PUBLIC offering. Here is the good news. PNOC Exploration Corp. (PNOC-EC) reported net profit of P1.709 billion in the first nine months of 2010, up 18.162 percent from P1.446 billion in the same period in 2009. These profits resulted from revenues which increased 41.505 percent to P7.034 billion from PP4.971 billion during two comparable periods. With these profits, PNOC-EC reported retained earnings of P9.159 billion. These numbers suggest that it may be time for the government to share the company’s profits with the public who may want to buy PNOC-EC shares which the Philippine National Oil Co. (PNOC) can sell through an initial public offering (IPO). As of now PNOC-EC is almost 100-percent owned by PNOC with only a few shares held by a individual investors. As of December 31, 2010, PNOC owned—and still owns—1,997,785,480 shares, or 99.78927 percent, leaving outsiders with 4,218,785 shares. To become not only listed but more importantly public, PNOC-EC should have public ownership of 10 percent as required under the rule which would translate to a total of 200,200,426 shares. The IPO shares should come from PNOC holdings. Paging chairman Mel Lopez.
Charter change. Holcim Philippines Inc. is deleting mining among the businesses it is undertaking from its primary purpose but is expanding the marketing of the cement it produces to include export. In addition Holcim said in a filing posted on the website of the Philippine Stock Exchange that it will also “engage in the business of purchasing, developing, selling, exchanging and holding for investment or otherwise, real estate of all kinds” The cement company will submit this amendment, along with the extension of its corporate term for another 50 years, for ratification by its stockholders in the company’s annual meeting on May 12. Holcim’s 50-year franchise approved by the Securities and Exchange Commission will expire on November 12, 2014. Its majority stockholder is Union Cement Holdings Corp. with 3.906 billion shares, or 60.55 percent. Others owners include Holderfin B.V. De Lairessestraat of The Netherlands with 1.149 billion shares, or 17.80 percent, and Sumitomo Osaka Cement Co. Ltd. of Japan with 594.953 million shares, or 9.22 percent. Holcim closed yesterday at P13, its 30-day high.
Income results. Philippine Long Distance Telephone Co. (PLDT) has been reporting the good news to the public, particularly the company’s stockholders, among them outside First Pacific Co. Ltd. and NTT Group of Japan. The good news is that it continues to be profitable. In 2009, PLDT’s net income surged 13.590 percent from P35.298 billion in 2008 to P40.095 billion in 2009 and to P40.259 billion in 2010. A filing shows PLDT’s profitability resulted from revenues which dropped 2.388 percent to P144.459 billion in 2010 from P147.993 billion in 2009. In 2008, it reported revenues of P145.582 billion. Its expenses in the last two years also declined to P88.903 billion from P90.111 billion. In 2008, it recorded expenses of P85.786 billion. With its continuing profitability, PLDT has piled up retained earnings of P36.594 billion, which is 38.642 times its paid-up capital of P947 million. This only means PLDT has so much money available for declaration as dividend either in cash or in stock.
Right timing. Gerardo C. Ablaza Jr., a director of Globe Telecom Inc., grossed P9,833,170 from his sale of 10,000 Globe shares on March 31 and 1,000 shares on April 4 at an average price of P893.935 each. Globe closed yesterday at P839. It hit a high of P920 on March 31. After the sale, Ablaza owned 38,975 Globe shares of which 3,654 shares are lodged with Philippine Central Depository Inc. Antonio Chua Poe Eng sold a total of 92,800 shares in Jollibee Foods Corp. at prices ranging from a low of P87.5753 to a high of P89.7870 each, for total proceeds of P8,212,713.60. After the sale, he indirectly owned 3,498,325 shares as of April 5. Jollibee shares held by Honeyworth Corp. Jollibee closed yesterday at P86.45. It registered a 30-day high of P93.10 during yesterday’s session. ALG Holdings Corp. bought a total of 2.04 million shares in Filinvest Development Corp. (FDC) at prices ranging from a high of P4.15 each to a high of P4.45. The acquisition increased ALG’s FDC shares to more than 6.873 billion or 91.57 percent.
