAPORE -- Boustead Singapore Ltd said its 40 percent-owned unit, Salcon Power Corp, is planning to build a 200-megawatt coal-fired power plant on the central Philippine island of Cebu.
Salcon will select a joint venture partner and contractor for the power plant in December this year.
The investment plans for the project have not been finalized, but initial estimates show the project will cost 150-180 million dollars, it said.
most likely partner : aev
Philippines' Aboitiz To Consolidate Hydropower Operations
MANILA (Dow Jones)--Aboitiz Equity Ventures Inc. (AEV.PH), a Philippine holding concern, said Monday the operations of its hydropower generating units will merge into a single unit.
In a disclosure to the Philippine Stock Exchange, the holding group said Hedcor Inc., Hydro-Electric Development Corp., and Northern Mini Hydro Corp. signed an agreement to merge into a single operating concern with Hedcor as the surviving entity.
"The move will simplify and streamline business operations, optimize the use of resources, and position AEV (Aboitiz) for growth in an increasingly competitive energy environment," said the holding company.
Upon the completion of the consolidation, Hedcor will have control over generating assets and interests worth PHP3.3 billion, said Aboitiz. The assets include 19 hydropower plants with a total installed capacity of 113 megawatts. The plants service customers in Benguet, Pampanga and Ilocos Sur provinces in northern Philippines, and Davao province in southern Philippines.
In 2004, the total revenue of the companies lined up for consolidation stood at PHP1.198 billion.
Following the consolidation, Hydro-Electric Development Corp. and Northern Mini Hydro Corp. will continue to exist as holding concerns whose main assets will be their respective shares in Hedcor.
Hedcor will absorb the 253 employees of the merged entities.
Looking forward, Aboitiz said it will be positioned to aggressively pursue opportunities from the privatization of state utility National Power Corp.'s (NAP.YY) hydropower assets as well as to develop new hydropower projects.
A SUBSIDIARY of Aboitiz Equity Ventures bought a power substation in Subic from the National Transmission Corp. (Transco).
Transco said on Thursday that it sold the substation to Subic Enerzone Corp. (SEZC) for P101.6 million.
Alan T. Ortiz, Transco president, and Jaime Jose Y. Aboitiz, SEZC president, signed the contract.
Ortiz said the 181-hectare central business district at the Subic Bay Freeport will benefit from the service improvements expected from the deal.
“As what we have been saying all along, the divestment of Transco’s subtransmission assets to qualified distribution utilities would lead to increased reliability, security and affordability of electricity,” he said.
The sale completes the Aboitiz group’s acquisition of Transco’s su-transmission assets in the economic zone.
On April 28, SEZC purchased 7.24 circuit kilometers of subtransmission lines comprising the Olongapo-SBMA Lines 1, 2 and 3; the Subic-SBMA Line 4; and the disconnection switches at the Kalaklan Metering Point.
Earlier contracts signed with the Aboitiz group, through its subsidiaries, include the sale of 11.99 circuit kilometers of 69-kilovolt lines in San Fernando, Pampanga, to the San Fernando Light and Power Corp.; 14.89 circuit kilometers of 69-kilovolt line in Davao to the Davao Light and Power Co.; and 5.93 circuit kilometers of 69-kilovolt lines in Cebu to the Visayan Electric Co.
As in the 15 earlier lease-purchase contracts signed by Transco, the Energy Regulatory Commission, however, has yet to approve the deal with SEZC.
--Paul Anthony A. Isla
Tsuneishi's expansion to meet rising orders
By Regina Aguilar
Tsuneishi Heavy Industries (Cebu) Inc. (THI) has started the implementation of a P335-million expansion of its port facility to address the rising orders for bulk carriers in the global market.
The 11.5-hectare facility will accommodate bulk carrier ships coming out from the assembly line that has an export value of more than US$500 million for years 2005 to 2006 alone.
Hitoshi Takahara, THI expansion project manager, earlier revealed that the company has set expansion projects including a third slipway to meet growing demands for bulk carriers from clients worldwide.
In fact, the port facility represents phase three of the company's expansion development project located in West Cebu Industrial Park Development Inc., Barangay Buanoy, Balamban, Cebu.
Aboitiz construction company Metaphil, on the other hand, is fast tracking the construction of the port facility to immediately accommodate the ships already assembled by THI.
THI has backlog orders of 40 ships up to year 2007.
According to Metaphil chief executive officer Roberto Aboitiz, THI is also getting ready to accommodate building car carrier ships in their facility in the West Cebu Industrial Park in the municipality of Balamban.
"This would mean more opportunity for the economy of Balamban," Aboitiz said.
In fact, THI has increased its workforce to 5,100 this year from 3,600 last year.
THI is the largest taxpayer in Balamban, which is now considered as one of the shipbuilding capitals in Asia, Aboitiz said.
The Philippines is now the fourth top shipbuilding country in the world, according to Aboitiz.
Currently, Korea is the world's top producer in the ship manufacturing industry, followed by Japan and China.
All workers in THI, save for some 30 Japanese consultants, are Filipinos.
Last year, THI recorded a total payroll of around $30 million.
THI was also included as one of the top five exporters in the region last year.
The company manufactures bulk carrier ships, which have a market selling price of around US$19-29 million for the 52,000-dead-weight-ton type.
THI started operations in 1994 with a total investment of US$110 million and has built 43 bulk carrier ships since 1997. The company has helped bring development to Balamban
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