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PLDT says may cut 2003 capex to 5.0-5.5 bln pesos
Reuters, 11.30.02, 12:52 AM ET
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MANILA, Nov 30 (Reuters) - Philippine Long Distance
Telephone Co (PLDT), the country's top telecom firm, said on
Saturday that it may cut its 2003 capital spending to around
5.0-5.5 billion pesos ($93.4 million) from this year's
estimated 7.0 billion.
Spokesman Butch Jimenez told Reuters PLDT was still drawing
up its 2003 budget plan, but confirmed spending would be scaled
back next year with much of its network expansion complete.
"We have pretty much spent the capex we really need to roll
out the infrastructure programme. Above that we are focusing on
our debt reduction and a big part of that is putting a cap on
capex," he said.
Asked if capital spending could be between 5.0 to 5.5
billion pesos next year, he said, "Yes".
An official of PLDT's key cellular business Smart
Communications Inc, said separately that the company was likely
to spend less capex in 2003 than this year's target of nine
billion pesos, although he could not give an exact figure.
PLDT recently wrapped up refinancing of $1.3 billion in
debt that falls due between 2002 and 2004, trimming its
obligations in the period by $82 million.
It has also pledged to cut its long-term liabilities
further through a mix of cash flows and other internal sources.
At the end of September the company had long term debt of
$150.25 billion pesos, with a large percentage denominated in
dollars.
The company which is the dominant fixed line and cellular
player in the Philippines has had a rocky year with an
ownership row in the third quarter between controlling
shareholder First Pacific Co Ltd <0142.HK> and the PLDT
management, pushing the stock price down to 11-year lows.
Hong Kong-based conglomerate First Pacific had sought to
sell its 24.4 percent stake in the telco to Manila businessman
John Gokongwei, but key management staff sought to block the
deal, arguing it was not in the best interests of all
shareholders.
Since the end of September when Gokongwei walked away from
the deal, the shares have made a tentative recovery, aided by a
strong nine months earnings performance and successful debt
refinancing arrangements.
On Friday the stock closed up 7.5 pesos, or 2.65 percent,
at 290 pesos, after slumping to an 11-year low of 214 pesos on
October 22.
($1=53.5 pesos)
Copyright 2002, Reuters News Service
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