By Jenniffer B. Austria
Posted on 08 Oct 2012 at 12:02am
Conglomerate Ayala Corp. said it expects earnings from recent investments in the power sector to start contributing “significantly” to the balance sheet over the medium-term period.
The group, according to a prospectus filed with the Securities and Exchange Commission for its planned P10-billion fixed rate bonds, plans to build a portfolio of power assets with significant portion and transport infrastructure holdings that can provide synergistic value to existing businesses.
Ayala Corp., through unit AC Energy Holdings Inc., is embarking on power projects around that country that can generate 1,000 megawatts of capacity in the next five years at a cost of $2.5 billion.
About 20 percent of the 1,000-MW power portfolio will come from renewable energy projects.
Ayala earlier teamed up with Mitsubishi Corp. to form PhilNewEnergy Inc., which is pursuing the construction of the P7-billion Darong solar power project in Sta. Cruz, Davao del Sur.
It will also develop wind power projects in joint venture with Northwind Power Development Corp.
It recently teamed up with A Brown Co. Inc. to put up a 135-megawatt coal power plant in Iloilo that could cost at least P12.5 billion.
The conglomerate said it expects earnings growth to remain stable over the near- term period, driven by the strong growth of the real estate business, the sustained strong performance of its banking unit and the steady expansion of the water business.
The core earnings of its telecommunications unit, Globe Telecom Inc., is also expected to sustain a steady growth momentum. The conglomerate conceded that reported earnings might be tempered in the short term by the accelerated depreciation of certain assets as a result of its network modernization program, which will render some equipment obsolete.
“However, its medium-term growth trajectory is expected to be strong as it benefits from the enhanced network capacities and capabilities,” Ayala Corp. said.
Its international businesses in electronics manufacturing and business process outsourcing are also expected to recover along with the improved global economy.
“Ayala’s financial position provides adequate capacity to invest in these new areas given its strong cash position and low gearing. Dividend flows to the company have also increased significantly over the past few years and this is a trend that is expected to be sustained as the operating cash flow of business units continues to improve,” the company said. source
No comments:
Post a Comment