Thursday, March 08, 2007 Piltel net income pegged at P10.1B
Pilipino Telephone Corporation (Piltel) on Wednesday announced its financial results for 2006, recording a net income of P10.1 billion compared with a net profit of P13.5 billion in 2005, due to lower exceptional items.
Core earnings, as adjusted for additional financing charges booked on prepaid debts and the effects of foreign exchange revaluation and certain deferred tax assets (DTAs), stood at P=6.8 billion in 2006, up 8% from the P=6.3 billion recorded for 2005.
On December 4, 2006, Piltel made the final prepayment of US$232.6 million, representing the balance of Piltel's total outstanding restructured debt after the initial amount of US$176.4 million was prepaid on June 5, 2006.
Debt balances as at December 31, 2006, stood at US$1.8 million, rendering Piltel debt-free. At its height, the Company's total debts totaled approximately US$800 million.
The Company's stockholders equity stood at a positive P14.6 billion as at yearend 2006. Capital deficit declined to P=22.2 billion.
At the meeting of its Board of Directors held early Wednesday, the Board authorized and approved the proposed quasi-reorganization/capital restructuring to eliminate the Company's existing capital deficit.
This will be done by applying the P22.2 billion from the Company's additional paid-in capital against the retained earnings deficit of P22.2 billion as of December 31, 2006.
The quasi-reorganization/equity restructuring is subject to approval by the Securities and Exchange Commission.
The completion of the quasi-reorganization/equity restructuring will put the Company in a position to pay dividends to its shareholders. Dividends will be paid once the Company has built up its retained earnings position to the appropriate levels. (Press release)
