A. Soriano Corp. (ANS) has declared a dividend of 0.50 a share. With ANS hovering at around 7.40 a piece, the dividend would easily yield 6.5%.
Almost half of ANS’s assets is invested in trading securities. For the nine-month period ending on September 30, 2020, ANS’s trading portfolio suffered a loss of 1.3 Billion Pesos on the decline of the trading portfolio’s value.
The cash dividend could be supported by the dividend received from its portfolio and from its operating investments. ANS counts its investments in Phelp Dodge Philippines, 11% interests in KSA Realty Corporation (The Enterprise Center), and 62% interests in Seven Seas Resorts and Leisure (Amanpulo Resort) as its operating investments.
ANS also owns 27% of AG&P International Holdings Limited. Headquartered in Singapore, AG&P is one of the world’s fastest-growing providers of LNG import and LNG and gas logistics, distribution, and infrastructure solutions. AG&P offers its customers pragmatic solutions to their infrastructure challenges that lower costs, make installation easy, accelerate construction schedules and increase certainty of outcome, allowing assets to become operational quickly. AG&P’s services include development, engineering, procurement and construction for onshore and offshore gas infrastructure, LNG logistics, LNG marketing and delivery of natural gas straight to industrial, commercial, vehicular and domestic customers.
In fact, San Miguel’s (SMC) SMC Global Power Holdings Corp. commissioned AG&P to construct a liquefied natural gas (LNG) terminal beside its Ilijan power plant in Batangas City. SMC Global Power Holdings Corporation said that the terminal would be developed by Atlantic Gulf and Pacific’s (AG&P) LNG Terminals and Logistics division and its Construction Solutions division would handle the engineering, procurement and construction work.
AG&P could benefit from the energy shift from coal to natural gas.
This analysis is an independent viewpoint on publicly traded stocks in the Philippine market. Accuretti Systems Inc. trades stocks in the Philippine market.
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