By the numbers. Manila Electric Co. (Meralco) bought more electricity from the government-owned National Power Corp. (NPC) in 2007 than it did from Lopez-owned independent power producers. The company’s audited financial statements posted on the web site of the Philippine Stock Exchange on April 29,  show the following footnotes: “Total purchased power from NPC amounted to P53.986 billion and P41.564 billion for the years ended December 31, 2007 and 2006, respectively.”

In addition, NPC-owned National Transmission Corp. (TransCo) billed Meralco P19.243 billion and P16.173 billion in 2007 and 2006. These amounts bring NPC’s billings from Meralco to P130.966 billion—P73.229 billion in 2007, up 26.836 percent from P57.737 billion in 2006. The company’s 2007 financial reports show the two separate entries on NPC’s billings – one for power sold and one for use of NPC’s transmission lines. The segregation was in accordance with the implementation of NPC’s unbundled charges starting September 26, 2002. Under Republic Act 9136, which created it, TransCo takes over the NPC’s transmission function. On the other hand, the same disclosure details Meralco’s “purchases from “related parties,” which dropped 6.236 percent to P54.309 billion in 2007 from P57.921 billion in 2006. The amounts included power purchases by First Gas Power Corp. —P34.877 billion in 2007 and P37.599 billion in 2006, and by First Gas Corp.—P17.093 billion in 2007 and P18.617 billion in 2006.  

BIR’s billion takes. Here is good news for Meralco’s stockholders including the Government Service Insurance System. Meralco has a pending claim for tax overpayment, which the Bureau of Internal Revenue (BIR) wants to keep as it refused to recognize “on the ground of prescription.” The company originally computed its claim at P8.972 billion, which it said resulted from the “income tax effect of the P0.167 per kWh rate” which was “illegally” collected from February 1994 to December 31, 2002 and which it returned to its customers— pro rata—on order by the Supreme Court (SC). The overpayment has since gone down to P6.69 billion. In a filing, Meralco told regulators that it has asked the BIR for a ruling or confirmation that the refund of rollback rates as ordered by the SC “is deductible from gross income.” Meralco said the issue on prescription, which is a mere technicality, is now pending resolution by the Court of Tax Appeals. The customer’s refund originally amounted to P30.055 billion of which P15.659 billion has been paid as of December 31, 2007. 

Stock watch. Philippine National Bank (PNB) has been inching up lately on its planned merger with Allied Banking Corp. On Tuesday, it reached a high of P34, fell to P31.50, its opening, and closed at P33.50. In the last two months, it first breached P30 on April 30,  when it opened at P28 and closed at P30.50, its high during the session. On May 2, it peaked at P33.50 after opening at P32 and closed at P31.50. PNB started trading at P31 on May 6, and closed at its high of P31.50. A filing with showed the merger plan has valued PNB shares at P55 each. At 30-day high of P33.50, this valuation translates to 64.179-percent premium over market. In turn, this means an Allied Bank’s common share, which has par value of P1,000 against PNB’s P40, costs P7,700, while a preferred share, which will be exchanged for 30.73 PNB shares, is worth P1,690.15. 

Ownership update. Businessman Henry Sy Sr. and the three companies he and his family control own 32.443 million shares, or 42.09 percent, in China Banking Corp. Of these shares, Sy owns 18.924 million shares, or 24.551 percent, including 2.843 million shares, or 3.689 percent, which he directly owns. The three SM companies hold the rest of the family’s holdings in China Bank—SM Investments Corp. with 12.570 million shares; Shoemart Inc., 3.824 million shares; and Sysmart Inc., 13.207 million shares. Of these holdings, Sy owns 2.237 million China Bank shares held by SMIC due his 16.307-percent ownership; 638,915 shares held by Shoemart, due his 4.96-percent ownership; and 13.204 million shares held by Sysmart, due his 99.98-percent ownership. Sy Sr. is honorary chairman of China Bank.

THE Philippine Long Distance Telephone Co. (PLDT) group’s plan to launch a direct-to-home (DTH) satellite television service is seen to finally take off this year, as it earmarks P700 million as initial investment.

P&G opens depot, sees larger demand

Consumer manufacturing giant Procter and Gamble (P&G) is preparing for the continued growth in the demand for its consumer products as evidenced by the expansion of its distribution center in Cabuyao, Laguna.

A network disruption was blamed for the slow take-up of Globe Telecom mobile-phone subscribers in the first quarter, company president Gerardo Ablaza said yesterday.

THE first-ever giant electronic display board, carrying real-time stock market information and positive news around the country, was formally unveiled Wednesday by a group led by the Philippine Stock Exchange (PSE).

Manila Electric Co. (Meralco) bought more electricity from the government-owned National Power Corp. (NPC) in 2007 than it did from Lopez-owned independent power producers.