Aboitiz Power issuing P15B worth of bonds

By: Ronnel W. Domingo - 05:34 AM August 31, 2018

http://business.inquirer.net/256421/aboitiz-power-issuing-p15b-worth-bonds

Aboitiz Power Corp. plans to issue in the fourth quarter of the year up to P15 billion worth of bonds, with the proceeds intended mainly to help address its financial obligations.

AboitizPower said in a regulatory filing that the issue would be the second tranche of a P30-billion package under its shelf registration with the Securities and Exchange Commission.

“The second-tranche bonds, equivalent to P10 billion and with an oversubscription option of up to P5 billion, are expected to be offered to the public during the fourth quarter of 2018,” it said.

AboitizPower said it would use the proceeds to refinance the medium-term loan of its wholly owned subsidiary Therma Power Inc., repay its short-term loan obligations, and for general corporate purposes.

BDO Capital Corp. was appointed as issue manager as well as joint lead underwriter with BPI Capital Corp. and United Coconut Planters Bank.

Also, AboitizPower said Philippine Ratings Services Corp. gave the planned issue a credit rating of “PRS Aaa” with a stable outlook.

A PRS Aaa rating means the issue is “of the highest quality with minimal credit risk, an indication of the extremely strong capacity of the obligor to meet its financial commitment on the obligation.”

A stable outlook means the rating is likely to be maintained or to remain unchanged in the next 12 months.

Citing a PhilRatings statement, AboitizPower said the rating and outlook were assigned based on the issuer’s significant levels of cash flows and financial flexibility in relation to debt service requirements; adequate capital structure supported by healthy growth in retained earnings; diversified portfolio, with good growth prospects, and experienced management team.

NGCP faces right-of-way challenges in P52-B power interconnection project

August 31, 2018 | 12:02 am

http://www.bworldonline.com/ngcp-faces-right-of-way-challenges-in-p52-b-power-interconnection-project/

DAVAO CITY — The National Grid Corporation of the Philippines (NGCP) is facing challenges in land acquisition for the Mindanao-Visayas Interconnection Project (MVIP), but assured that the P52-billion infrastructure remains on track for the 2020 target completion.

NGCP Communications and Public Affairs Officer Michael O. Ligalig said the challenges include valuation negotiations with landowners, and uncertain ownership due to absence of proper land titles with sometimes two claimants.

“We have to resolve first all the right-of-way concerns (to avoid stalling the project rollout),” Mr. Ligalig said at a media forum here.

He said they started negotiating with lot owners as early as 2017 and some cases have been filed in court to resolve conflicts.

The MVIP will link Mindanao to the interconnected Luzon-Visayas grid, creating a nationwide network for power supply.

The connecting points are southern Cebu in the Visayas and Zamboanga del Norte, Zamboanga del Sur, and Lanao del Norte in Mindanao.

Mr. Ligalig said Zamboanga del Norte is one of the areas where there are right-of-way issues.

The MVIP will involve submarine cables spanning 184 circuit-kilometers and 526 circuit-kilometers of overhead lines.

NGCP plans to begin laying underwater cables by next year.

“There is no problem in underwater cabling, only inland acquisition,” Mr. Ligalig said. — Maya M. Padillo

DM Consunji expects to end 2018 with higher orders

By VG Cabuag- August 30, 2018

https://businessmirror.com.ph/dm-consunji-expects-to-end-2018-with-higher-orders/

DM Consunji Inc., the construction arm of DMCI Holdings Inc., said it expects to end the year with higher booked orders compared with last year’s despite the lackluster performance of government infrastructure projects.

As of June 30, the company’s order book was at P29 billion, mostly in buildings and infrastructure, and these are likely to be higher by the end of the year, the company said.

DMCI’s construction arm posted a revenue of P7.2 billion for the first half of 2018, driven by the performance of the building and infrastructure business units. The figure is 13 percent higher compared to the P6.4 billion posted in the same period last year.

This can be attributed to the increase in the number of completed projects during the earlier part of the year, it said.

For the first half, its net income reached P676 million, higher compared with the P497 million made during the same period last year. This was brought about by higher gross- profit percentage of the business units due to late approval of variation orders already accomplished in the previous period.

Buildings grew their revenue by 48 percent in the first semester, due to more projects completed during the first half of 2018, as compared to last year’s first six months.

“Better performance is expected from the business unit due to ongoing projects, as well as newly awarded projects that will commence later this year,” it said.

“The building business unit also continues to actively participate in ongoing bids and negotiations. The company is confident \ these developments will further strengthen the portfolio for the coming year,” it said.

Revenues of the infrastructure unit fell by 9 percent compared to the same period last year, due to delays brought about by right-of-way issues. However, the recent development in the availability of right-of-way will help improve the company’s revenue for the rest of the year.

The ongoing bids and negotiations of privately funded projects, and the government’s rollout of the “Build, Build, Build” program, will help the company increase its order booking for next year.

The energy business unit generated higher revenues during the first semester due to the start of the JG Summit Petrochemical expansion, which was awarded at the beginning of this year.

The immediate resolution of government energy-related issues will improve the business unit’s order book.

Utilities and plants business unit also experienced a drop in revenue due to delays in the award of bidded projects earlier this year. The business unit is looking at improving revenues towards the end of 2018.

“Overall, we still maintain a positive outlook for DM Consunji Inc. for the second semester of this year,” company president and CEO Jorge A. Consunji said.

“We intend to be one of the major players participating in the rollout of infrastructure projects under the Build, Build, Build Program of the government, as well as in private construction projects.”

DMCI said earlier it is in talks with a Japanese firm to submit its unsolicited bid to construct the P50-billion, 38-kilometer Tutuban to Malolos stretch commuter train.