Nov 24 2010
Ayala (AC) has entered into a contract with Japan’s Mitsubishi for a solar power project. AC revealed to the Philippine Stock Exchange that Michigan Power, (MPI) its fully owned unit has agreed to work together with Diamond Generating Asia (DGA) for surveying the solar industry, for possible opportunities by forming a joint venture, PhilNewEnergy.
This new company would look into developing solar projects in Philippines. As per the agreement MPI would own 60%, while the other 40% would be DGA’s share. A total of P 112.5 million has been invested by AC into this new company with an aim to facilitate MPI to penetrate the renewable energy field. Chief Financial Officer of Integrated Micro Electronics (IMI), Sherisa Nuesa, revealed that the company was planning to develop solar energy technology in the United States.
AC has also disclosed that profits for the prior nine month period have shown a 17% increase, mainly due to its water utility, banking and property businesses. AC Chief Operating Officer and President, Fernando Zobel de Ayala, observed that the steady growth of their core businesses helped by various factors, such as low interest rates, strong domestic demands and positive economic environment, was highly encouraging. He mentioned that the steps taken in the preceding years have benefited the businesses. Earnings for the Bank of the Philippine Islands and increased by a quarter, while Ayala Land showed a 35% growth in the net income. However Globe Telecom’s income had fallen.
Most of the AC Companies such as Manila Water, IMI and automotive dealerships showed a significant growth in the income. Some companies such as Liveit also registered a profit as compared to last year’s loss. Due to impairment necessities for some real estate estates located in North America, AG Holdings declared a P1.8 billion loss.