P2.47-B DEFICIT. If you are among the public of more than 1,000 stockholders of Wellex Industries Inc., then don’t expect to receive dividends either in cash or in stock from the Gatchalian-controlled listed company. It has long been operating on deficit so much so that its stock has been trading below P1 par value at P0.183.
Wellex has authorized capital stock of 3.50 billion shares, or P3.50 billion computed at P1 par value. As of latest report, it had P3.276 billion outstanding capital and 10,000 treasury shares.
In a consolidated financial filing, Wellex group reported an increasing pile of deficit that as of June 30, 2014 amounted to P2.469 billion. Ironically, the Gatchalians continue to blame Asian financial crisis for its yearly losses when this occurred 17 years ago.
As the majority stockholders, the Gatchalians, who failed in their bid years ago to acquire the government-controlled Philippine National Construction Corp., should tell the public a more credible reason for Wellex group’s losses and ballooning deficit.
Uncertainty. Wellex disclosures posted on the website of the Philippine Stock Exchange should be read by the public. The numbers shown, for example in the company’s audited financial reports show discouraging signs such as net loss of P107.862 million as of Dec. 31, 2013; P436.69 million as of Dec. 31, 2012; P27.812 million as of Dec. 31, 2011; and P41.578 million as of Dec. 31, 2010.
Why the huge losses and the deficit? The Gatchalians don’t talk about them.
If, again, you are among the public, then you should lookout for signs that the Gatchalians would be selling. And when you find them unloading, it’s probably time for the majority stockholders to tell the public what they have in store for them.
Otherwise, the individual public investors would continue holding on to their Wellex shares not knowing when they could unload without depressing the stock’s price, which, anyway has long been deopressed.
Zero dividends. Here is another Gatchalian-controlled company that is listed and supposed to be public. Like Wellex Industries Inc., Waterfront Philippines Inc. has also been incurring huge losses over the years – P38.518 million as of Dec. 31, 2013; P2.115 million as of Dec. 31, 2012; and P15.773 million as of Dec. 31, 2011.
These losses resulted from revenues of P31.963 million in 2013; P39.487 million in 2012; and P24.509 million in 2011.
As of March 31, 2014, it had a deficit of P1.577 billion.
Waterfront used to be profitable enabling it to distribute P19.23 million dividends at P0.02 per share and 10 percent stock dividend to stockholders as of May 15, 1999 and Sept. 15, 1999, respectively.
In a PSE posting, it said it has not issued dividends since 2000 but promised “to declare dividends once the deficit is offset and the market for the coming year prosper.”
Unfortunately for the public, Waterfront has yet to report profits since 2000.
Well-paid execs. Despite its annual losses, Waterfront Philippines Inc. is able to pay its executives, namely, Alfred Portenschlager, general manager; Gaye Maureen B. Cenabre, corporate peers resources & development director; Precilla O. Toriano, corporate finance director; and Maria Socorro Cotelo, corporate planning director.
In a footnote to the company’s compensation filing, Waterfront said, “the president has no remuneration benefit.” It identified Kenneth Gatchalian as the unpaid top executive.
In a filing, Waterfront said it paid its four highest-paid executives received P8.68 million in 2013; P6.801 million in 2012; and P4.334 million in 2011.The members of its board receive P8,000 each per board meeting.