Market Talk (MWC, PF)

Utilities: MWC 2014 full year results broadly in line. Manila Water Company (MWC – HOLD) released 2014 full year results. This was broadly in line with expectation. The company posted 2014 full year net income of P5.81bn (+1% YoY) and EBITDA of P11.56bn (+1%). Total revenue grew by 3% YoY to P16.36bn and billed volume in the East Zone concession increased 4% to 449 mcm. Total bill billed volume, which includes operations outside the East Zone grew 12% to 671.2 mcm. With regard to the arbitration proceedings on the 2013-17 rate rebasing determination, we understand there will be a last meeting by the Arbitrational Panel in the last week of the month. The company guided that a decision by the Panel could be forthcoming at the end of the 1Q15.

Consumer: PF sets preferred share dividend rate at 5.66% pa. San Miguel Pure Foods Co Inc (PF – BUY) disclosed yesterday its Series 2 preferred share offering will have an initial dividend rate of 5.6569% pa, lower than the 8% dividend rate of its existing preferred shares. Unless the preferred shares have been redeemed by PF by the end of the fifth year, the initial dividend rate shall be adjusted to the step up rate of 3.75% pa plus the simple average of the closing rate of the seven-year PDST-R2 for three consecutive days ending on the fifth anniversary from the preferred shares’ listing date.

Banks: PDIC to bid out PHP253.9m worth of assets of closed banks. The Philippine Deposit Insurance Corp (PDIC), the country’s deposit insurer, will bid out PHP253.9m worth of assets of banks that have been closed by the central bank and put under receivership. PDIC will sell 115 properties which includes condominium units, parking slots, and other properties. These are located in Davao, Compostela Valley, General Santos City, and Camiguin. 

-maybank atr