Economist and Hedge Fund Manager Shayne Heffernan of
www.livetradingnews.com takes a look at First Gen, Bangkok Airways, Fraser and
Neave’s, Indofood, Malaysia GDP
U.S. stocks have struggled to
hold onto gains in recent days as investors fret the economy could slip into
recession if no deal is reached to avoid the “fiscal cliff” – some $600 billion
in spending cuts and tax hikes due to begin taking effect in January.
The S&P500 index is down
about 2.0 percent for the week so far.
Profits at China’s State-owned
enterprises fell 8.3 percent year-on-year to 1.75 trillion yuan ($277.78
billion) in the first 10 months of 2012, the Ministry of Finance said Thursday.
Malaysia
Moody’s Analytics forecasts
Malaysia’s GDP to have grown at a slower pace of 4.9% in the third quarter
ended September from 5.4% a quarter earlier.
It said on Thursday exports had
declined due to softer global demand, but this was partly offset by domestic
demand, hence for 2012, Malaysia’s GDP was expected to expand 4.8% on-year.
“The economy is forecast to
expand 4.8% in 2013 driven by investment and improving regional demand,” it
said.
In its assessment of Malaysia, it
said the export-led economy slowed in the third quarter, weighed down by the
Eurozone’s fiscal austerity and lacklustre US recovery.
On a year-ago basis, nominal
exports contracted 2% in Q3, 2012 after a 4% gain in Q2.
Moody’s Analytics said robust
domestic demand had partly offset the external weakness.
It pointed out that in the first
half of 2012, the major catalysts were the government’s drive to improve and
develop infrastructure and a steady flow of foreign capital. This has also
supported the broader economy, including the labour market, with positive
effects on household spending.
Indonesia
Indofood Sukses Makmur, the
country’s largest food company, reported a profit increase of almost 10 percent
in the first nine months of this year as demand for its food products remained
strong.
The company said on Wednesday
that net income rose 9.7 percent to Rp 2.55 trillion ($265 million) from the
same nine month period a year earlier.
Revenue also increased 10.3
percent to Rp 37.26 trillion.
Indofood CBP Sukses Makmur — a
unit that produces instant noodles, food seasoning and snacks — remained the
company’s biggest revenue generator, contributing 43 percent with a 13 percent
increase in sales to Rp 16.23 trillion.
Net income at Indofood CBP rose
8.4 percent to Rp 1.66 trillion in the first nine months.
“Indofood CBP posted good earning
results where almost all divisions show healthy growth in the first nine
months,” said Anthoni Salim, president and chief executive of Indofood Sukses
Makmur.
Singapore
Heineken said Thursday it had
completed its acquisition of Fraser and Neave’s (F&N) share of Asia Pacific
Breweries (APB) as part of the takeover of brand Tiger Beer.
“As a result Heineken currently
owns in aggregate a 95.3% stake in APB and will consolidate APB into its
accounts in November 2012,” the brewer said in a statement.
The company said it would also
make an offer for the remaining shares in APB that it does not already own.
F&N shareholders in September
approved Heineken’s offer of Sg$5.6 billion (3.6 billion euros) for its 40
percent stake in APB, which has breweries in 14 markets including China.
Amsterdam-based Heineken is
seeking to boost sales in fast-growing Asian economies as demand falls in
mature markets like Europe, where a prolonged financial crisis is dampening
consumer spending.
Thailand
Bangkok Airways (PG) is planning
to list on the Stock Exchange of Thailand in early 2013, to enable it to
acquire aircraft and build a new hangar at Suvarnabhumi, president Puttipong
Prasarttong-Osoth told ATW. He gave few details but acknowledged the Initial
Public Offering (IPO) will likely to be within the next 12 months. “We plan for
early next year, 2013,” he said.
The size of the listing is also
likely to be limited as Thai law prohibits foreigners from owning more than
half of a Thai airline.
“(We will) probably put 40%-45%
in the market,” Prasarttong-Osoth said.
The privately owned carrier will
most likely be listing as an airline only. It owns and operates three
airports—Koh Samui, Sukhothai and Trat—which are not likely to be part of the
flotation. “I think it will be the airline,” Prasarttong-Osoth said.
The family-owned and run carrier
has been limited in its ability to grow its equity base. It believes a
successful float will allow it to raise more funds for future expansion, he added.
Philippines
First Gen Corp. reported a surge
in its net income to $147 million in the first nine months of 2012 from only
$10.1 million a year ago.
In a filing with the Philippine
Stock Exchange, First Gen attributed the profit growth to the higher earnings
contributed by affiliates Energy Development Corp., currently the country’s
largest geothermal producer, and FG Hydro Power Corp. (FG Hydro), which owns
the 132-megawatt Pantabangan-Masiway power plants.
Subsidiaries First Gas Power
Corp. and FGP Corp., operators of the 1,000-MW Santa Rita and the 500-MW San
Lorenzo natural gas-fired power plants, respectively, were also major
contributors to First Gen’s profit growth.
The rise in incomes was, however,
partly offset by the increased administrative expenses of First Gen due to the
additional costs related to the acquisition of the non-controlling 40-percent
interest of the BG Group in the two natural gas plants in Batangas.
First Gen reported that its total
revenue in the first nine months of 2012 rose by 15.2 percent to $1.179 billion
from $1.023 billion a year ago.
The bulk of the revenue or $1.07
billion came from electricity sales.
In a separate filing with the
PSE, geothermal producer EDC said it had posted a net income of P8.6 billion in
the first nine months of 2012, a turnaround from the P488-million net loss it
incurred a year ago.
EDC reported that net income
attributable to equity holders rose P7.1 billion in the same period, from a net
loss of P670.2 million last year.
Total revenue for the nine months
ending September 2012 rose by 20.5 percent to P21.95 billion from P18.22
billion in the first nine months of 2011.
According to EDC, the company’s
improved financial performance in the first three quarters of the year can be
attributed mainly to higher electricity revenues of its subsidiaries. Also,
last year’s level was lower because of the P5-billion impairment loss on the property
plant and equipment of the 49-megawatt Northern Negros Geothermal power
facility, which was recognized in June 2011.
NNGP was shut down last year due
mainly to a mismatch in the geothermal resources in the area and the facility’s
generation capacity. The equipment will be moved to another area on the island
that can support a higher generation capacity, while a smaller facility may be
put in place of the NNGP.
Revenue from the sale of
electricity rose by 21 percent to P21.4 billion in the first three quarters of
2012 from P17.7 billion in the same period a year ago due to the better
performance of Green Core Geothermal Inc., which manages the 305-MW
Palinpinon-Tongonan power plants and FG Hydro.
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