PLDT H1 earnings on track; more loans eyed to fund P32-B capex

MANILA, Philippines - Dominant carrier Philippine Long Distance Telephone Co. (PLDT) is looking at raising funds within the second half to bankroll its P32-billion capital expenditure program this year.

This developed at the company remains confident it would be able to deliver its promised core net income of P39.5 billion this year after an “on track” performance in the first half of the year.

PLDT president and chief executive officer Napoleon Nazareno said the group is now contemplating on raising funds in the second half to finance the company’s expansion program.

 “We might. We are still contemplating it. Proceeds will be used for the roll out, capex, expansion, and others,” Nazareno said.

Details of the fund raising activity including whether it would involve the issuance of bonds, loans, among others as well as the amount to be borrowed have yet to be finalized.

 “I am not sure yet but we are considering,” he replied when asked how much the company is borrowing in the second half.

PLDT has already raised P15 billion from the issuance of seven-year bonds due 2021 and 10-year bonds due 2024 listed at the Philippine Dealing and Exchange Corp. (PDEX) last February,

The PLDT Group decided to raise its budget for capital expenditures this year to P32 billion instead of the original planned P29 billion to put up base stations that could withstand strong winds after Super Typhoon Yolanda battered provinces in the Visayas last November.

Nazareno said this year’s budget for capital expenditures would also be used to attain a 100 percent 3G (Third Generation) coverage, build more long term evolution (LTE) sites, expand its fiber optic network to about 100,000 kilometers, a new international cable system, among others.

In 2013, PLDT spent P28.8 billion for capital expenditures last year or 21 percent lower compared to P36.4 billion in 2012.

Meanwhile, Nazareno said the PLDT Group is on its way to delivering the promised core net income target of P39.5 billion this year amid the “on track” performance in the first half of the year.

“It is on track, our bottomline will be on track with the guidance figures,” he stressed.