Home Blog Page 10077

Peso rebounds as Dec. inflation recedes

THE peso rebounded against the dollar on Friday following the release of weaker-than-expected December inflation data.
The peso ended the week at P52.51 against the dollar, against its P52.65 finish on Thursday.
The peso was stronger the entire day, opening the session at P52.62 per dollar. It went to as low as P52.63 before closing the trading to its best showing for the day.
Volume thinned to $684.95 million from $797.5 million the previous day.
Foreign exchange traders attributed the strengthening of the peso to the December inflation data.
Prices of basic goods and services continued to ease for a second month in December at 5.1% as growth in food and transportation prices slowed.
December inflation was lower than the 6% recorded in the previous month, and was below the 5.7% consensus estimate in a BusinessWorld poll as well as the 5.2-6% forecast band of the Bangko Sentral ng Pilipinas.
“The peso appreciated today following the release of softer-than-expected Philippine inflation data,” a trader said in an e-mail.
Meanwhile, another trader said the peso was kept at around the P52.50 level by offers from the offshore market.
“We also saw some flows for the Philippine index, so we saw the equity index trading higher,” she added.
The Philippine Stock Exchange Index closed the session at 7,761.11, up 80.51 points, on turnover of P8.39 billion. — Karl Angelo N. Vidal

November MISSI

By Mark T. Amoguis, Researcher
Manufacturing output eased further in November, the government reported this morning.
Preliminary results of the Philippine Statistics Authority’s (PSA) latest Monthly Integrated Survey of Selected Industries, showed factory output — as measured by volume of production index — increased by 1.0% year on year in November, slower than October’s revised 3.6% but a reversal from last year’s 10.1% decline.
So far, this was the slowest reading for 2018.
The PSA attributed November’s increase to double-digit gains in textiles (45.8%), miscellaneous manufactures (25.6%), petroleum products (22.0%), tobacco products (21.1%), paper and paper products (15.0%), beverages (11.7%), and electrical machinery (11.0%).
Factory output volume averaged 10.1% in the 11 months to November, higher than the 0.8% recorded in last year’s comparative period.
In comparison, the Nikkei Philippines Manufacturing Purchasing Managers’ Index (PMI) improved that month to 54.2 from October’s 54 but lower than last year’s 54.8, signaling “notable improvement” in the manufacturing sector’s health.
A PMI reading above 50 signals improvement in business conditions from the preceding month, while a score below that point indicates deterioration.
Average capacity utilization — the extent by which industry resources are used in the production of goods — was estimated at 84.3%. Eleven of the 20 sectors registered capacity utilization rates of at least 80%.

December inflation slowest in seven months

By Carmina Angelica V. Olano, Researcher
Inflation eased for the second straight month in December by the slowest pace since May’s 4.6%, helped by slower increases in food and transport prices, the Philippine Statistics Authority (PSA) reported.
Headline inflation dropped to 5.1% last month from 6% in November, the PSA said this morning. This, however, is still faster than the 2.9% posted in December 2017.
Inflation had picked up for nine straight months to a nine-year-high 6.7% in September that was sustained in October before dropping to six percent in November.
The latest inflation pace is lower than the 5.7% median in a BusinessWorld poll late last week and falls below the 5.2-6% estimate given by the Bangko Sentral ng Pilipinas (BSP) for last month.
Full-year inflation came in at 5.2% against the central bank’s 2-4% target range for 2018 and was the fastest since 2008’s 8.2%.
Stripping out volatile prices of energy and food, core inflation clocked 4.7% in December, slower than November’s 5.1%, fueling a 4.2% average for 2018.
In a press briefing this morning, National Statistician Lisa Grace S. Bersales noted “slowdowns” in the year-on-year increases of food and non-alcoholic drinks, which eased to 6.7% in December from 8% in November; and transport to four percent from 8.9%.
In particular, food inflation declined except for other cereals, flour, cereal preparation, bread, pasta and other bakery products, which accelerated 4.1% in December from 3.9% a month ago. Rice prices eased to six percent overall in December, slower than the 8.1% pace posted in the preceding month. Increments of fish prices also moderated to 9.9% from 12.5%, meat to 5.5% from 6.3%, and vegetables to 8.1% from 11.5%.
Meanwhile, transport costs also slowed at four percent from November’s 8.9% pace.
PSA noted that the overall increase in prices of widely used goods slowed in all regions of the country. In Metro Manila, inflation eased to 4.8% in December from 5.6% a month ago, while overall price hikes similarly dropped to 5.3% from 6.2% in areas outside the National Capital Region.
For the full year, inflation in Metro Manila outpaced the national average at 5.5%, while it was slower in areas outside the capital at 5.1%.

BIR checking drink firms’ tax compliance

By Elijah Joseph C. Tubayan
Reporter
THE GOVERNMENT is now checking beverage makers’ compliance with tax laws, the Department of Finance (DoF) said in a press statement on Thursday, citing a shortfall in excise tax collections in the 10 months to October last year.
“The Department of Finance has directed the Bureau of Internal Revenue (BIR) to determine whether beverage manufacturers are paying the correct amount and type of tax, as mandated under the Tax Reform for Acceleration and Inclusion law (TRAIN), after uncovering possible discrepancies in their tax payments which left a P10-billion shortfall in the excise tax collection target for the first 10 months of the year,” DoF’s press release read.
The statement quoted Finance Undersecretary Karl Kendrick T. Chua as saying that the BIR collected P29.92 billion in excise tax from sugar-sweetened drinks as of October against a P40-billion target for those 10 months.
Some beverage firms, he said, may be paying the lower P6 per liter rate that is meant for those using caloric or non-caloric sweeteners, instead of the P12 per liter for those using high-fructose corn syrup (HFCS).
Sought for comment, the Beverage Industry Association of the Philippines (BIAP) insisted that its “members have declared truthfully and accurately the tax payments made for sweetened beverages,” adding that they “will continue to work with DoF and BIR on this.”
Milk, three-in-one coffee and medically prescribed beverages are exempted from this tax.
“My hunch is that those that are supposed to pay the P12 tax are only paying P6,” Mr. Chua said in the statement.
He said that only one company, Coca-Cola Co., has secured approval from the Food and Drug Administration (FDA) to convert its sweetener from HFCS to sugar or other caloric or non-caloric sweeteners, which is charged the P6-per-liter tax. The DoF explained that the FDA should first approve beverage manufacturers’ shift in the sweetener content before they pay the lower rate. “The FDA approved only the conversion for Coke, and that was just last August. So I think many are paying P6 when they should be paying P12,” said Mr. Chua. “That is our concern. I suggest the BIR conduct an audit. They cannot just change the content, per the FDA.”
BIAP said its members have followed the law on the sugar-sweetened beverage excise tax.
“The members of the Beverage Industry Association of the Philippines operate with the highest standards of ethics and integrity. We act responsibly and comply with all laws related to how we operate and conduct our businesses in the Philippines,” BIAP said in a statement e-mailed to journalists.
“Since the TRAIN law was enacted on January 1, 2018 BIAP members have declared truthfully and accurately the tax payments made for sweetened beverages. We have consistently followed the Implementing Rules and Regulations released by the Bureau of Internal Revenue last August 2018. All necessary documents needed to ensure the accurate declaration of the ingredients being used in our beverages, as well as the tax payments being made, have been submitted and/or approved by the Food and Drugs Administration and by BIR, respectively,” it added.
“As partners of the government, BIAP members are committed to ensuring robust tax governance across individual companies, as well as transparency and compliance with all applicable laws and regulations. We will continue to work with DoF and BIR on this.”
The group consists of 13 beverage manufacturers including Pepsi-Cola Products Philippines, Inc.; Asia Brewery Inc. and Del Monte Philippines, Inc.
The sugar-sweetened beverage tax under Republic Act No. 10963, or TRAIN, is a new levy that serves as a health measure.
TRAIN imposed higher tax rates on drinks with HFCS also to favor local sugar cane farmers.
The DoF is under pressure to prove TRAIN’s effectiveness in raking in additional taxes, as programmed, with the House of Representatives Committee on the Comprehensive Tax Reform Program scheduled to review the law’s implementation when Congress resumes session on Jan. 14.
DoF said TRAIN yielded P33.7 billion in revenues in 2018’s first half against a P30.1-billion target for that period, 53.23% of a P63.3-billion full-year 2018 goal.

Gov’t moving to allow work to resume at gas field in disputed waters

THE DEPARTMENT of ENERGY (DoE) is recommending to the Department of Foreign Affairs (DFA) the end of the suspension of exploration in a disputed South China Sea area covered by Service Contract (72), after PXP Energy Corp. — the company with the biggest stake in the project — submitted its request to pursue its work program, Energy officials said on Thursday.
Asked by reporters if the DoE has acted on PXP’s request, Ismael U. Ocampo, assistant director of the DoE’s Energy Resource Development Bureau, told reporters “Alam ko na i-forward na,” explaining that “kailangan dadaan… sa DFA” (As far as I know the DoE has forwarded PXP’s request to the DFA).
Asked separately what prompted the DoE to endorse to the DFA the lifting of the suspension on gas exploration in the disputed waters, Undersecretary Felix William B. Fuentebella said: “We have to explore some more.”
SC 72 is covered by the decision handed down by the Permanent Court of Arbitration in The Hague, the Netherlands on July 12, 2016. Reed Bank or Recto Bank, where SC 72 is located, lies within the Philippines’ exclusive economic zone as defined under United Nations Convention on the Law of the Sea. The arbitration court struck down Beijing’s vague historical basis for preventing the Philippines from exploring for and exploiting resources in that area of the South China Sea.
On March 2, 2015, the government placed SC 72 under force majeure because the contract area lies within the disputed area, which was the subject of arbitration. Under that status, exploration work at SC 72 is suspended from Dec. 15, 2014 until the government lifts such suspension.
On Dec. 21, 2018, Forum (GSEC 101) Ltd., or Forum GSEC, sent a letter of request to the DoE for the government to end suspension of work in the area.
Forum Energy Ltd., in which PXP Energy holds a 78.98% direct and indirect interest, has a 70% interest in SC 72 located northwest of Palawan, through its wholly owned subsidiary Forum GSEC.
PXP Energy has a total economic interest of 53.1% in SC 72.
Mr. Fuentebella said that the DoE’s “explore, explore, explore” campaign is necessary since the country lags behind its neighbors in terms of number of exploration projects.
“… [S]a Philippines, we have only five (exploration projects),” he said.
“We are number one in energy sustainability, but in the other factors — in access [to energy] and affordability — hindi mataas ang ranking natin (our ranking is not high).”
In terms of energy security, which he said factors in use of indigenous energy sources and reliance on imported fuel, the country has not been faring well either.
Mr. Fuentebella said these are among the reasons why the country needs to pursue more exploration projects. — Victor V. Saulon

Kidlat Tahimik: the technocrat and his duende

By Menchu Aquino Sarmiento

At age 76, Kidlat Tahimik (aka Eric De Guia) is among the younger National Artists, and happens to be the only one alive for Cinema. Further, among this tiny elect group, he is the only Wharton MBA holder, with a c.v. which includes a stint as a researcher for the Organization for Economic Cooperation and Development (OECD). This was before he symbolically tore up his Wharton diploma (he didn’t totally trash it though), and followed his bliss as an artist. Or as he has stated elsewhere, he let his duende come through. This duende is not the squeaky voiced gnome of lower Philippine mythology, but the inner demon or the spirit of genius which inspires and animates true artistry. See the Spanish writer Federico Garcia Lorca’s “Theory and Play of the Duende.” As Kidlat Tahimik declared in his film Mababangong Bangungot (Perfumed Nightmare) which is essentially his artist’s manifesto: “When the typhoon blows off the cocoon, the butterfly embraces the sun.”
During De Guia’s transition to Kidlat Tahimik (K.T.) some 40 years ago, he grew his hair long, the better to style this into an Igorot bowl cut. He has since grown this out into silvery shaman tresses. During formal occasions, he dons the Ifugao bahag (loin cloth), effectively mooning other dignitaries. Since he is not an I.P. (indigenous person), he has been accused of cultural misappropriation and, even, of slumming it. Patrick Campos of the UP Film Institute believes though, that since De Guia has lived among the Ifugao for significant lengths of time in the last three decades, he has organically connected his work to his life. He also started the Sunflower Film Collective in his adopted Ifugao community. During the scant hours when there is electricity, they edit films on a Macbook.
As K.T. the protagonist jeepney driver in his seminal film, Mababangong Bangungot, who dreams of crossing the bridge out of his pretend hometown Balian, Laguna, declares: “I choose my vehicle; I choose my bridge.” Crossing the bridge is a metaphor for the way to a better world. In the film, an American businessman becomes K.T.’s way out: as an OFW, he drives around Paris in his Sarao jeepney, refilling the American’s Chiclet vending machines.
With his unique coiffure and vehicle, the cinematic K.T. wonders: “Why is everybody staring at me? I feel I am becoming smaller. I am Kidlat Tahimik. I am not as small as you think. Nothing can stop me from crossing my bridge.” For sure, because by Philippine standards, De Guia is one of the big people, and alien to the social class who rides the jeep. His mother Virginia “Gene” Oteyza De Guia was the only female mayor of Baguio City. Before she died, the De Guia family donated 95-hectares in Sto. Tomas, Apugan-Loakan to the Baguio LGU for its environmental management programs.
Mababangong Bangungot won multiple awards in the Berlin Film Fest, around the time that Lino Brocka was making waves in Europe. A Brocka champion in France has refused to recognize De Guia’s film as “Filipino.” Its tongue-in-cheek whimsicality, and light-hearted political commentary about the yawning gap between the secular First World with its “floors that walk for you” (the airport walkalator) and “doors which open for you,” and the charmingly backward and traditional Third World full of talking religious images, lively flagellants, unsanitary circumcision rites, ridiculous beauty pageants, and laughably ignorant science, are seen from the amused perspective of the educated, Westernized observer. The pioneering Philippine cinema archivist Agustin “Hammy” Sotto saw elements of exoticization, e.g., villagers cradling an unlikely menagerie of farm animals on their laps as they crowd onto K.T.’s jeep; a young woman and K.T. simultaneously and openly urinating on the ground, on either side of his jeep.
Nonetheless within the tacit superiority of De Guia’s point of view, there is a sweetness and sincere concern for these Third World curiosities. When he reflects that one less vendor in the traditional market, means one more parking space, one senses the conflict within the Wharton MBA who gave up the dogma of neoliberalism for the whispered lessons “on the quiet strength of bamboo,” which the Yoda-like craftsman Kaya promised he would one day understand. K.T. realizes that Kaya’s art is doomed to extinction, because “one cannot build rocket ships from bamboo,” and despite himself, building rocket ships is what K.T. wants to do. In Mababangong Bangungot, he is the president of the Wehrner Von Braun Fan Club. Towards the end, he resigns, declaring independence from those “who would build bridges to the stars.”
However, in the 1982 follow-up Sinong Lumikha ng Yoyo? Sinong Lumikha ng Moon Buggy? (Who Invented the Yoyo? Who Invented the Moon Buggy?), K.T. shoots for the moon. He is the president of the Yodelberg Yoyo Society which aims to send a chicken to the moon for starters. That done, it would be on to bigger things: for K.T. to reach the dark side of the moon and there, play with his yoyo. Acknowledging the absurd grandiosity of this mission, its acronym is POMP, for Philippine Official Moon Project. Overall though, the film is a reflection on the creative process.
De Guia has defined independent film-making as making films that only the filmmaker could make. Not surprisingly, his films are also unabashed home movies, often featuring his wife and children. His eldest son Kidlat Gottlieb Kalayaan, then four years old, is his sidekick in Sinong Lumikha ng Yoyo? Sinong Lumikha ng Moon Buggy?, which also has actual home movies of De Guia’s parents. For his 10th birthday, his mother gave him silver ballet slippers and sparkly balletomane pantaloons. Her brother was the painter Victor Oteyza, and in 1939, she had appeared in the movie Nagkaisang Landas under the screen name Lydia Leynes. De Guia’s father, Victor, an engineer, gave him a slide rule and a boxed model of a tower as his birthday gifts. He was also expected to become an engineer. When young Eric did not follow the tower model’s assembly instructions, his father called him a dilettante, and urged him to always strive for exactitude.
De Guia does not have a prepared script when making his films. National Commission for Culture and the Arts Cinema Committee Chair Teddy Co describes his style as more of a reflective essay, rather than a conventional, plot-driven narrative. De Guia has called it “straying on track.” Sinong Lumikha ng Yoyo? Sinong Lumikha ng Moon Buggy? also has archival footage of the 1956 Philippine Soap Box Derby where 13-year-old Eric had entered “Pine Cone Fury.” The body of his car bristled with pine cones. His engineer father told him a race car had to be aerodynamically smooth to overcome wind resistance. Young Eric lost the race but got a special trophy for the most original design. His father was not impressed and simply said that “friction was stronger than beauty.” From such incidents of family drama, art and artists are made.

How do regions fare in terms of jobs?

How do regions fare in terms of jobs?

Five destinations that show there is more to Taiwan

WITH Taiwan waiving visa requirements for Filipinos, it shouldn’t come as a surprise that it ranked as the third top destination for travelers from the Philippines using the Agoda online booking platform.
For most people traveling to Taiwan, a trip to Taipei — the political, economic, and cultural center is a must. But the island offers so much more — its diversity provides numerous attractions for nature lovers, cultural adventurers, foodies, and architecture buffs.
Agoda’s booking numbers also reveal that other places in Taiwan are fast catching up to Taipei’s popularity. Taichung, Kaohsiung, Tainan, and Nantou are steadily welcoming more visitors to take up the runner-up spots on the list of top five Taiwan destinations for Filipino travelers as they showcase the different sights, sounds, and tastes the country has to offer.

• Taichung: Host of the World Flora Expo

The Taichung World Flora Exposition is so big, it is actually three destinations in one. The expo, held from early November 2018 through April 24 this year, spreads across three areas, each featuring a different aspect of Taiwan’s appeal. The Waipu site highlights Taiwan’s role as an agricultural kingdom famed for its flowers, fruits, and other produce. The Houli site celebrates the relationship between people and nature, featuring Taichung’s century-old equestrian facilities and Taiwan’s national treasures on loan from the National Palace Museum. Meanwhile the Fengyuan site, set up along the banks of the Ruanpizai Creek, demonstrates the importance of waterfronts to urban living with Taiwan’s longest riverbank floral corridor.

• Kaohsiung: An architectural feast

If architecture is your thing, head to Kaohsiung. City spaces in Kaohsiung are generally bigger, airier, and adorned with architectural gems. The Kaohsiung Main Public Library and the recently opened National Kaohsiung Center for the Arts are two such notable establishments, with the former featuring the world’s largest suspended atrium, and the latter boasting the largest art venue in the world, as well as housing a 9,194-pipe organ — the largest in Asia.

• Tainan: Foodies’ paradise

The city of Tainan is known as Taiwan’s laidback-living and food capital. Visitors keep coming back for its street food and chic hotels. The list of what you can eat here can easily go over a hundred. But must tries are: fish noodles, shrimp rolls, rice tube pudding, and shaved ice.

• Sun Moon Lake: Home to one of the world’s most endangered languages

For centuries, songs and poems were written about the beauty of Sun Moon Lake in Nantou, Taiwan’s largest body of water. A cycle path circles the lake and offers quite picturesque way to get around it.
Sun Moon Lake is also the home of the Thao tribe, Taiwan’s smallest aboriginal group. Their native language (Thao) is one of the most endangered in the world with fewer than half a dozen living speakers only a few years ago.

• Taitung: Stronghold of Taiwan’s aboriginal cultures

Indigenous tourism in Taiwan is different from aboriginal culture in many other countries — you don’t generally need a permit to travel to these areas. A visit to Taitung lets you experience how these cultures live.
Located on the Pacific-facing side of the island, Taitung is home to several aboriginal tribes, many of which have kept their traditions and their relationship to nature. Such cultural closeness to nature is exemplified in the polyphonic vocal music of the Bunun tribe’s harvest prayer called “Pasibutbut.” Sung by a group of Bunun men standing in a circle with no scores and no conductors, they reach harmony using mutual understanding gained through practice and personal bonds.
It just so happens that Taitung holds a hot air balloon festival each summer — another plus for your Taiwan experience.

GDP growth slowdown expected to persist

ECONOMIC EXPANSION will likely ease further in 2019 as last year’s interest rate hikes are expected to pull down consumer spending, Natixis Research said, even as it noted that the Philippines will remain “resilient” to global slowdowns.
The global economic research outfit projects Philippine gross domestic product (GDP) growth at 6.2% this year, down from a 6.4% forecast for 2018. If realized, this would be the slowest pace in four years, and would miss the 7-8% growth target set by the administration of President Rodrigo R. Duterte.
Philippine GDP growth averaged 6.3% in 2018’s first three quarters, against a downward-revised 6.5-6.9% government forecast for the entire year. Overall economic expansion slowed to 6.7% in 2017 from 2016’s 6.9%, though keeping within the government’s 6.5%-7.5% target range.
“The great news about the Philippines is that its investment growth is in double digits, which is much-needed after decades of lackluster investment,” Natixis economist Trinh D. Nguyen said in a report published in December.
“While investment remains strong, consumption is decelerating to 5.2% year-on-year in Q3 2018 as higher price pressures bite,” she noted.
“We also expect the tightening measures so far filter through to dampen domestic demand.”
Ms. Nguyen was referring to successive increases in benchmark interest rates fired off by the Bangko Sentral ng Pilipinas in 2018. Policy rates went up by a total of 175 basis points (bp) as the central bank sought to rein in price expectations, at a time when inflation soared to nine-year highs.
Higher borrowing costs are said to have already weighed on consumer spending in the third quarter, resulting in a slower-than-expected 6.1% expansion in those three months.
Still, Natixis said the economy may be headed for a good year, with inflation expected to ease following an uptrend observed a year ago, assisted by a decline in world crude prices. From a high of 5.1% expected of 2018 — actual headline inflation averaged 5.2% in the nine months to November — the overall increase in prices of basic goods is seen averaging 3.5% this year to return to the BSP’s 2-4% target band.
“The Philippines is largely domestic-oriented and likely to be among the most immune to China slowdown and trade war in Asia. We expect growth to remain resilient in 2019 despite a regional slowdown,” Natixis added.
At the same time, the Philippines is expected to continue to post a trade deficit, although narrower than the previous year.
“We expect the Philippines to follow the Fed most closely given its current account deficit position, which means it needs to both stabilize the currency and lift rates. The good news is that the hiking is close to over — expect only a 25 bp hike to take rates to five percent,” the report read.
The key rate now stands at 4.75%, the highest in nearly a decade. — Melissa Luz T. Lopez

SMIC ‘cautiously optimistic’ this year

SM INVESTMENTS Corp. (SMIC) said it is “cautiously optimistic” on the economy this year, while expecting its businesses to sustain its growth.
“We’re still watching the economy, we’re cautiously optimistic of the economy. So for us, it’s business as usual,” SMIC President and Chief Executive Officer Frederic C. DyBuncio told reporters during the company’s media event last Dec. 6 in Makati.
Asked what factors could impact the listed conglomerate’s businesses, Mr. DyBuncio cited ongoing trade war between the United States and China, higher inflation, rising interest rates and peso-dollar rate fluctuations.
“All of those obviously will have some impact here. The degree of that impact we don’t know, we’ll have to wait and see,” Mr. DyBuncio explained.
SMIC’s core businesses include property, banking, and retail, which are primarily consumer-driven. Rising inflation could affect consumers’ spending habits as they adjust to the higher cost of living. This translates to lower profits for businesses, alongside slimmer margins.
Inflation climbed to a nine-year high of 6.7% in September and October, before cooling down to six percent in November. Analysts generally expect inflation to ease this year.
SMIC Vice Chairperson Teresita Sy-Coson, however, noted that sales within the SM Group continued to grow despite elevated inflation last year. She expects the company’s revenues to continue growing this year.
“I think the economy in spite of the inflation, the sales are still growing strong, revenues are going on. So we don’t expect a downtrend,” Ms. Sy-Coson told reporters, noting that the mid-term elections will be a good thing for the consumer sector.
For the property business, Mr. DyBuncio said SM Development Corp. (SMDC) is “very well-positioned” to take advantage of the strong demand.
SMDC, which handles the group’s residential business, booked a 23% increase in revenues to P25.26 billion in the first nine months of 2018, driven by the higher demand for projects from international buyers, overseas Filipino workers, and the emerging middle class.
“All the businesses we have are consumer-focused, and as the economy’s doing well, consumption is doing well, disposable income is increasing, so that’s all very positive for the businesses we’re involved with,” Mr. DyBuncio said.
The company continues to expand its mall business, as it looks to end 2019 with 10.5 million square meters of gross floor area from its shopping malls in the country.
SMIC’s net income attributable to the parent grew by 10% to P26.17 billion in the first nine months of 2018, compared to P23.79 billion it made in the same period a year ago. This came after a 12% year-on-year uptick in gross revenues to P307.42 billion.
Shares in SMIC gained 4.64% or P42.50 to close at P958 each at the stock exchange on Thursday. — Arra B. Francia

Energy World Philippines gets go signal to build LNG facility

By Victor V. Saulon
Sub-editor
THE local unit of Australia’s Energy World Corp. Ltd. (EWC) has taken the lead in the race to build an integrated liquefied natural gas (LNG) facility in the Philippines as its proposal has been cleared by the Department of Energy (DoE).
In a letter dated Jan. 2 to the Australian Securities Exchange, EWC said DoE Secretary Alfonso G. Cusi on behalf of the department had issued Energy World Gas Operations Philippines, Inc. a permit to construct, own and operate an LNG import terminal and regasification facility on Pagbilao Grande island in Quezon province.
“The permit which was issued on 21 December 2018 forms an update to the original permit documentation and provides for a further construction period of 24 months from the permit issue date,” it said.
EWC said the permit would enable the completion date for the first tank of the LNG hub to be aligned to the commercial operation date of the associated 650-megawatt (MW) power plant and the National Grid Corporation of the Philippines switchyard expansion, which is under construction, and for the construction of the second tank.
Separately, Rino E. Abad, director of the DoE’s Oil Industry Management Bureau, told reporters on Thursday that EWC is now leading as far as permitting is concerned.
Mr. Abad said EWC’s proposal was the first to be endorsed by the centralized review and evaluation committee (CREC) for Mr. Cusi’s approval. He said the proposal was simply an extension of EWC’s previously approved project that had encountered delays because of funding issues.
The proposal of Phoenix Petroleum Philippines, Inc. and its Chinese partner China National Offshore Oil Corp. (CNOOC) is currently being evaluated by CREC, he said.
First Gen Corp. and its partner Tokyo Gas Co., Ltd. were the last to submit its project proposal, which is now under evaluation by Mr. Abad’s group for compliance with financial, technical and legal requirements.
Mr. Abad said the issue with EWC’s previous application was mainly on the extension of the project’s previously issued permit.
“The problem is nag-submit siya ng work program pero hindi niya ma-explain ‘yung budget (The problem was it submitted a work program but it was not able to explain its budget.),” he said.
Mr. Abad said the TWG (technical working group) had asked EWC to substantiate its application since at that time, the unfinished project needed around P6 billion to be completed. He said the company had replied with supporting documents, including approval from shareholders that they would release a special fund for the project’s completion.
Ang sa amin naman as long as hindi masyadong vague ‘yung plano ‘yan naman ay ine-encourage natin, sinusuportahan ‘yung investors (From our end, as long as the plan is not too vague, we encourage it and support the investors.),” Mr. Abad said.
He also said that EWC also explained that the release of funds by local lenders depends on the approval by the DoE of the extension permit.
In an earlier interview, EWC Director Graham S. Elliott said the company had resumed talks with local lenders to fund the completion of its 650-MW combined cycle gas-fired power plant.
“We are in the process of finalizing the project funding from the Development Bank of the Philippines and Land Bank [of the Philippines] and other institutions, and hopefully we’re about six to eight months away from commercial operation of the first 200-MW gas turbine,” Mr. Elliott had said.
Francis Nicolas M. Chua, DBP first vice-president and head of the bank’s corporate finance group, confirmed the revival of talks with EWC.

This year, Oscar is more likely to go to a film you have actually seen

THIS YEAR’S Oscar race is one of the most wide open in recent memory, giving some big-studio blockbusters a shot at the best-picture crown after years of victories by indie darlings.
Gold Derby, which tracks the Academy Awards race, lists six films at 10-1 or better, based on picks by critics. A Star Is Born, the drama starring Bradley Cooper and Lady Gaga, is favored by 21 of 30 at the Web site. But they lack conviction, putting the odds at 13-2, a hair above Roma, director Alfonso Cuaron’s tribute to his childhood in Mexico, at 15-2.
This may also be a year that the winner is a film a lot of people have seen. A Star Is Born has taken in more than $388 million in ticket sales worldwide. Roma, which is playing in a handful of theaters to ensure it can compete for an Oscar, is being promoted heavily on Netflix, which has more than 137 million subscribers worldwide. The nominations will be announced Jan. 22, with the Oscar ceremony scheduled for Feb. 24.
Other widely seen films with a strong chance at a nomination include the superhero blockbuster Black Panther, with $1.35 billion in worldwide ticket sales, and the Freddie Mercury biopic Bohemian Rhapsody, at $702.5 million. Last year’s winner, The Shape of Water, took in $195.2 million globally — much of it after capturing the Oscar nomination.
“To see a movie like Black Panther in the conversation is very reassuring,” said Phil Contrino, director of research for the National Association of Theatre Owners. “It shows that the Oscars are more in tune with what the paying public is responding to.”
ON YOUR MARK
Two potential contenders opened in late December: Vice, a satirical biopic about Dick Cheney, and On the Basis of Sex, about the early years of Supreme Court Justice Ruth Bader Ginsburg. From a business standpoint, smaller films like these benefit most from high-profile nominations, with many movie fans often hearing about them for the first time.
The race kicks off Jan. 6 when the Hollywood Foreign Press Association hands out the Golden Globe Awards on NBC. But cinephiles will get more clarity on the favorites later in the month when Hollywood trade groups begin bestowing their honors. In particular, fans should track the Screen Actors Guild, which represents the largest voting bloc in the academy and announces its winners on Jan. 27. The Bafta Awards, bestowed in early February by the British Academy of Film & Television Arts, are also influential.
A Star Is Born has a lot going for it, including a directing and starring role for Mr. Cooper, one of the industry’s most-popular leading men, as well as a hit soundtrack. It’s about the entertainment business, a subject that always seems to appeal to the Oscars voters, members of the Academy of Motion Picture Arts & Sciences. It’s also a major studio production — from Warner Bros. The last major-studio film to be crowned best picture was also from Warner Bros. — Argo in 2012.
ROMA HURDLES
Roma, by contrast, has appeared in just a few theaters, the preferred venue for movie lovers. Although artfully shot in black and white by a director who won the Oscar for 2013’s Gravity, the film would need to overcome Hollywood’s uneasy relationship with Netflix and the streaming service’s unwillingness to distribute its movies widely in theaters.
Black Panther has its own momentum. The academy has been recruiting more minorities in response to criticism such as the #OscarsSoWhite social-media campaign. The organization found itself in trouble in December after announcing that African-American comedian Kevin Hart would host the show, only to have him step down after being called out for homophobic comments he made previously on Twitter.
Black Panther is in line to become the first superhero film to get nominated for best picture. It stars a largely black cast and features a superhero who rises to prevent the exploitation of natural resources in a fictional African nation.
AUDIENCE FAVORITE
Walt Disney Co., which released the film as part of its Marvel universe, is campaigning heavily for an award, including hosting more than 100 academy members at an event in West Hollywood. Chief Executive Officer Bob Iger even asked Oprah Winfrey, who had nothing to do with the picture, to come show her support.
Having Black Panther in the mix would burnish Disney’s image with filmmakers and also likely help the TV ratings for the Oscar ceremony. It’s carried on the company’s ABC network and has suffered a loss of viewers in recent years. The academy has flirted with a most-popular-film category to boost the audience.
“If they were to recognize a film with that kind of political and cultural impact, that would be tremendous,” said Barton Crockett, an analyst with B. Riley FBR Inc. “It would be very good for the industry.” — Bloomberg


Odds-on favorites says Gold Derby

• 13-2 for A Star is Born (Warner Bros.)

• 15-2 for Roma (Netflix)

• 8-1 for Green Book (Universal)

• 17-2 for The Favourite (Fox Searchlight)

• 9-1 for BlacKkKlansman (Focus Features)

• 19-2 for Black Panther (Disney)