Biz Buzz: ‘The Boss’ is back
He was absent during last year’s annual stockholders meeting but at Tuesday’s meeting of conglomerate San Miguel Corp., the 81-year-old business magnate Eduardo “Danding” Cojuangco Jr.,—referred to internally as “The Boss”— was there to preside over the meeting.
Just before the presidential elections, he flew to the US for medical treatment.
Cojuangco’s appearance, of course, delighted shareholders, especially as he himself addressed queries, such as on why the group had decided to sell the telecom assets to the existing duopoly, citing the many obstacles along the way.
He vowed to channel proceeds from the transaction—which however still has to pass the scrutiny of the newly-minted Philippine Competition Commission—to boost the group’s other businesses, particularly power and infrastructure.
Alluding to recurring rumors about Cojuangco’s health, SMC president Ramon S. Ang said: “Super healthy na chairman natin, mukha siyang 55 years old (Our chair is now super-healthy he looks 55),” then amending his words to say he looked 50. Doris Dumlao-Abadilla
Petron’s windfall
WHEN global oil prices were trading at $30 per barrel in February, SMC president Ramon S. Ang had said oil refining and distribution arm Petron Corp. would likely end this year with P18 billion in net profit this year.
This is because Petron’s Bataan refinery has now become very efficient in its extraction, with output reaching 180,000 barrels a day or hitting the maximum liquid yield.
Since then, oil prices have rebounded to about $50 per barrel, which only spells good luck for Petron.
As such, Ang said Petron could unlock even higher profits this year, adding that a P22-billion bottom line might now be possible if oil prices would stabilize at current levels. Doris Dumlao-Abadilla
Next BSP governor
AS THE nation counts down to the inauguration of incoming President Rodrigo Duterte, the business community is also waiting with bated breath for his appointments to various departments and agencies which are key to the Philippines continuing its growth momentum.
But perhaps the one appointment the business community is eagerly awaiting is one that is not needed until next year—July 2017, to be exact.
That is when Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. steps down as the country’s chief monetary regulator.
Unlike in 2011 when President Aquino appointed him to a second term, there will be no third term for Tetangco (even if Duterte had indicated during the campaign period that he was willing to retain him at the helm of the BSP). That’s because the central bank law specifies that a Monetary Board member can only be reappointed once. And Tetangco—as the chair of the Monetary Board—has already been reappointed by the present dispensation.
And when it comes to maintaining investor confidence in the country, foreign investors are united in saying that the key to keeping them in the country (and attracting new ones) is having reputable names as finance chief and BSP Governor.
With the appointment of incoming Finance Secretary Carlos Dominguez providing reassurance to investors, the eyes of the financial community are now trained on the race for the central bank governorship.
This early, there’s already one name that is being whispered about among bankers. Word on the street is that an early contender to be the country’s next BSP governor is EastWest Bank president Antonio Moncupa.
Before one dismisses that rumor, note that Moncupa was a former student activist who was actually imprisoned during the Martial Law years. So he fits the bill, as far as the Left-friendly Duterte administration is concerned.
But we’re told that Moncupa has an even bigger ace up his sleeve. He’s good friends with incoming Senate President Aquilino Pimentel III and, in fact, flew to Davao City soon after last month’s elections to offer his congratulations to Duterte.
At this point, we’d say Moncupa has the inside track for one the most important economic appointment the next administration will make.
But the final decision isn’t due until next year, so expect lobbying to heat up in the coming months. Daxim L. Lucas
PPO goes to Carnegie
TWO lucky Filipino-Americans won seats to the private dinner that philanthropist Loida Lewis is hosting at her elegant Fifth Ave. apartment for Olivier Ochanine, the French conductor of the Philippine Philharmonic Orchestra, celebrated classical pianist Cecile Licad and concert donors.
They won at an auction held during the Philippine Independence Day lunch at the high end Cipriani’s restaurant on 42nd street in Manhattan.
The guests are coming over to New York as part of the first performance of the PPO at the famed Carnegie Hall on June 18. The PPO will perform along with Licad and violinist Diomedes Saraza Jr., a graduate of the world-renowned Juilliard School.
Proceeds from the landmark event will go to the housing program of the Philippine Disaster Resilience Foundation for Yolanda victims.
Among the sponsors bankrolling the concert are Manuel V. Pangilinan, Philippine Airlines, Rustan’s, PLDT Smart Foundation, One Meralco Foundation, Federal Land, Ayala Land and Smart Infinity. Tina Arceo-Dumlao
Port operator speaks
THE PROBLEM of ports congestion that the Bureau of Customs was trying to solve by allowing Manila North Harbour Port Inc. to accept international cargo is not an issue of capacity but of throughput.
Thus said Asian Terminals Inc. president Eusebio Tanco Tuesday as he debunked the Bureau of Customs’ rationale for effectively expanding the number of port operators from the two incumbents (the International Container Terminals Inc. and ATI) to include a third (MNHPI).
“While I cannot say for certain what the rationale of the BOC was, what I can say as one of the existing terminal operating entities, and as an individual with almost thirty years experience operating terminals, is that such an extension offers no assistance or solution to port congestion issues,” Tanco said.
He explained that the port congestion experienced in 2014 and early 2015 “had nothing whatsoever” to do with the number of terminals operating or the capacity provided by each terminal.
“There is ample existing capacity and a great deal of capital has been invested and will be invested to continue handling growth,” Tanco said.
Instead, he pointed out that past port congestion issues were actually caused by a road congestion issue following the extended truck ban policy, “period.”
“If one effectively closes the gates to terminals by banning trucks from picking up boxes, it makes no difference whether there are two terminals, three terminals or 10 terminals: they will all fill up simultaneously because the flow inland has been disrupted,” Tanco said. “This has nothing to do with port capacity; everything to do with road capacity.”
In response to the port congestion problem that virtually crippled the local economy for a time, authorities and private sector players have encouraged cargo volume to decentralize from Manila to Batangas and Subic. And from all indications, the plan is working well, Tanco said, since both ports handling record volumes and now offering a global scope of connections, based on “concerted marketing efforts” from the terminal operators to freight owners and shipping lines.
And naturally, the ATI boss does not think that the entry of a potential competitor like MNHPI is a good idea.
“A third Manila gateway would reverse this beneficial trend, thus adding to congestion problems rather than alleviating them,” he said. “We do not believe this is in the public interest at all.”
So how will this dispute be resolved? We suspect that the incoming Duterte administration will eventually have the final say. Let’s wait and see. Daxim L. Lucas
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