Petron investing $5B in Bataan refi nery

LISTED Petron Corp. is investing $5 billion to double the capa-city of

its Bataan refi nery in three years.

According to Petron pre-sident and CEO, Ramon Ang, the oil refi ner would expand the capacity of its refi nery by an initial 90,000 barrels per day (BPD) and another 90,000 BPD from its current 180,000 BPD output.

Petron took the option instead of putting up a new refi nery away from the Bataan facility.

“For our next refi nery expansion, we will be adding another 90,000 BPD. So from 180,000 BPD, we will be hitting 270,000 BPD,” he added.

“We can add another 90,000 BPD later on, we can ramp up the capacity or to produce more petrochemical,” he said. Adding this would entail a total investment of $5 billion — $1.5 billion for the fi rst 90,000 BPD phase and $3.5 billion for the expansion

THE Philippine Dealing and Exchange Corp. (PDEx), the country’s trading platform for fi xed-income securities, capped 2017 with another record high of over P200 billion in new debt listings.

The debt market closes the banner year with SMC Global Power Holdings Corp.’s listing of P20-billion worth of fi xed-rate bonds in Dec. 22, Friday.(See related item on Page 7)

“This listing is certainly a delightful way to cap this year for corporate bond issuances and listings, the area of activity which has

phase.“The next expansion, if

we’re going to add another 90,000 BPD, that would be $3.5 billion because the fi rst expansion is just a de-bottlenecking project of the existing refi nery. The next expansion will be like a totally new refi nery,” he said.

Petron will start the initial expansion this 2018, which can be completed by 2019. Meanwhile, the next phase can start in 2019 and fi nish by 2020, the Petron chief said.

The company had earlier said it was planning to build a new refi nery south of its Bataan facility — possibly in Bicol and Cebu.

However, it decided to raise the output of the existing refi nery to save on cost and time.

Last year, Petron com-missioned the $2-bil-lion Refi nery Master Plan 2 (RMP-2), allowing it to produce more high-value fuels and petrochemicals. It said costs have gone down since its 180,000 BPD

been the brightest for the fi xed income market in 2017,” Philippine Dealing System Group chairman and CEO, Cesar Crisol said.

He said the SMC Global listing is the 29th for the year and has pushed the total face amount of new bonds listed to P207.43 billion– a new record.

“We shall end 2017 with a total outstanding amount of bonds listed at P792.5 billion, now a long way from the 2008 year-end figure of P10 billion, and marking a compounded annual growth rate of 62.55% for the nine year

Bataan refi nery can now process cheaper crudes.

The upgrade is expected to foster Petron’s pro-fi tability toward end-2016 and this year due to improved margins from the upgrade of its refi nery, despite the continued drop in global crude prices.

Petron expects another banner year in 2017 due to robust sales volume, operational effi ciency with increased crude run at higher product yields, and effective risk management.

For the nine months ending September this year, Petron reported a consolidated net income of P11.8 billion, up 58% from P7.4 billion last year.

Local and Malaysian operations sales volumes hit 80.2 million barrels – slightly higher than the 79.3 million sold in the same period last year.

In 2016, Petron’s net income amounted to P10.8 billion, up from P6.3 billion in 2015.

span,” Crisol said.In 2016, total value of new

listings in PDEx reached P109.66 billion.

At the start of the year, the bond market operator projected to reach P150 billion in new debt listings despite the move of the US Federal Reserve to hike interest rates, which could eventually raise borrowing costs.

Crisol said the banner performance of the bond market is expected to spill over into 2018 with a new enrollment framework and the roll out of government’s Build Build Build program.

THE recent acquisition by Davao-based businessman Dennis Uy of H2O Ventures has spurred market speculations this could pave the way for the backdoor listing of the tycoon’s casino enterprise in Lapu-Lapu City.

Market pundits speculate that Uy may use H2O Ventures as the listing vehicle for his planned grand casino in Cebu.

If Uy decides to do a backdoor listing for his casino, he would be joining the usual route taken by other casinos in the Philippines such as Enrique Razon’s Solaire Resort in Parañaque through Bloomberry in 2012 and Melo Crown which acquired Manchester International Holdings Unlimited Corp. also in 2012.

Uy, through Udenna Development Corp., had earlier signed a memorandum of agreement to acquire the shares of listed holding company Jolliville Holdings Corp., its subsidiaries and related parties, in H20 Ventures for P327.7 million.

H2O is an investment holding company engaged in the operation, maintenance, and distribution of water supply system through its subsidiary, Calapan Waterworks Corp. (CWWC).

It shall implement and complete a spin-off by selling all of its existing business and assets, including shares and interests in CWWC and all other interests in other corporations.

Aside from Jolliville, the other sellers are KGT Ventures Inc., Melan Properties Corp., NGTO Resources Corp., OTY Development Corp., Nanette Ongcarranceja, Ortrud Yao, Kenrick Ting, Jolly Ting, and Lourdes Ting.

THE Securities and Exchange Commission (SEC) has approved the valuation of shares of stock to be issued by PAL Holdings Inc. for a share swap transaction linked to the acquisition of minority interest in subsidiary Philippine Airlines (PAL).

PAL Holdings said in a disclosure to the Philippine Stock Exchange (PSE) “the corporation’s request to the SEC for confi rmation of the valuation of the shares to be issued in connection with the acquisition of minority interest in its subsidiary, PAL has been granted in a certifi cate dated Dec.18.”

In the certifi cate, SEC said it approved the valuation of shares of stock amounting to P617.71 million to be applied as payment for additional issuance of 123.54 million shares with a par value of

Backdoor listing of Uy’s casino likely, brokers say

P1 with additional paid-in capital of P494.17 million.

The request for confi rmation of valuation of shares was made in connection with PAL Holdings’ share swap transaction with shareholders of PAL.

Under the share swap transaction, PAL Holdings agreed to issue one share for every fi ve PAL shares surrendered to it.

Following the confi rmation of the SEC, PAL Holdings will issue 123.54 million shares from its authorized but unissued capital stock in favor of PAL shareholders participating in the share swap transaction.

PAL president and chief operating offi cer, Jaime Bautista, had earlier said the share swap transaction is expected to provide minority shareholders of the airline a mechanism to benefi t from their shares.

THE power generation arm of San Miguel Corp. -- SMC Global

Power Holdings Corp. -- has listed on Dec. 22, Friday, P20-billion worth of fi xed-rate bonds at the Philippine Dealing and Exchange Corp. (PDEx).

The bonds consist of a fi ve-year series due 2022, seven-year series due 2024 and 10-year series due 2027, with interest to be paid quarterly.

SMC Global general manager, Elenita Go, said during the listing ceremony the bonds would help the company expand its power generating portfolio and refi nance debts to meet its goals of delivering electricity and spurring development across the country.

“This refl ects the continuing trust of the

SMC Global Power lists P20B fi xed-rate bonds

local market on the vision and prospect of SMC Global Power. The funding from this bond is one big step towards our quest to support nation building and contribute to our country’s economic progress,” she said, adding: “Our diversifi ed and well-balanced portfolio of baseload, mid-merit and peaking plants is set to deliver our promise of sustaining and help further in the development of the provinces and cities across the country.”

SMC Global has a total generating capacity of 4,153 megawatts (MW) in its portfolio.

“In addition to our existing power capacities, our greenfi eld power projects in Davao and Bataan are now partially in commercial operation which is expected to

be in full swing in the coming months,” Go said, referring to the 2x150-MW circulating fl uidized bed coal-fi red power plant in Malita, Davao del Sur and the fi rst two of its 4x150-MW coal-fi red power plant in Limay, Bataan.

The power fi rm also recently signed an agreement to fully acquire Masinloc Power Partners Co. Ltd., which owns, operates and maintains the Masinloc coal-fi red power plant comprising two units of 315 MW each, a 335-MW expansion project (Unit 3) which is under construction and a 10-MW Battery Energy Storage in Zambales province.

SMC Global’s latest listing is among the largest issuance in the bond exchange, PDEx chairman and CEO Cesar Crisol said, noting it is also the 29th

and last listing this year.

“We are also pleased to note the d i s t r i b u t i o n of this set of bonds which we u n d e r s t a n d is being dispersed to around 8,000 b o n d h o l d e r s , affi rming this as both a very “public-issuance as well as a warm reception by investors for the San Miguel brand,” he said.

To date, the SMC Group has listed nearly P100 billion in issuances, representing 12.6% of the P792.5-billion outstanding

listed bonds at

PDEx.

PAL Holdings shares valuation OKd by SEC

JANUARY 3-9, 2018 JANUARY 3-9, 2018

MARKETS/COMMODITIES MARKETS/COMMODITIES

MPIC borrows P10B to beef up capexMETRO Pacifi c Invest- ments Corp. (MPIC), the tollways and i n f r a s t r u c t u r e conglomerate headed by Manuel V. Pangilinan, has secured P10-billion worth of loans from two local banks for its projects.

In a disclosure to the Philippine Stock Exchange (PSE), MPIC said it entered into separate agreements to secure loan facilities in the aggregate amount of P10 billion.

“Proceeds of which will be used by MPIC to fi nance its investment in various projects and for other general corporate purposes,” it said.

The loan agreements are 10-year fi xed-rate term loans of P5 billion each from BDO Unibank and Union Bank of the Philippines.

According to MPIC chief fi nancial offi cer, David Nicol, the P10-billion loans form part of next year’s budget.

“It’s all part of funding our 2018 budget and mainly for tollroads and rail,” Nicol said.

MPIC is preparing to spend P100 billion by 2018, which is higher than the P94-billion programmed for 2017.

Over the next fi ve years, the conglomerate is looking to undertake P653-billion worth of projects to hitch a ride on the Duterte a d m i n i s t r a t i o n ’s Build Build B u i l d i n f r a -structure program.

MPIC wou ld f u n d

the capex through a combination of debt and equity.

Of the amount, projects for power would get the largest share at P380 billion, followed by toll roads at P125 billion and rail at P70 billion.

Apart from the committed projects, MPIC is also pursuing other prospective projects on biogas, logistics and toll roads worth another P167 billion.

If these prospective projects push through and are added to the group’s committed capital outlays, MPIC is looking at a capital spending of P820 billion for its various infrastructure-related ventures.

The conglomerate also joined a consortium of seven conglomerates, which plans to submit an unsolicited proposal to develop the Ninoy Aquino International Airport (NAIA).

Its partners in this consortium are Alliance Global Inc., JG Summit, Filinvest Land Inc., Aboitiz Equity Ventures and LT Group.

MPIC is preparing to spend P100 billion by 2018, which is higher than the P94-billion programmed for 2017.

Over the next fi ve years, the conglomerate is looking to undertake P653-billion worth of projects to hitch a ride on the Duterte a d m i n i s t r a t i o n ’s Build Build B u i l d i n f r a -structure program.

MPIC wou ld f u n d Manuel V. Pangilinan

Photo shows Globe Telecom president and CEO, Ernest Cu , trying GCash scan to pay for Emotors e-shuttle service with EMI CEO, Elizabeth Lee, holding the GCash QR sticker while Mynt president and CEO, Anthony Thomas (right), and W Group CEO, Francis Wee, (2nd from left) look on.

PDEx capped 2017 with P207.4B listings

PAL shares are currently not being traded, while shares of PAL Holdings could be sold through the local bourse.

The company had earlier also received SEC approval for its equity restructuring to eliminate the flag-carrier’s deficit.

With the SEC approval, PAL would be using its additional paid-in capital of P13.64 billion to fully wipe off its defi cit of P13.57 billion as of Dec. 31 last year.

PAL said the move to eliminate the defi cit accumulated from losses incurred in the past would allow the carrier to declare dividends and attract new investors, referring to an upcoming deal with a strategic partner.

The fl ag carrier expects to benefi t from the entry of a strategic investor in terms of the partner’s contribution in equity, management, route development, or possible membership in an alliance.

Dennis Uy

Udenna will also do a mandatory tender offer for the H2O shares pursuant to the Securities Regulation Code.

It is building the $341-million Emerald Resort and Casino, which will rise on a 12.5-hectare prime beachfront property on Mactan Island in Lapu-Lapu City.

Lapu-Lapu Leisure Mactan will have iconic modern buildings and infi nity pools. It will have a skydiving center on a pier, a retail complex, a convention center, luxury hotels and villas, specialty dining options, private residences, and condominium-hotels.

The development will give residents and hotel guest access to the longest stretch of beachfront in Mactan as well as views of the Hilutungan Channel and the Magellan Bay, making it a premier business and holiday destination year round.

Mactan has become a premier tourist destination, seeing a s u r g e of investments but keeping enough room for further development in the coming years.

–L.J. SUSI 12/29

P20B fi xed-rate bondsand last listing

“We are also pleased to note the d i s t r i b u t i o n of this set of bonds which we u n d e r s t a n d is being dispersed to around 8,000 b o n d h o l d e r s , affi rming this as both a very “public-issuance as well as a warm reception by investors for the San Miguel brand,” he

To date, the SMC Group has listed nearly P100 billion in issuances, representing 12.6% of the P792.5-billion outstanding

listed bonds at

PDEx.

GCASH is expanding its scan to pay feature in the transport industry through a partnership

with Emotors, Inc. -- the operator of Zum e-Series that provides e-shuttle service for tenants and employees of the W Group, Globe Telecom, and Mynt.

“This is just the beginning of our foray into the transport sector. Wherever cash is used, we want to offer a quick and hassle-free alternative,” said Ernest Cu, chief executive offi cer of Globe Telecom, which, together with Ant Financial and Ayala Corp., owns Mynt, the fi nancial technology company that operates GCash mobile wallet service.

Globe Telecom’s collaboration with Emotors is hinges on three factors: innovative technology, clean and sustainable electric transport, and the demand for services that avoid commuting pain points.

Emotors is a 100% Filipino-owned social enterprise committed to environmental sustainability through the Zum e-Series, an electric tricycle that can seat six passengers. Compared to traditional vehicles, the electric tricycle is quiet, economical, and emits a lower carbon footprint.

Through the service, commuters can enjoy cashless payments by

scanning the QR code provided by the pilots. GCash’s scan to pay feature is the only mode of payment available.

The Zum e-Series offers point-to-point transport from the WCC Building to Market! Market! and vice-versa.

To use the scan to pay feature, customers must simply download or update the GCash app on their smartphone, tap or point the phone’s camera at the QR code, and input the amount to be paid.

Customers can load their GCash wallet in any of the 12,000 GCash partner outlets nationwide, including Globe Stores, SM Business Centers, Robinsons Business Centers, Puregold branches, 7-Eleven Barcode Cash In, TouchPay kiosks, and many more.

GCash aims to make cashless payments the preferred choice of payment as it eliminates the hassle of bringing money and waiting for change. Merchants don’t need to pay for expensive

equipment and will only need a QR sticker linked to a GCash wallet.

To date, GCash has

partnered with top es-tablishments, like Ayala Malls, Robinsons Depart-ment Stores, SM Stores,

Megaworld Lifestyle Malls, Ministop, Mercato Centrale, among others. GCash will soon roll out

to the parking segment in a partnership with Megaworld’s Uptown Mall.

GCASH SCAN TO PAY ROLLS OUT IN TRANSPORT INDUSTRY