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Philippine Peso weakens anew

Roy — Thu, 28 Jul 2011 22:05:33 +0000

The Philippine Peso weakened on Thursday as an effect of investors concerns in the local economy. After hitting its strongest thus far in three years early this week, the peso closed at 42.17 against the US dollar on Thursday. Down by 6 centavos from Wednesday’s 42.11.

Traders said it was an effect on the concerns over the debt situation in the United States. With the August 2 deadline drawing near, the US Congress has yet to agree on the debt ceiling of the US government, without which, it will be prevented from borrowing more to raise funds for its maturing obligations.

When the US faults in its debt payment, it sends jitters in the international financial community. Because most emerging Asian markets, the Philippines included, have significant exposure in the US.

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DTI to bring SME Caravan to Antique

Roy — Sun, 15 May 2011 17:43:22 +0000

The Department of Trade and Industry (DTI) will bring business caravan to Antique. The DTI has chosen the province to be one of the sites for the Small and Medium Enterprises (SME) caravan which is slated on the 26th and 27th day of this month.

The trade department is encouraging businesses falling under the category of small and medium enterprises to take part in the said business caravan as it could be of great help for them because they would gain knowledge and skills in the field of their specialization.

The Micro, Small and Medium Enterprises (MSMEs) sector are considered by the national government as the backbone of the country’s economy. They contribute to employment and generate output for the economy. The government considers this sector as a vital link in dispensing new industries to the countryside and providing gainful employment. With this in mind, the government initiated a comprehensive and integrated strategies in sustaining the growth and development of the MSME sector, one of them is the SME Caravan.

Through the SME Caravan, the MSME’s could gain improved access to government and private sector services, particularly in areas where the provision of business services are limited. The caravan also aims to create awareness of SME’s various business development services that are available to them, both from the government and private sector.

During the business caravan, there would be resource speakers who will cover different business topics like Access to Markets, particularly Product Development and Marketing the Business, Packaging and Labeling, Product Costing and Pricing, and How to Participate in Trade Fairs.

For the finance said of business, the Access to Finance module will cover Business Plan Preparations, while the session on Productivity and Efficiency will cover topics such as Good Manufacturing Practices and Food Safety. The module on Entrepreneurship will cover Entrepreneurial Mindset and Opportunity Seeking lectures.

The seminars are free and DTI published information materials on MSMEs will be provided to each seminar participant.

Supporting the DTI in business caravan are different agencies and organizations like the Land Bank of Philippines, Development Bank of the Philippines, Provincial Government, TESDA, OPA, PPDO, DAR, the Sangguniang Panlalawigan and Non-Government Organizations.

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SM to build 200-room hotel in Davao

Roy — Wed, 11 May 2011 07:42:16 +0000

A new 200-room hotel in Davao City will be build by SM Investment Corp. It will be in Lanang district, adjacent to the SM shopping mall.

SM, in its disclosure to the Philippine Stock Exchange, said its wholly owned subsidiary SM Hotels and Convention Corp. signed a contract with Carlson, a privately held global hospitality and travel company, for the very first Park Inn by Radisson in Davao, as well as in the Asia-Pacific region.

The 200-room new hotel will be located inside the 175,000-square meter mixed-use complex owned and developed by SM shopping mall subsidiary, SM Prime Holdings, Inc. Aside from the hotel, the group also plans to construct an SM Supermall and a convenience center within the complex. The construction of the hotel will be started in the third quarter of 2011 and is expected to be operation by 2013.

Elizabeth Sy, SM Hotels and Convention president, said the signing of contract to open a Park Inn by Radisson in Davao City is just another step toward the fulfillment of the vision of her father, tycoon and SMIC founder Henry Sy, to make the Philippines a “world-class tourist destination.”

“We believe that Davao is an ideal location for such an undertaking because of its robust economy, vibrant population, and excellent infrastructure, including its international airport. In addition, the Park Inn Hotel will benefit from the business synergies that will be created with the other upcoming SM projects within the vicinity,” Sy said.

Park Inn by Radisson is one of the hotel brands under Carlson and is the largest mid-market brand for hotels under development in Europe. Radisson is also managing SMIC’s upscale hotel in Cebu.

Executive vice president and chief development officer at Carlson Hotels, Asia Pacific Xerxes Meher-Homji said, “With the tagline Sleep Well, Live Well, Park Inn by Radisson hotels offers a hassle-free, clean and comfortable stay at a reasonable price.”

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Wage Board increased COLA instead of salary

Roy — Mon, 09 May 2011 16:22:26 +0000

Private employees from Metro Manila will receive and additional P22 in their cost-of-living allowance (COLA) per day, in lieu of a wage increase. The Regional Tripartite Wages and Productivity Board-National Capital Region (RTWPB-NCR) approved Wage Order No. 16 increasing the COLA of employees. This will take effect 15 days after its publication on the daily newspapers on May 10, 2011.

Raymundo Agravante, chairman of RTWPB-NCR, said their main consideration in the decision was the argument presented by the employers during the deliberation. A wage increase will be an added cost on the part of the employers, while in COLA, overtime and other benefits are not affected.

Because while the additional allowance would bring the daily compensation to P426 per day, the basis for the computation of the overtime, night differentials, 13th-month pay, bonuses, retirement, and other benefits will still be the prevailing wage whose minimum rate still remains at P404 per day.

“In the end, the employers’ position was P20 COLA but we still managed to haggle P22 or a P2 additional allowance in anticipation of projected increase in prices of basic commodities,” Agravante said. He added that they also considered the warning of the Bangko Sentral ng Pilipinas (BSP) on the possible inflationary effect of giving more than P25 increase in daily compensation of workers.

Meanwhile, the Trade Union Congress of the Philippines (TUCP) slammed the decision. The TUCP said it was a measly wage increase in the form of COLA and called on Congress to rectify the decision.

Rafael Mapalo, spokesperson of TUCP, said “The RTWPB just missed this important opportunity to raise workers standard of living in NCR and to help improve equity as mandated by law. It further institutionalizes the primacy of profits over people, a few people over the masses of suffering workers. That was a shameless decision.”

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Taiwanese businessmen plan to relocate to the Philippines

Roy — Fri, 06 May 2011 08:51:26 +0000

Taiwanese businessmen are seriously considering relocating their manufacturing facilities to the Philippines from mainland China. The Manila Economic Cultural Office (MECO) said the decision was made by the Taiwan diplomatic row with the Philippines following their frustrations from the stringent labor requirements in China.

The Taiwanese businesses are engaged in industrial plastics manufacturing with estimated investments of at least $120 million, according to MECO chairman Amadeo R. Perez Jr. He said they are considering relocating their factories from China to Subic and Clark Freeport zones for their export-oriented investments.

Perez said that four plastic products manufacturers have already visited Subic and Clark and another will be coming over to visit Batangas and Clark. One company engaged in bed frames and mattresses production is eyeing a warehouse in Clark which it can is suitable and can be converted for its business. “One project alone can command at least $20 million in investments,” Perez said. For the six projects that would translate to an estimated $120 million worth of prospective investments.

The bed frame and mattresses manufacturer is exporting its products to the EU, Asia and the US while the plastic products manufacturers are producing industrial products which are used for packaging applications and are exporting them all over the world.

Perez added that some of the Taiwanese have already gone to Vietnam and Indonesia because those countries are not very choosy due to their high unemployment rate. He said Taiwanese investors in mainland China have been turned off by policy changes in the labor sector.

MECO is implementing a major campaign to attract more Taiwanese investors into the Philippines, following the successful resolution of the bilateral issue early this year. However, Perez said the country’s only problem is the high cost of electricity, and Vietnam and Indonesia could beat the Philippines on that factor.

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Aquino not keen on new taxes

Roy — Wed, 04 May 2011 12:25:21 +0000

President Benigno “Noynoy” Aquino III is not keen on new taxes just to increase the income of the government, instead he said that existing tax exemptions or incentives should be reviewed. Aquino said that rationalization plan for fiscal incentives is being discussed and stressed that the government would continue on its efforts to increase revenues by improving tax collections.

“At this present time, none of my economic managers are indicating that there is such a need (for new taxes). And again, the priority still is improving the tax collection efficiency,” the president said. He also mentioned of a pending bill aiming to lift certain tax exemptions to address the need for a better system of collection and noted that some of the incentives are “outdated, not realistic,” compared to the others being given by the government.

The president said he already ordered his economic managers to study and review the fiscal rationalization plant of the government as well as tax incentives already given to multi-national companies in order to improve tax collection.

The International Monetary Fund (IMF) urged the Philippine government to broaden its tax base and strengthen tax administration by overhauling its excise tax system on sin products and rationalizing its fiscal incentives to raise much needed revenue to bankroll social and infrastructure spending. The IMF said this is crucial to the Aquino administration’s commitment to trim the budget deficit to two percent of gross domestic product starting 2013 from the current level of 3.3 percent of GDP.

The IMF’s latest Public Information Notice dated March 1 reads: “Achieving the deficit targets and increasing social and infrastructure spending will require substantial revenue efforts, including broadening the tax base and strengthening tax administration.”

The executive board of the IMF recommended early actions to reform excise taxes, rationalize fiscal incentives and address gaps in the value added tax (VAT), complemented by reforms to strengthen the budgetary framework, and control of the civil service wage bill.

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Transport firm to pioneer electric buses in the Philippines

Roy — Sun, 01 May 2011 14:57:44 +0000

Local transport firm Green Frog Zero Emission Transport Corp. dared to take the huge risk in the electric vehicle industry and expressed interest to buy some 3,000 electric buses in the next seven years, with the initial 38 units coming in from China within the year.

Green Frog director Philip Apostol said the 36-passenger buses will be fielded in Makati City with an P8 fare trip. The first 10 buses arriving midyear will ply the Buendia line while the 28 units will take other routes. The buses will initially ply a route that goes along Buendia from EDSA to the South Luzon Expressway (SLEX). Eventually, they will be available to commuters with the whole of Makati.

“The plan is to implement to project within 90 days after the signing of the MOA (memorandum of agreement) with the Makati LGU. This is a PPP (Public-Private-Partnership) with Makati,” he said. Apostol admits that cost of the e-buses was high, but hopes that the government “would work” with them.

He did not disclosed the cost of the electric buses but said that normally, the bigger electric buses would cost $300,000 (P13.5 million) each. Green Frog’s buses, however, will be smaller and would cost less.

The company is seeking tax perks, among other incentives, and a pioneer status from the Board of Investments, to make the project economically viable.

Negotiations by the company with banks and government financial institutions have been started, seeking for the best financing package. It also seeks some guarantees from the Philippine Export Import Credit Agency (PhilExim) to get lower interest rates.

Apostol said the half of the revenues will be coming from advertising income to help keep fares at reasonable levels during the initial roll-out.

Another Green Frog director, Servillano Batac, said talks were also ongoing between government and financial institutions for the mechanics of a “tap-and-go” system for the electric buses. “The idea is that you will be able to use your MRT (Metro Rail Transit) cards to pay our electric buses, just like in other countries,” he said.

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Diskwento Caravan rolls out of Metro Manila

Roy — Sun, 01 May 2011 11:38:46 +0000

The Diskwento Caravan (Discount Caravan) will soon roll out to areas outside Metro Manila to bring cheaper goods to more Filipino consumers.

Department of Trade and Industry (DTI) secretary Gregory L. Domingo said, “We also want consumers in various regions to experience the reduced prices of goods sold at the caravan which Metro Manila residents were afforded.”

Domingo instructed the agency’s regional and provincial directors to coordinate with manufacturers of prime and basic commodities to sell discounted products in provinces and allow consumers in the countryside to purchase products for as low as factory prices. The Diskwento Caravan is participated by manufacturers that sell their wares ranging from generic medicines, bread, sardines, cooking oil, processed meat, fruits, vegetables, detergent bars and school supplies.

The DTI chief said consumers should take this opportunity and take advantage of the discounts, most especially to households that are in need of school supplies for the coming school opening. “Enrollment is just a few days, students and mothers can shop for notebooks, crayolas, ballpens, pencils, etc. and expect big savings on these items.”

The trade department, however, was quick to point out that they do not directly compete with local retailers since the caravans are stationed far from commercial establishments and hosted in city halls and are under the supervision of the mayor’s office.

The schedule of the Diskwento Caravans are as follows: Bukidnon – April 27-28; Antique – May 4-5; Abra – May 10-11; Oriental Mindoro – May 18-19; Pangasinan – May 24-25; Surigao del Norte –May 30-31; Zambales – June 2-3; Zamboanga del Norte – June 7-8; Cagayan – June 14-15; Northern Samar – June 17-18; Sorsogon – June 22-23; Davao Oriental – June 28-29; Negros Oriental July 5-6; Quezon – July 14-15; and Saranggani – July 26-27.

In Metro Manila, the Diskwento Caravan will be at the DTI headquarters in Buendia Ave. corner Makati Ave – May 9 -10, Mandaluyong, May 16; Manila – May 30; Pateros – May 31; Taguig – June 1; Malabon – June 3. The Diskwento Caravans will be enhanced with jobs fair to be conducted by the Labor Department and the National Wages and Productivity Commission at the same venues and schedules.

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Philippine-China trade and conference fair set on June

Roy — Sun, 01 May 2011 08:56:27 +0000

The China Council for the Promotion of International Trade (CCPIT)-Guangzhou and Philippine Chamber of Commerce and Industry (PCCI) recently signed a cooperation agreement to co-organize the Manila-Guangzhou Trade and Investment Conference slated to be held on June.

The event, which is aimed to further boost the Philippine-China trade and investment relations, is expected to gather around 500 business leaders, industry captains and government officials from both countries.

Part of the activities of the conference will be a product promotion through a virtual trade fair which would feature top export products of China, and business matching activities. There will also be office and factory visits to be arranged for the estimated 200 businesses and industry leaders comprising the Chinese delegation.

PCCI President Dr. Francis Chua said, “The Philippines and Chinese’ economies are open to mutual cooperation in trade and investments. While initially, the idea behind the conference is to promote Chinese-manufactured products for export to the country, we are making it a point to ensure that local enterprises and industries get maximum exposure and gain from the visit of top-level Chinese businessmen. That is why we are arranging business meetings and site visitations on the sidelines of the conference.”

China is the country’s top trading partner with export receipts reaching US$51.39 billion in 2010. Data from the National Statistic Office (NSO) show that the combined markets of China and Hong Kong in 2010 accounted for about 19.52 percent of the Philippines’ total exports.

Guangzhou Vice President of CCPIT Madame Li San Jian said, “China is a very big market. With increasing domestic demand and infrastructure development, Philippine export products such as mineral-and-metal-based resources as well as processed and fresh food products can easily gain entry into the Chinese market.”

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Trans-Asia stock rights offer approved by PSE

Roy — Sat, 30 Apr 2011 06:19:03 +0000

The Trans-Asia Oil and Energy Development Corp.’s plan to raise fresh fund for power generation via stock rights offer was approved by the Philippine Stock Exchange (PSE).

The Phinma-led company got the nod from PSE when the latter posted a memorandum on Friday saying that its board has approved the listing of 1.16billion additional common shares to be issued by Trans-Asia to cover an equity offering to all shareholders. Each eligible shareholder is entitled to subscribe to seven right shares for every 10 existing shares held as of record date of May 18.

The offer price of P1 per share represents a discount of 21.9 percent on the market price of Trans-Asia as of March 21, which was the date the stock rights offer was approved by the board of Trans-Asia.

The net proceeds from the stock rights offer, based on the memorandum, would be used to partly finance Trans-Asia’s equity investment in the planned 135-megawatt clean coal plant in Calaca, Batangas and its investment in Maibarara geothermal power plant.

Trans-Asia tapped on the services of ATR KimEng Capital Partner Inc. to be the underwriter of the stock rights offering which would run from May 30 to June 3 this year.

The Phinma group, which is composed of Philippine Investments Management Inc. and Phinma Corp., the principal stockholders of Trans-Asia, pledged to subscribe to any shares not taken up by other eligible shareholders.

Trans-Asia was originally into petroleum exploration, and later diversified to other industries like cement manufacturing, coal trading and power generation. This year, the company expects to generate a net profit of P482.23 million, which is a considerable increase from the P14.74 million it posted a year ago. Revenue is projected to rise to P1.7 billion from P894 million in 2010.

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PLDT counters Globe’s claim

Roy — Sat, 30 Apr 2011 02:02:45 +0000

The Philippine Long Distance Telephone Co. (PLDT) said the claim of Globe Telecom that the deal between PLDT and Digital Telecommuncations Phil. Inc. (Digitel) would result into the monopoly of the telecom industry is only Globe’s way of protecting its interest at the public’s expense. PLDT criticized Globe’s effort to stop the deal that would allow the telecom giant to take over third-ranked mobile brand Sun Cellular.

PLDT said that the acquisition of Sun would actually result in a more efficient use of network facilities, which would lead to better services at lower costs. “Globe wants to create the impression of an impending monopoly by PLDT, which is not the case,” said Ray Espinosa, regulatory affairs head of the company. “What they really want is for the government to make up for their inefficiencies.”

Earlier, Globe asked the National Telecommunications Commission (NTC) to intervene in the deal between PLDT and Sun Cellular operator Digitel. Globe claimed that a monopoly would emerge from this deal and this could only work for the detriment of the industry and consumers. Globe also said that the deal would give the combined entity 3.5 frequencies for every one that Globe has, creating an imbalance.

Espinosa countered that based on the data available at the NTC, PLDT is in fact 23-percent more efficient than Globe in terms of frequency use. This means PLDT, which has 45 million subscribers, need more frequencies than Globe. He said Globe should instead allow market forces to work and let the consumers decide for themselves which is the better network.

With the claim that the PLDT-Digitel would give them 70 percent control of the market that would eventually kill competition, Espinosa said that at the end of the day, it all boils down on to which network can offer the better service, regardless of the size of the company.

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Philippine seeks investment-grade rating

Roy — Fri, 29 Apr 2011 04:51:12 +0000

The Philippine government believes that the country deserves a better credit rating, that is why it is wooing the three major credit rating agencies for an upgrade in its credit scores, amid the improving fiscal situation and external liquidity.

The three credit rating agencies – Moody’s Investors Service, Fitch Ratings, and Standard & Poor’s (S&P), were met separately by finance secretary Cesar Purisima when he went to New York and Washington D.C. recently.

Purisima presented fiscal and monetary data on the Philippines that he believes would encourage them to review and increase the country’s credit scores. Philippines is rated three notches below investment grade by Moody’s and two notches below by Fitch and S&P.

He also said the country has a credit score lower than Indonesia yet the fiscal situations of the two countries are just the same. Purisima also cited the country’s declining debt-to GDP [gross domestic product] ratio and deficit-to-GDP ratio. “Our debt rations and deficit are declining and our financial sector is well managed, and so we deserve better ratings,” he said.

During the meeting with the credit rating firms, Purisima said the three did not give a hint if they would change the country’s credit ratings soon, but he express optimism that the Philippines would finally get an investment-grade credit rating before the end of Aquino’s term.

The finance chief said the country has been able to borrow from the international markets at interest rates comparable to those applied to financing initiatives by investment-grade rated countries. Still, he stressed that getting a credit rating upgrade would be important in getting more foreign investments for the Philippines. “Much more funds will come in to the Philippines if we get investment grade,” Purisima said. He noted that some big-ticket business ventures have been using credit ratings in their decision-making.

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No wage increase announcement on Labor Day

Roy — Thu, 28 Apr 2011 17:37:41 +0000

The much anticipated announcement on Labor Day will not be heard this coming May 1. Secretary Rosalinda Baldoz of the Department of Labor and Employment (DOLE) clarified that there will be no announcement of wage increase on May, despite Malacañang’s pronouncement before that it is coming out with a Labor Day gift to help workers cope with the rising prices.

Baldoz said she has no idea what good news President Aquino was referring to but she was definite there won’t be any increase in salary because the earliest public hearing was set on May 2. She also noted that Aquino had already declared he would leave the decision on salary adjustments to the regional wage boards although he could give instructions to hasten the process.

But she assured workers that the wage boards could grant a salary increase within the month. “I think within the month of May, they should be able to finish the deliberation and come out with their decision,” Baldoz said.

Other officials from the labor department said the president could be referring to a package of non-wage benefits when it made the announcement that good news would be delivered on Labor Day. “The president I think would be announcing non-wage benefits for workers such as discounts and other assistance they would provide to help workers cope with the high cost of commodities,” said a labor official.

The labor department will be having a Jobs and Livelihood Fairs which will take place simultaneously all across the country on Labor Day. There are more than 100,000 jobs available In Metro Manila, which will be held at the Rizal Park, there are 200 companies and recruiters who will be offering 30,000 jobs to new graduates, displaces OFWs and other jobseekers. DOLE is encouraging job applicants to pre-register at the website of PhilJobNet to facilitate processing of application of the Labor Day job fair.

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Philippine tuna company acquires US salmon company

Roy — Thu, 28 Apr 2011 13:51:25 +0000

Philippine company Alliance Select Food International Inc. sealed a deal to acquire 100 percent of US company Spence & Co. Ltd., a Massachusetts-based salmon smoking and curing company who specializes in the production of smoked salmon and seafood, prepared in the Scottish tradition of its founder Alan Spence. The company caters to the high-end market in the USA and Europe.

The Alliance, in its disclosure to the Philippine Stock Exchange (PSE), said it had signed an agreement to acquired the US fish company lock, stock and barrel through subsidiary ASFI Choice Foods Inc. for $8.5 million.

Alliance spokesperson Rajat Balain said, “An investment in Spence is another step towards Alliance’s goal of diversifying its product line to enhance shareholder value and ensure future profitability. This will be Alliance’s third smoked salmon venture, making it the largest salmon processor in the region, and will help it establish a beachhead in the lucrative seafood market in the US.”

To partly finance the acquisition of Spence, Alliance will be conducting a stock rights offering. The company already gave the approval for the said offering. The PSE suspended trading of Alliance starting 9 a.m. Tuesday pending the submission of additional disclosure pertinent details on the transaction.

Alliance started commercial operations in General Santos City in Mindanao in 2004, it was formerly known as Alliance Tuna International and engages in tuna processing, canning and export of canned tuna products. It exports to Europe, North America, Asia, Africa and South America as a “private label manufacture,” which means it processes and cans tuna using its customer’s brands.

Part of its overseas expansion in recent years is the company’s aspirations to become a regional food company with a “decidedly Filipino DNA.” Alliance is always on the lookout for opportunities in regional seafood companies with high margins and high-value products.

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China auto company to open manufacturing facility in the Philippines

Roy — Mon, 25 Apr 2011 10:22:44 +0000

Chery Automobile Ltd. announced it will build a manufacturing facility in the Philippines which will be the company’s left hand drive manufacturing hub in the Southeast Asia. Chery Philippines sales marketing manager Raymond Tribdino said the manufacturing facility will be constructed in the next three years. He said, aside from serving the local market, the company also plans to sell Philippine made vehicles to the ASEAN market. They plan to build Philippine specific models for both passenger cars and small vehicles.

“We will have a local partner. We will subcontract. We are in the trial phase and we are working out the shares in the company. We are not sure how much the total investment will be, but normally, one line costs more than $10 million,” Tribdino explained.

He also added that they would like to bring in cheaper electric vehicles to the Philippines and ASEAN market, “For electric cars, we would like to introduce the first commercially available electric vehicle.” Tribdino said the lithium ion battery is 60 percent of the price. The Chery full electric vehicle is estimated to be at P1.8 million but it could be more. For a single charge, it can run up to 250 kilometers.

Chery Philippines is asking the government to grant them incentives like a parking lot with charging station, lower registration rate and zero percent import duty from China. The current import duty is 30 percent. If the said tariff is removed or is the same as AFTA at one percent, Tribdino said the small e-vehicle will be cheaper at P1.057 million. Although the vehicle is over P1 million, he said the running cost is low with the high cost of fuels.

Tribdino also said they are looking to beef up their local sales as Chery China took over from old distributors Easy Way Motors. The company bought Easy Way’s assets worth P150 million. He said they are looking at matching their 2010 sales target last year which was 1068 units. Their 2010 sales stood at 1,134 units.

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Pancake House posted P73.66 M net income for 2010

Roy — Sun, 24 Apr 2011 10:41:35 +0000

Pancake House Inc. reported a net income of P73.66 million for 2010, a figure which more than doubled the P35.56 million it posted in 2009. The Lorenzo-owned casual dining restaurant chain attributed the growth to its outlet consolidation and realignment of resources to profit-generating activities.

The company also owns and operates various other restaurant brands, aside from its flagship store Pancake House. These are Dencio’s Kabisera, Teriyaki Boy, Singkit Sizzlin’ Pepper Steak and Le Coeur De France.

Pancake House, in its financial report submitted to the Securities Exchange Commission (SEC), said consolidated revenues slightly went up to P1.84 billion from P1.82 billion due to the increased company-owned restaurant sales. Total system-wide sale of the group amounted to P2.3 billion, which translated to a compounded annual growth rate of 3.2 percent over a three-year period.

However, the company commissary sales fell 5.8 percent to P311 million due to several closure of franchised outlets awaiting relocations. On the other hand, its franchise revenues amounted to P87 million in 2010 compared to P86 million in 2009.

Pancake House management said it was successful in the implementation of its plans and programs such as expanded synergies among the seven brands, strategic purchasing and resource optimization despite the increasing cost of raw materials and supplies, rental and utility rates.

The company’s operating expenses for 2010 rose 6.7 percent to P624 million which it said were due to the rising trend of occupancy costs such as utilities, rent and electricity, among other. The consolidated EBITDA, however, remained strong at P720 million with a sustainable margin of 16.6 percent. This is due to the company’s efforts in mitigating the continuous increase in costs and intensifying its targeted marketing and promotional campaigns.

The group said it would continue to consolidate some outlets or relocate them in more strategic, high-traffic areas such as restaurants in hospitals, international terminals and business centers. As of end-December 2010, it had a total of 171 stores across the country.

Pancake House Inc. reported a net income of P73.66 million for 2010,

a figure which more than doubled the P35.56 million it posted in

2009. The Lorenzo-owned casual dining restaurant chain attributed the

growth to its outlet consolidation and realignment of resources to

profit-generating activities.

The company also owns and operates various other restaurant brands,

aside from its flagship store Pancake House. These are Dencio’s

Kabisera, Teriyaki Boy, Singkit Sizzlin’ Pepper Steak and Le Coeur De

France.

Pancake House, in its financial report submitted to the Securities

Exchange Commission (SEC), said consolidated revenues slightly went

up to P1.84 billion from P1.82 billion due to the increased company-

owned restaurant sales. Total system-wide sale of the group amounted

to P2.3 billion, which translated to a compounded annual growth rate

of 3.2 percent over a three-year period.

However, the company commissary sales fell 5.8 percent to P311

million due to several closure of franchised outlets awaiting

relocations. On the other hand, its franchise revenues amounted to

P87 million in 2010 compared to P86 million in 2009.

Pancake House management said it was successful in the implementation

of its plans and programs such as expanded synergies among the seven

brands, strategic purchasing and resource optimization despite the

increasing cost of raw materials and supplies, rental and utility

rates.

The company’s operating expenses for 2010 rose 6.7 percent to P624

million which it said were due to the rising trend of occupancy costs

such as utilities, rent and electricity, among other. The

consolidated EBITDA, however, remained strong at P720 million with a

sustainable margin of 16.6 percent. This is due to the company’s

efforts in mitigating the continuous increase in costs and

intensifying its targeted marketing and promotional campaigns.

The group said it would continue to consolidate some outlets or

relocate them in more strategic, high-traffic areas such as

restaurants in hospitals, international terminals and business

centers. As of end-December 2010, it had a total of 171 stores across

the country.

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DTI’s trade mission to India produces $42 M investment pledges

Roy — Fri, 22 Apr 2011 15:59:24 +0000

The Department of Trade and Industry (DTI) reported that their recent trade and investment mission in India have generated new investment pledges worth $42 million. Trade Secretary Gregory Domingo said they were from three energy projects and a pharmaceutical packaging ventures.

The Philippine delegates, led by Domingo, attended the recent ASEAN-India Business Fair and Conclave held in New Delhi in its bid to penetrate India’s trillion dollar market. Other members of the Philippine mission were the Department of Agriculture, Department of Tourism, Department of Foreign Affairs and the Philippine India Business Council of the Philippine Chamber of Commerce and Industry.

Domingo said he was able to convince Indian businessmen to invest in the Philippines during his first official trip, and the trade department’s first mission to India. “India is emerging as a source of foreign direct investments (FDIs) for the Philippines. Apart from BPO companies which are directed by their principals to open delivery centers in the Philippines, more Indian companies are continuing to realize the potential of the Philippines as a gateway to the lucrative ASEAN market,” he said.

The investment pledges acquired by DTI include two 20-megawatt stand-alone liquefied natural gas (LNG) power plants in Tawi-Tawi and in Cagayan as well as a 1.5-megawatt mini hydro electric power project in Abra.

According to Domingo, the trade department is working on several initiatives for Indian businessmen locating in the country which include the improved business registration procedures; and relaxed visa norms for senior executives of IT and BPO companies. Add to this, he also announced the recently inaugurated direct flights from Manila to New Delhi of the Philippine Airlines (PAL).

During their trip, Domingo also witnessed the signing of a memorandum of understanding (MOUs) between the Associated Chamber of Commerce in India (ASSOCHAM) and the Philippine Chamber of Commerce and Industry, and between the Federation of Indian Mining Industries and the Philippine Chamber of Mining Industries represented by Philip Romualdez, to promote trade, investments, and economic relations between India and the Philippines.

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PNOC-EC eyes expansion of coal production

Roy — Fri, 22 Apr 2011 12:35:27 +0000

The Philippine National Oil Company-Exploration Corporation (PNOC-EC) earmarked P900 million for the expansion of its coal mining ventures in Zamboanga Sibugay in Western Mindanao. The state-run oil exploration company said that its board of directors has already approved the special budget “to fund the development of existing coal mine” that will enable it to double its annual production of steaming coal to 500,000 metric tons.

The expansion is in line with company’s mandate to develop more sources of indigenous energy for the country’s needs. PNOC-EC’s coal mine in Zamboanga Sibugay is said to produce the highest grade of coal quality in the country. Developments in the mine are underpinned by the company’s coal operating contracts 41 and 152 as awarded by the Department of Energy.

Aside from its Zamboanga Sibugay mine, the company is likewise engaged in coal exploration and development activities in Isabela and Surigao del Sur via coal operating contracts 122, 141 and 140. PNOC-EC also operates coal terminals in Zamboanga Sibugay, Cebu, Batangas, and North Harbor for its integrated coal trading activities. These locations have been serving as handling facilities for local as well as imported coal which the company supplies to power plants and cement factories.

PNOC-EC is also into oil and gas exploration. It currently holds interest along prospect areas in Cagayan, Ragay Gulf, Offshore Mindoro, Calamian, West Calamian, West Balabac and East Sabina. Its biggest venture in oil and gas development to date is still the Malampaya deep water gas-to-power project. Its Service Contract (SC) 38 for the Malampaya field is only the acreage in the production phase; while the rest are still exploration blocks.

The company is also aligning a budget of $100 million for its next round of investment in the Malampaya project. Given its current financial standing, PNOC-EC noted that it is all set for capital infusion once the project consortium-members comes off for a “cash call.”

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President wants oil firms to open books to public

Roy — Thu, 21 Apr 2011 11:23:46 +0000

President Benigno “Noynoy” Aquino III yesterday said he wants oil companies to open their books to public scrutiny to prove that they were not taking advantage of the public in their series of oil price increases.

“That was my position ever since I have been in public service, isn’t it? If reasonable, why can’t they show it?” the President told reporters in an ambush interview at the Ninoy Aquino International Airport Terminal 3 in Parañaque where he led an inspection of the facility.

The president also asked the Deparment of Energy (DOE) to find way of simplifying the computation of prices for the benefit of the public. “It will show, demonstrate if prices are right or wrong. And again, they repeatedly answer that all sectors are involved in the computation, face to face, nothing is hidden from them as to how pump prices are arrived at,” Aquino said.

He said the secretary would always tell him that every time that they have been demonstrating the formula on how to arrive at prices, they have been very transparent to include even the militant transport group.

DOE’s director for Oil Industry Management Bureau Zenaida Monsada said the recent price hikes were higher than what the energy department’s computation. The DOE sent letters to the oil firms asking them to explain why they have a higher price increase that what official computation should indicate.

Chevron, after receiving the letter from DOE, rolls back it prices of its oil products a day after increasing the same. Petron, for its part, promised to freeze its prices during the Holy Week. “We have no plans of increasing this week,” the company said.

Meanwhile, Unioil Petroleum Philippines Inc. is offering its gasoline products for P50 per liter for a minimum of P1,000 purchases. The company said the promo is in line with its commitment to corporate social responsibility.

Aside from the request to open their books, the government is also planning to issue an executive order that would ban further oil price increases.

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Government plans EO to freeze oil prices

Roy — Thu, 21 Apr 2011 08:58:35 +0000

In response to the steady rising of oil prices, the Aquino government is planning to resort to “extreme legal measure” by issuing an executive order that would ban further oil price increases. The same has been done during the Arroyo administration when Executive Order was in issued in 2009 to freeze oil prices.

Department of Justice (DoJ) Secretary Leila de Lima said, “Talking about possibilities, there’s always such a possibility of coming up with an executive order freezing the oil prices. If it comes to that, it will basically and primarily be an executive decision or action.” She further added that such a measure would be “legally feasible.”

The DoJ, together with the Department of Energy (DOE), has mandates under the oil deregulation law to ensure that the oil price adjustments are reasonable.

The warning on an executive order to freeze oil prices came after the DOE demanded an explanation from oil firms whose recent price hikes were found out to be above the energy department’s prescribed adjustments based on a similar formula used by local firm. The Tuesday price increase was the 13th price hike implemented by oil companies this year.

Oil firms Shell, Chevron and Total increased prices of regular gasoline by 70 centavos liter; unleaded gasoline, 60 centavos; diesel, 25 centavos; and kerosene, 40 centavos as 6 a.m. on Tuesday. Per DOE’s computation, price hikes should have only been P0.16 per liter for diesel and P0.39 for gasoline.

Chevron, after receiving the letter from DOE, rolls back prices of regular gasoline by P0.70 per litter, unleaded gasoline by P0.60, diesel by P0.25 and kerosene by P0.40 by noon of Wednesday.

De Lima reiterated the plan to up a new body which will be called “DOJ Office for Competition,” which she said would “address cartels and restrictive agreements.” The proposed body would conduct “fact-finding investigations and determine whether violations of anti-trust and related laws are being committed by persons, natural and juridical.”

“Deregulation or privatization does not mean big business is free to do anything under the sun. Public welfare is paramount,” she stressed.

“This body will faithfully carry out constitutional and existing legal provisions against combinations in restraint of trade. Proceedings will depend on the specific industry and/or nature of the case,” De Lima added.