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LT Group profit down 6 percent to P19.2 billion
LT Group Inc., the holding firm for the businesses of taipan Lucio Tan, posted a decline in earnings in the nine months ending September due to lower contribution from its tobacco business......»»
AbaCore turns around, earns P308M until June
Diversified holding firm AbaCore Capital Holdings Inc. reported a net income of P308.8 million, or P0.0722 per share, in the first half, which was a complete reversal of a P15.5 million, or P0.0025 per share, loss a year ago. The net income growth is primarily attributed to a gain of P278.8 million from the sale of an investment property. Other sources of income for the quarter include a gain of P75.8 million from the sale of an investment in a subsidiary and an interest income of P10.8 million. 77% of 2022 income ABA’s net income thus far in the year is already 77 percent of its operating income for 2022, a testament to the momentum the company is enjoying about the business ventures it has entered in recent years. For the second quarter, ABA recorded a net income of P858,776 compared to a net loss of P2.3 million in the previous quarter. Income for the quarter primarily came from a gain of P28.9 million from the disposal of investment properties, and this was balanced by expenses of P30.7 million. The post AbaCore turns around, earns P308M until June appeared first on Daily Tribune......»»
Losing cash while holding it
Consulting firm Manulife Investment Management or MIM has presented a financial paradox in that an investor loses money kept in the vault for too long. Investors are increasingly concerned about market risks because of factors such as the increases in US Federal Reserve interest rates, individual banking crises, and increasingly serious geopolitical risks. As a result, many investors are reluctant to invest in the market, and some even sell their stocks and bonds to minimize losses. In response, banks offer higher deposit rates to appeal to investors, who choose to hold money in the form of term deposits. MIM, however, warned in a report that holding cash may seem like a good option during periods of market volatility, but cash remains vulnerable to inflation, especially in the current macroeconomic environment. Inflation erodes the purchasing power of cash, meaning it will buy less with it in the future. A simple calculation to prove the difference between holding cash versus stocks: Between 2011 and 2021, the return on cash (as measured by the annualized return of the three-month US Treasury bill) was 0.47 percent. Adjusted for inflation, which was 2.17 percent on average during those 10 years, the return was minus 1.7 percent. Put simply, $100,000 in Treasury bills in 2011 would have had $84,243.26 of buying power 10 years later. Conversely, over the same 10-year period, a $100,000 investment in the S&P/TSX composite dividend index, the stocks benchmark in Canada, would have resulted in $200,797.37 of buying power, thanks to its inflation-adjusted annualized return of 7.22 percent. In addition, investors should also consider how real interest rates (i.e. bank deposit rates minus inflation) affect their returns. From January to February 2023, the annual nominal interest rate on three-month term deposits in most Asian countries or regions varied from 2.5 percent to 5.4 percent. Then there’s deposit rates However, when adjusted for changes in the consumer price index during the same period, the real three-month time deposit annual interest rate ranged from negative 5.2 percent to 1.09 percent. “History tells us that equities, bonds, and some income-oriented investments have the potential to deliver higher long-term returns than cash and could potentially outstrip inflation,” MIM’s report stated. From 2009 to 2022, compounded annual nominal returns for Asian equities and bonds were 8.15 percent and 4.38 percent, respectively. Real estate investment trusts in the Asia-Pacific region generated an annualized return as high as 11.38 percent. The post Losing cash while holding it appeared first on Daily Tribune......»»
Cast callousness
Civic groups are demanding that the eminent corporation, San Miguel Corp., take on more sincere responsibility as a corporate citizen in its aggressive push toward profit maximization. When SMC held its annual stockholders’ meeting recently, some uninvited guests gathered outside its Mandaluyong headquarters to deliver their assessment of the company. But instead of profits, their report listed the conglomerate’s shortcomings, particularly in the communities where its businesses operate. Think tank Center for Energy, Ecology and Development said most of the projects which have a detrimental effect on communities are the energy projects to which the food giant is now transitioning in a big way. As one of the country’s oldest and largest conglomerates and through its various products and services, SMC “has intrinsically woven itself into the everyday lives of millions of Filipinos — with the ability to significantly impact their quality of living both positively and negatively.” CEED said SMC seems to be acutely aware of its effect on the lives of ordinary Filipinos with the adoption of the credo “World made better.” Residents of communities where SMC power plants are located wrote their stockholders about the impact of the conglomerate’s projects on them. The petitioners sought the shareholders’ intercession “to rein in SMC’s continued expansion of fossil fuel projects, particularly gas, for the country’s energy grid.” The letter also warned the stockholders of the financial risks they were assuming with the business path taken by SMC. The concerned groups warned the shareholders of the likely impact of the company’s headlong rush into the business projects. SMC’s energy subsidiary has been projected by Bloomberg to have a funding shortfall of as high as $1 billion by this time. Importing liquefied natural gas also means adding to the risk of more oil spills like what happened in Oriental Mindoro, when a unit of the giant firm chartered a ship that ultimately sank and is now leaking industrial fuel oil into waters that used to give local fishermen a good livelihood. It is incumbent upon the company to repay in kind the Filipinos from whose loyalty the company has been reaping financial gains. In 2022, SMC reported a strong revenue of P1.5 trillion, topping the P1-trillion net income in pre-pandemic 2019. In the first quarter of 2023, SMC’s revenue reached P346.7 billion, nine percent higher than a year ago. In 2022, operating income went upward to P134.5 billion, or 10 percent from the previous year. This income was made possible by the key businesses of the company such as Petron, San Miguel Food and Beverage, San Miguel Packaging, and SMC Infrastructure. On the other hand, the consolidated net income of the company went down to P43.2 billion due to the impact of unrealized losses on the revaluation of its foreign currency-dominated long-term debt. In the first quarter of 2023, the consolidated operating income was up 8 percent or P35.1 billion. Meralco’s mea culpa In a contrasting move, power distributor Meralco owned up to a subsidiary’s fault in causing the 9 June power disruption at the main gateway, Ninoy Aquino International Airport. MServ, in the presence of MIAA personnel, was conducting a test of NAIA Terminal 3’s electrical facilities when the brief power outage occurred last Friday. Meralco entirely owns MServ which was supposedly holding a comprehensive technical audit aimed at improving NAIA Terminal 3’s electrical system following the outage that hit the airport terminal last 1 May. According to an incident report, an MServ technician accidentally left grounding conductors attached to electrical equipment during a test, which triggered an electrical fault at 12:50 p.m. that subsequently caused the power interruption at Terminal 3. The post Cast callousness appeared first on Daily Tribune......»»
Fried in own lard
While the National Transmission Corp. or TransCo concessionaire National Grid Corp. of the Philippines has been awash with cash as reflected in its billions of pesos of early dividends, it has not paid the government P3 billion plus interest on transmission fees before 2009 when the private firm took over operations of the power grid. The amount represents collections from power plants to which TransCo is entitled but remains unremitted. Under a privatization program, former President Gloria Macapagal-Arroyo approved a plan to privatize TransCo through a 25-year Operation and Management Concession Agreement. The bidding for the license to run the Philippine power grid was won by the NGCP in 2007, while Congress approved the bicameral resolution granting its franchise in 2008, and PGMA signed RA8511 into law, granting NGCP its franchise. On 15 January 2009, TransCo turned over the management of the country’s power grid to NGCP. TransCo, owner of the electricity network, and energy assets holding firm Power Sector and Liabilities Management Corp. have been demanding the payment of the amount. An energy official said the government can use the money to reduce power rates by deducting this from the monthly bills under the item universal charges. Universal charges include the so-called stranded costs or payables to Independent Power Producers that PSALM assumed from state firm National Power Corp. Instead, the energy official suspects NGCP used the withheld payments for its benefit to consistently pay fat dividends to its shareholders. In the recent Senate inquiry on the power industry, NGCP said of its P20.3 billion net income in 2019, P15 billion, or around 74 percent, went to dividends. In 2017, around 90 percent of its P20.6 billion net income went to dividends. For 2015, the NGCP distributed around 93 percent of its P22.5 billion profit as payouts to shareholders. The company particularly made its investors happy in 2014, when it said dividends exceeded its net income or P24 billion handed to stockholders against P22 billion in profit. Counting the potential interest, an energy source said the receivables from NGCP have now ballooned to more than P6 billion. NGCP’s rampant violation of the provisions of the concession agreement had resulted in a serious financial drain on the government. The provisions of the 2009 deal, which included the settling of all arrears such as the TransCo collectibles, also provided separate audited accounts for each related business and the need for NGCP to hold an initial public offering that it skirted through the back door listing of a holding company. TransCo’s financial claim from NGCP was upheld by an opinion on 18 April 2012 by the Office of the Government Corporate Counsel. “TransCo has already acquired immutable vested rights over the contested revenues,” the OGCC decision indicated. “Public policy considerations and the public nature of the receivables impose upon TransCo the obligation to recover the disputed amount for its benefit,” it added. NGCP holds a renewable 25-year concession contract and a 50-year franchise to operate the power transmission network in the country. Since the agreement was signed in 2009, the contract will run until 2034 and from then, the government has the option to renew it for another 25 years. An audit that has long been blocked by NGCP should happen and from there, the government should muster the will to take the necessary steps if abuse is found in the performance of the provisions of the concession agreement. The post Fried in own lard appeared first on Daily Tribune......»»
LT3 now kingpin at PAL Holdings
The Lucio Tan group’s wunderkind Lucio Tan III took another key post in the diversified conglomerate as he was appointed president of PAL Holdings Inc., taking over the post from his grandfather Dr. Lucio C. Tan. The patriarch retained his role as chairman and chief executive officer. “As the newly designated president of PAL Holdings, I am committed to providing stability and upholding the highest level of integrity within the company. I look forward to working closely with the PAL team, under the leadership of its president and COO, Capt. Stanley Ng, to ensure a collaborative and cohesive approach in serving the best interests of our customers,” Tan said. The heir of the huge LT empire said he aims to foster a culture of transparency, accountability and long-term value creation at the company. PAL Holdings registered a total consolidated operating income of P17 billion in 2022, a turnaround from an operating loss of P4 billion in 2021. “I am grateful to our shareholders, our customers, the flying public, for their trust and support. We face major challenges just the same. We need to rebuild our product and our fleet. Philippine Airlines needs to be a stronger competitor and a leader in service and innovation,” chairman Tan said. PAL Holdings is the parent firm of PAL and another subsidiary Air Philippines Corporation. Strategic leadership positions Lucio III recently assumed the presidency at the Lucio Tan Group. He replaced his uncle Michael Tan, who had been LTG president since 2010 and had helped the company transform into a multi-billion pesos conglomerate. The post LT3 now kingpin at PAL Holdings appeared first on Daily Tribune......»»
LT Group transitions to 3rd Gen leadership
Taipan Lucio Tan’s investment holding firm, LT Group Inc., has officially transitioned into its new leadership after capping 2022 with its highest ever profit of P25.1 billion, higher by 24 percent than the P20.25 billion reported in 2021......»»
Lucio Co companies report solid growth
Cosco Capital Inc., the investment holding firm of retail tycoon Lucio Co, reported strong growth last year on the back of robust sales......»»
SMIC sustains profit momentum, grows earnings by 50% to P43 billion
SM Investments Corp., the Sy family’s investment holding firm, reported a consolidated net income of P42.9 billion in the January to September period this year, higher by 50 percent from P28.6 billion in the same period last year......»»
Benguet triples 2020 net income
Listed mining firm Benguet Corp. more than tripled its net income last year to P381.4 million, driven by the resumption of its Zambales operations and better gold prices......»»
LT Group reports P6.5b income in first quarter
LT Group Inc., the listed holding company of beer and tobacco tycoon Lucio Tan, said Tuesday attributable net income in the first quarter climbed 4.5 percent to P6.5 billion from a year ago, on steady contribution from tobacco and banking businesses......»»
LT Group income up 4.5% to P6.49 billion in Q1
LT Group Inc., Lucio Tan’s listed holding company, reported a first quarter net income of P6.49 billion, up 4.5 percent from P6.21 billion a year ago......»»
LT Group declares P21B net earnings supported by tobacco, liquor revenues
LT Group Inc., the listed holding company of beer and tobacco tycoon Lucio Tan, reported an unaudited attributable net income of P21.02 billion in 2020, down 9.1 percent from P23.1 billion in 2019......»»
LT Group profit rises to P16B in Jan-Sept
Listed LT Group Inc. reported on Friday its attributable net income jumped to P16.1 billion in January to September on the back of the improved earnings of most of its subsidiaries. The holding company of tycoon Lucio Tan said in a filing on Friday that the latest amount was a 9-percent improvement from P14.72 billion […].....»»
LT Group& rsquo;s net income grew 9% to P16.1 billion in nine months
LT Group Inc., the listed holding company of tycoon Lucio Tan, said Friday net income grew 9 percent in the first nine months to P16.1 billion from P14.72 billion in the same period last year on strong results from tobacco and liquor businesses......»»
Alliance Global hikes profit in Q3
Alliance Global Group Inc., the investment holding firm of tycoon Andrew Tan, posted an improvement in net income to P2.2 billion in the third quarter from P156 million in the second quarter......»»
LT Group& rsquo;s income climbed 9% to P10 billion in first half
LT Group Inc., the listed holding company of billionaire Lucio Tan, said net income increased by 9 percent in the first half to P10 billion from a year ago, driven by the strong performance of its tobacco, liquor and real estate businesses......»»
LTG earnings up 9% in 7 months
LT Group Inc., the listed holding company of taipan Lucio Tan, grew its first half net income by nine percent to P10.03 billion......»»
LT Group income slightly up in 2023
Earnings of tycoon Lucio Tan’s LT Group Inc. saw a slight improvement last year as higher contributions from its banking, liquor and property units offset the slowdown in the tobacco business......»»
ACEN FY23 profit: P7.4-B (down 43%)
ACEN, the Zobel Family’s renewable energy holding company, posted an FY23 net income of P7.4 billion, which was 43% lower than the P8.6 billion it made in FY22......»»