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‘Panda’ offer next after successful euro bond sale — Treasury official

DAYS after the government raised €750 million ($842.33 million) in eight-year euro-denominated bonds, the Bureau of the Treasury (BTr) said the planned yuan-denominated “panda” bonds could be issued within the week, even as the government monitors market conditions abroad.

“As the [National] Treasurer [Rosalia V. De Leon] has mentioned, we may go ahead this week if there’s an opportunity. But we’re still looking at the market,” Deputy Treasurer Erwin D. Sta. Ana told reporters on Tuesday. “There’s no pressure for us, but rather we’re looking for that sweet spot.”

The government plans to issue 2.5 billion yuan ($363.63 million) in panda bonds “most likely in May,” its second such offer. Ms. De Leon had said early in April that those notes could be sold with three- or five-year tenors, but Mr. Sta. Ana said yesterday they will have “just one tenor” even as he declined to elaborate.

Last week, Ms. De Leon said the Treasury had already secured approvals from the People’s Bank of China as well as National Association of Financial Market Institutional Investors, and that it was just waiting for “the right market conditions before selling.”

“We are in the middle of retaliatory action between the US and China,” Mr. Sta. Ana said, referring to the latest trade war escalation that saw the United States last Friday raising tariff rates to 25% from 10% previously on $200 billion worth of Chinese goods and Beijing saying it would take “necessary countermeasures”.

“We will closely monitor what’s happening as it affects the Chinese interbank market,” he added. “We’ll see how the benchmark moves in the next couple of hours or days.”

The planned yuan-denominated debt sale would be bigger than 1.46-billion renminbi ($230 million) bonds sold by the government in March last year that marking its first foray into China’s capital market. The three-year papers fetched a five percent coupon.

Tuesday’s update on planned “panda” bond sale comes days after the government returned to the European market in more than a decade, raising €750 million in eight-year global bonds with coupon of 0.875% and priced 70 basis points over benchmark.

The Philippines, one of Asia’s most active sovereign bond issuers, plans to borrow P1.189 trillion this year, 75% of which will be sourced domestically while the balance will be from foreign creditors.

This will be used to fund a budget deficit programmed at P624.4 billion, equivalent to 3.2% of gross domestic product, and support increased government spending programmed at P3.774 trillion.

In January, the Philippines sold $1.5 billion in 10-year offshore dollar bonds.

The government is also looking at offering “samurai” bonds amounting to $1-1.5 billion in yen equivalent some time next semester, as well as another round of offshore dollar bonds. — Karl Angelo N. Vidal

Car sales flat in April

AUTO SALES in April roughly steadied from a year ago, even as they dipped from the preceding month, according to latest data which the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association sent to reporters on Tuesday.

The data showed car sales edging up by a mere 0.8% to 25,799 vehicles in April from 25,583 units a year ago, even as the latest tally was 19.8% less than March’s 32,173 units.

The latest count brought year-to-date sales to 111,187 units, sliding 0.4% from 111,620 vehicles sold in 2018’s first four months.

April alone saw passenger car sales, which contributed 29.69% to the total, drop 22.7% to 7,661 vehicles from the 9,910 units sold a year ago, and by 16.85% from March’s 9,214 vehicles.

Commercial vehicle sales, which accounted for 70.31% of April’s total, rose 15.7% to 18,183 vehicles from 15,673 units a year ago, even as they were 21% less than the 22,959 vehicles sold in March. Under this category, sales of Asian utility vehicles totaled 2,178 units, down 36.70% from 3,439 a year ago, while sales of light commercial vehicles rose 35.4% in sales to 14,954 vehicles from 11,045 units a year ago.

Year-to-date, passenger car sales dropped 12.8% to 33,833 vehicles from 38,817 units in 2018’s first four months, while sales of commercial vehicles rose 6.3% to 77,354 units from 72,803 units.

The auto industry expects to grow sales by a tenth this year from 357,410 vehicles in 2018 that saw a 16% drop — the first fall in seven years, as new auto excise taxes and inflation’s surge dampened market appetite.

In an e-mail to reporters yesterday, CAMPI President Rommel R. Gutierrez said that although sales have been “erratic” on a monthly basis, the group expects a “positive growth trend on a yearly basis will continue to improve in the coming months.”

Year-to-date, Toyota Motors Philippines Corp. continued to top other manufacturers with a 40.47% market share with 44,997 vehciles sold, 4.9% less than 47,307 units sold a year ago. — Janina C. Lim

DoF: IPPAs, electricity co-ops owe PSALM P59.23B in unpaid bills

By Victor V. Saulon
Sub-Editor

SOUTH PREMIERE Power Corp. (SPPC), a unit of listed conglomerate San Miguel Corp. (SMC), topped the list of entities with the biggest unpaid loans to the government agency tasked to privatize state energy assets, the Finance department said on Tuesday.

SPPC and other independent power producer administrators (IPPA), along with electricity cooperatives, dominate the list of corporate entities with long overdue accounts with the Power Sector Assets and Liabilities Management Corp. (PSALM) amounting to a combined P59.23 billion as of December 2018, the Department of Finance (DoF) said in a statement.

The overdue debts of the SMC subsidiary amounts to P19.75 billion, it said. A representative of the company said the issue surrounding the supposed unpaid debts is still in the court. The representative also said SMC President and Chief Operating Officer Ramon S. Ang was out of the country, but a response is being prepared.

A report by PSALM to Finance Secretary Carlos G. Dominguez III, who chairs the firm’s board of directors, showed that several IPPAs have unpaid accounts of P28.46 billion as of end-2018, the DoF statement said. It said some of the IPPAs are contesting the amounts due in courts or in arbitral tribunals.

Many of the accounts were transferred by the National Power Corp. (Napocor) to PSALM when Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001 (EPIRA), was enacted.

IPPAs are qualified private entities that manage output from the energy conversion and power purchase agreements that Napocor entered into with the independent power producers. They are appointed through public biddings conducted by PSALM.

SPPC led by Elenita G. Go, its president, administers the 1,277-megawatt Ilijan gas-fired power plant in Batangas City. PSALM earlier terminated the IPPA, but the move was enjoined by the courts.

“Due to these overdue accounts, the government through PSALM is constrained to resort to borrowings that the national government guarantees, in order for PSALM to timely fulfill its mandate of liquidating the financial obligations of [Napocor],” said Irene Joy B. Garcia, PSALM president and chief executive officer.

She said last year, the firm borrowed about P23 billion to pay its maturing obligations, and that it is set to borrow $1.1 billion for obligations maturing by the end of May. As a result, it had to pay interest, guarantee fees and other finance charges of about P2.62 billion a year. Had the IPPAs and electric cooperatives paid, PSALM would not incur the additional costs, she added.

In the statement, Mr. Dominguez said “all these borrowing costs could have otherwise been utilized by the government for the construction of public school classrooms or to build roads and bridges.” It added that he instructed PSALM to “relentlessly” pursue collection efforts against the IPPAs and use all available remedies to protect the rights of the government and the Filipino people.”

DoE said Vivant-Sta. Clara Northern Renewables Generation Corp. (Vivant-Sta. Clara), formerly owned by Vivant Energy and Sta. Clara Power Corp., owes P3.86 billion to PSALM, which awarded it an IPPA contract for the Bakun Hydroelectric Power Plant in Ilocos Sur. It also said Vivant-Sta. Clara filed a petition for rehabilitation.

The renewable energy company was bought by North Renewable Energy Corp. in October last year, but the DoF said despite the change in ownership, no payment had been made to PSALM for its overdue accounts.

Sought for comment, Shem Jose W. Garcia, Vivant assistant vice-president for corporate communication, said the debts piled up because of the combination of low prices at the wholesale electricity spot market, and the dry weather. The hydro project is reliant on the flow of water, he added.

“We knew that was an issue when we sold it so the new buyers were aware,” Mr. Garcia said by phone.

The DoF said Good Friends Hydro Resources Corp. of Lucio Lim Jr. has yet to pay PSALM P1.16 billion, while FDC Utilities, Inc. led by Juan Eugenio Roxas as its president-CEO and a subsidiary of Filinvest Development Corp., owes P1.12 billion. Both IPPAs were involved with the contract to administer the Unified Leyte Geothermal Power Plants.

A Filinvest Utilities subsidiary, the FDC Misamis Power Corp., a subsidiary of FDC Utilities, also owes PSALM P2.56 billion, as the previous IPPA for the Mindanao I and II geothermal power plants, it added.

The PSALM report also listed 10 electric cooperatives and industries with unpaid obligation to PSALM at a combined total of P28.74 billion as of end-2018. The Lanao del Sur Electric Cooperative (Lasureco) has the highest and longest overdue account at P9.63 billion that dates back 16 years, the report said.

Edgardo R. Masongsong, administrator of the National Electrification Administration (NEA), said in a text message that as far as electric cooperatives are concerned, only PSALM has the data and is familiar with what is due it.

He said in most cases, those in distress, as listed by the DoF, encounter difficulties in settling their obligations with the company.

He said in the case of Lasureco, what it owes came from a principal amount of P3 billion.

“The P6 billion or thereabouts can be attributed to interests and surcharges compounded thru the years,” Mr. Masongsong said.

“Although Lasureco owes that much to PSALM, it has no intentions of reneging on its obligations and recognizes that these were long overdue. We at NEA believe that all these electric cooperatives need are proper assistance and enough capacitation which the present NEA extends to rehabilitate ECs so that in the near future, these indebtedness to PSALM can finally be settled.”

Janeene D. Colingan, executive director and general manager of the Philippine Rural Electric Cooperative Association, Inc., did not respond to a query via text or phone on Tuesday.

Department of Energy Assistant Secretary Redentor E. Delola, who was recently in Mindanao to oversee an issue on an electric cooperative, also did not respond.

PSALM said Public Utilities Department of Olongapo City, although no longer a client, still owes P6.07 billion in obligations, representing more than nine years of overdue power bills, over 10 years of unpaid value-added tax (VAT) payments, and five years of penalties and interest.

It is second on the list of the top 10 entities consisting of electricity cooperatives and industries with long overdue accounts with PSALM.

PICOP Resources Corp., a defunct company previously owned by TP Holdings, Inc. is third with pending overdue accounts since 2008, which now amounts to P2.96 billion.

Albay Electric Cooperative, Inc. has P2.61 billion of unpaid power bills, VAT and interest and penalties. Its unpaid account dates back to 2006. It is no longer PSALM’s customer and is now known as the Albay Power Energy Corp.

Others on the list are Maguindanao Electric Cooperative, Inc., which has P1.76 billion in unpaid obligations of more than 10 years of overdue power bills; Global Steelworks International, Inc., now known as Global Steel Philippines, a subsidiary of Global Steel Holdings Ltd., with an unpaid account since 2009 and overdue power bills amounting to P1.68 billion.

In seventh place is Pampanga III Electric Cooperative Inc., with P1.27 billion in unpaid obligations, with at least four years overdue in its restructured account and more than two years of interest and penalties. The cooperative has requested for a restructuring of its account, PSALM said.

Davao del Norte Electric Cooperative Inc. is next with P1.24 billion in overdue obligations. PSALM said negotiations are ongoing on the coops overdue restructured account and power bills.

The rest are the defunct Magellan Cogeneration, Inc., which used to be controlled by Covanta Energy and has P750.86 million in unpaid obligations; followed by the former Bacnotan Steel Corp., now known as Union Galvasteel Corp. of the Phinma Corp., with P743.68 million.

PSALM said that besides the Lanao del Sur cooperative and the other electric cooperatives on the top 10 list, five other electric cooperatives were among the firms with the largest pending obligations.

These are Northern Samar Electric Cooperative Inc. with P742.13 million in overdue line rentals, restructured account, power bills and VAT. A revised restructuring scheme was signed with the coop in November last year, PSALM said.

Also on the list is Sorsogon II Electric Cooperative Inc. with P510.15 million in overdue power bills, restructured account, VAT and interest and penalties. Samar I Electric Cooperative Inc. with P303.04 million in unpaid restructured account, power bills, VAT and line rentals. A revised restructuring scheme was signed by the coop with PSALM last Nov. 29, the report said.

Zamboanga del Sur II Electric Cooperative Inc. has an overdue account since 2017 that now amounts to P275.69 million. Sorsogon I Electric Cooperative has unpaid obligations of P206.23 million to PSALM with overdue restructured account. PSALM said it has negotiations with the coop for the settlement of its outstanding obligations.

GT Capital earnings slide in Q1

By Arra B. Francia, Senior Reporter

GT Capital Holdings, Inc.’s attributable profit slumped by eight percent in the first quarter of 2019, following lower sales from its auto and property segments.

In a regulatory filing, the listed conglomerate said net income attributable to the parent went down to P3.42 billion from the P3.74 billion it delivered in the same period a year ago.

“The decline was principally due to slow revenue growth from real estate sales and automotive operations,” the company said.

Revenues went up by three percent to P47.02 billion, driven by higher contributions from its banking and insurance businesses.

Automotive operations through Toyota Motor Philippines Corp. (TMP) recorded flat revenue growth to P33.8 billion, resulting to a 25% drop in net income to P1.8 billion. TMP’s retail sales volume reached 33,554 units during the quarter, three percent lower than the 34,440 units it sold in the same period a year ago.

With this, TMP’s market share declined to 34.6% by end-March, versus 35.5% last year. TMP remains to be the dominant auto maker in the Philippine market despite the drop.

GT Capital President Carmelo Maria Luza Bautista noted that the first-quarter results are already showing signs of improvement, given that they saw a 12% volume decline last year following the implementation of the tax reform law that increased excise taxes on new vehicles.

“This for us is a sign of recovery. It’s a good indicator showing easing inflation and the rebound in consumer sentiment,” Mr. Bautista said in a media and analysts’ briefing for first-quarter results in Taguig, Tuesday.

“We’re quite confident that as inflation stays benign and as consumer confidence starts to normalize at its previous levels, the volume sales will catch up in the rest of the year,” Mr. Bautista said.

Metropolitan Bank and Trust Company (Metrobank) grew its net income by 15% to P6.8 billion, boosted by loan growth and margin expansion and higher fee-based income. Metrobank’s loan portfolio was up by nine percent to P1.4 trillion for the quarter, while deposits reached P1.6 trillion.

Consolidated assets for the listed lender hit P2.3 trillion, while equity stood at P288.7 billion.

Its property segment through Federal Land, Inc. and Property Company of Friends, Inc. (Pro-Friends) generated a combined profit of P431.1 million in the first quarter, from a six percent increase in consolidated revenues to P4.6 billion.

GT Capital disclosed last week that it is divesting its 51% stake in Pro-Friends, in exchange for P20 billion worth of land covering 702 hectares mostly in Cavite. The divestment comes four years after GT Capital first acquired a 22.68% stake in Pro-Friends back in 2015, and a 28.3% stake in 2016.

Mr. Bautista said the 702-hectare land bank under Pro-Friends is no longer suited for affordable housing projects, which was the purpose for investing in the company in the first place.

“The investment rationale at that point was really to gain a foothold in affordable, we saw it as a good complement to our existing property development arm which was Federal Land being in mid- to high-end condominium all in Metro Manila,” Mr. Bautista said.

Meanwhile, GT Capital’s affiliate Metro Pacific Investments Corp. registered a core net income of P3.7 billion, three percent higher year on year. The infrastructure conglomerate’s performance was supported by higher earnings from the Manila Electric Company, volume growth from Maynilad Water Services, Inc., and the higher number of patients in its hospital unit.

Insurance provider AXA Philippines posted a 46% increase in consolidated net income to P808.4 million.

Shares in GT Capital plunged 4.12% or P35 to close at P815 each at the stock exchange on Tuesday.

Airline, property units lift JG Summit Q1 profit

JG SUMMIT Holdings, Inc. saw its attributable profit surge 54% in the first quarter of 2019, following the double-digit expansion of its airline and real estate businesses.

In a regulatory filing, the Gokongwei-led conglomerate reported a net income attributable to the parent of P7.44 billion, versus P4.82 billion in the first quarter of 2018.

“Increase is mainly due to the double-digit income growth in our airline and real estate businesses, partially offset by the income decline in petrochemicals business and coupled by the foreign exchange translation gains and market valuation gains on the Group’s financial assets during the period,” the company said.

Consolidated revenues also went up 8.7% to P76.26 billion. The company attributed the higher top line to the performance of its core subsidiaries, namely Universal Robina Corp. (URC), Cebu Air, Inc., and Robinsons Land Corp. (RLC).

URC’s revenues went up 8.7% to P33.32 billion, thanks to the improvement in sales across domestic branded consumer foods, feeds, and commodity foods. The listed food and beverage manufacturer then increased its attributable profit by 2.9% to P3.04 billion.

Meanwhile, the operator of budget carrier Cebu Pacific delivered a 138.4% surge in net income to P3.43 billion, after a 16% growth in gross revenues to P21.18 billion.

Cebu Air tallied a 14.6% increase in passenger revenues to P15.68 billion for the period, after passenger volume went up 8.5% to 5.29 million. The company further benefited from a 5.7% increase in average fares to P2,965 for the period.

For RLC, attributable profit rose 19% to P1.83 billion after revenues also added seven percent to P6.78 billion. The commercial centers division posted revenues of P3.14 billion, as the listed property developer got a lift from newly opened malls including Robinsons Place Ormoc, Robinsons Place Pavia, Robinsons North Tuguegarao, and Robinsons Place Valencia.

The strength of RLC’s commercial centers business offset the lower revenues booked by its residential arm, which saw a seven percent drop in top line contribution to P1.97 billion.

The petrochemicals group, composed of JG Summit Petrochemicals Corp. and JG Summit Olefins Corp., generated gross revenues of P9.57 billion, 8.3% lower year on year due to lower average selling prices for its products.

Higher costs also weighed on the petrochemical group, which swung to a net loss of P730.40 million against a net income of P826.30 million in the same period a year ago.

Robinsons Bank Corp. also posted a 57.5% decline in earnings to P42.53 million, despite a 40% jump in banking revenues to P1.89 billion.

At the same time, JG Summit realized P2.74 billion from equity in net earnings of associated companies and joint ventures, 11% higher year on year. The company has investments in Singapore’s United Industrial Corp., the Manila Electric Company, and Global Business Power Corp.

Shares in JG Summit fell 3.25% or P2 to close at P59.50 each at the stock exchange on Tuesday. — Arra B. Francia

Semirara Mining income falls 49% in 1st quarter

By Victor V. Saulon, Sub-Editor

SEMIRARA Mining and Power Corp. (SMPC) reported a 49% drop in first-quarter net income to P2.33 billion from P4.57 billion as the selling prices of coal and power, the company’s sources of revenues, decreased during the period.

In a disclosure to the stock exchange, the Consunji-led company said the coal segment of the business, net of eliminations, and energy subsidiary Southwest Luzon Power Generation Corp. (SLPGC) contributed P2.13 billion and P226.10 million, respectively. SMPC unit Sem-Calaca Power Corp. (SCPC) posted a net loss of P22.37 million in the first quarter.

The listed integrated energy company said coal production slipped by nearly 2% to 4.06 million tons from 4.12 million tons in the same period last year, with the 37% increase in the strip ratio to 12.53 from 9.12 a year ago.

Export sales rose, lifting total coal sales by 4% to 3.55 million tons compared with 3.42 million tons previously. The drop in global coal prices resulted in an 18% decrease in the average selling price of coal to P2,272 per ton from P2,786 per ton a year ago.

Junalina S. Tabor, SMPC chief finance officer, said this year’s prospects for coal would depend on the China market, which dictates prices.

“Mahirap talaga siya i-predict so much so that our exports is based on spot [prices], depende ’yun sa China market, China traders kung ano talaga what they are offering to us,” she said in a chance interview before the release of the quarterly figures.

“So ’yung Newcastle index is just used as our reference point so alam namin where can we negotiate up to how high, how low,” she said. “But it’s really dictated by China market for the export.”

Energy sales of SCPC and SLPGC increased by 11% to 638 gigawatt-hours (GWh) in the first quarter from 575 GWh in the same period last year. Softer global coal prices also affected power average selling price, which declined by 19% to P4.32 per kilowatt-hour (kWh) from P5.35 per kWh a year ago.

Total power generation during the quarter fell to 508 GWh from 642 GWh, the listed company said. SCPC’s unit 1 is on a six-month life extension program (LEP) since Dec. 30, 2018.

“LEP is a cost-effective strategy to maintain and upgrade operations of existing facilities beyond its traditional lifetime, at the same time to limit environmental complications and financial risks,” the company said.

SCPC’s unit 2 will also undergo LEP as soon as unit 1 becomes commercially available. The plant’s outages and deration during the quarter were due to boiler tube leaks and repair of condenser.

SLPGC’s unit 3 was also down for a total of 29 days in the first quarter, mostly due to boiler issues. Its unit 4 was placed on maintenance shutdown after experiencing tube leaks in mid-January. The incident advanced the planned maintenance shutdown for the middle of the year. There are no other planned outages for the unit for the rest of the year, the company said.

The power segment incurred a total loss of P95 million for purchases of replacement power totaling to 216 GWh in first quarter.

Ms. Tabor said the prospects are better this year because of the higher prices at the spot market, to which the company sells its excess power capacity.

On Tuesday, shares in SMPC closed higher by 3% to close at P22.35 each.

Shakey’s earnings up 2.5% in Q1

SHAKEY’S Pizza Asia Ventures, Inc. (SPAVI) saw earnings rise 2.5% in the first three months of the year, thanks to higher number of stores and steady margins despite the seasonally slow quarter.

In a regulatory filing, the listed full-service restaurant operator said net income was up 2.5% to P188 million from January to March, compared to P184 million in the same period a year ago.

Systemwide sales climbed 5.5% to P2.34 billion, against P2.21 billion in the same period a year ago. This resulted to a four percent increase in revenues to P1.84 billion.

“The first three months was a slow start to the year, typical of the post-holiday season, but also reflective of continued weakness in consumer sentiment with last year’s inflationary pressures,” SPAVI President and Chief Executive Officer Vicente P. Gregorio said in a statement.

“Growth was also affected by the timing of Holy Week, a strong sales period for our business which falls in the second quarter of this year versus the first quarter in the last. Finally, we are seeing continued entry of new players and aggressive promotional activity in the industry,” he added.

Despite tighter competition in the industry, SPAVI maintained its net income margin of 10%, while return on equity stood at 19%.

SPAVI is keeping its double-digit profit growth guidance for the year, as it hopes to recover in the next nine months.

The company opened one new store in the Philippines and one abroad, bringing its store count to 229 in the country and three overseas.

It is scheduled to open seven more stores in the second quarter, as part of plans to have 20 new stores for a total of 248 outlets nationwide by end-2019.

SPAVI also looks to have at least 20 outlets overseas in the next few years, as it already has two international area development agreements.

Apart from its Shakey’s store expansion, the company has also started bringing in other brands to its portfolio. The company is on track to close its acquisition of Peri-Peri Charcoal Chicken this June.

“We are looking forward to better performance for the balance of the year, with the addition of the Peri brand to our platform and seasonally stronger sales in the second half…Overall, we continue to remain positive in the long-term growth prospects of the casual dining space,” Mr. Gregorio said.

Shares in SPAVI fell 4.05% or 54 centavos to close at P12.80 each on Tuesday. — Arra B. Francia

Higher finance costs weigh on RWM operator’s bottom line

THE owner and operator of Resorts World Manila (RWM) recorded a 45% drop in attributable profit in the January to March period due to higher finance costs.

In a regulatory filing, Travellers International Hotel Group, Inc. (TIHGI) said net income attributable to the parent fell to P244.44 million, against the P445.13 million it posted in the same period a year ago.

Finance costs ballooned to P463.85 million during the period, against P23.35 million in the first quarter of 2018.

The lower profit came amid a 46% uptick in revenues to P6.9 billion, which the company attributed to better performance from both its gaming and non-gaming segments.

Gross gaming revenues jumped 53.8% to P6.89 billion, boosted by more casino drops from VIP and non-VIP customers.

TIHGI also benefited from the increase in gaming capacity to 300 tables, 1,830 slot machines and 100 ETG machines by end-March, compared to 233 tables and 1,321 slot machines in the same period last year. This was due to the opening of the Grand Wing’s ground floor gaming area last year.

“We’ve been receiving very positive comments after the soft opening of the Grand Wing last year. We are confident that we can deliver sustainable top line and EBITDA growth moving forward,” TIHGI President and Chief Executive Officer Kingson U. Sian said in a statement.

The Grand Wing will feature three levels of gaming, entertainment, and rental spaces. It will also house one more new hotel, Hotel Okura Manila, that will be opened in the second half of the year.

“With the opening of Hotel Okura Manila in the second half of this year, total room count at the Resorts World Manila complex will be approximately 3,500, supporting the continued growth of the Philippine tourism industry,” Mr. Sian said.

Meanwhile, non-gaming revenues stood at P1.23 billion, 66.2% higher year on year. The company opened three new hotels since the second quarter of 2018, namely Hilton Manila, Marriott Iloilo, and Sheraton Manila. This increased its room count by 1,073 to a total of 2,527 by end-March.

Average occupancy rates also improved to 78% for the period.

Shares in TIHGI were unchanged at P5.63 each on Tuesday. — Arra B. Francia

Emperador nets P1.7 billion

EMPERADOR, Inc. said brandy products lifted its bottomline in the first three months of 2019. — COMPANY HANDOUT

EARNINGS of Emperador, Inc. rose 10% in the first quarter of 2019, driven by the introduction of more products both locally and abroad.

In a statement issued Tuesday, the listed liquor manufacturer said net income attributable to the parent hit P1.74 billion for the first three months of the year, on the back of a 13% increase in revenues to P11 billion.

“Our overall business continues to show robust performance… Whisky and premium brandy sales in the first three months of 2019 again proved to be strong. This continues to be driven by our malt whisky and premiumization strategy,” Emperador President Winston S. Co said in a statement.

Emperador said its brandy products also boosted earnings for the period, with brands Fundador and Tres Cepas emerging as the fastest growing brandies in the Philippines against other foreign brands.

Other brands introduced over the last two years are three malt whiskies under the portfolio of Scotch whisky maker Whyte and Mackay, namely Tamnavulin, Fettercairn, and Shackleton. The company noted that the three brands showed “robust signs of growth” for the quarter.

The Shackleton brand — initially intended for the United Kingdom, United States, and travel retail market — will be launched in the Philippines this year.

The company also continued its expansion to different regions, including Europe, North America, the Middle East, Africa, and the Asia Pacific.

Emperador has recently extended its P5-billion share buyback program by another 12 months, since the activity is scheduled to end on May 15. The company has only bought back about P2 billion consisting of 279 million shares in the past two years.

A share buyback program is conducted when a firm believes that its stocks are undervalued and also to boost its financial statements.

Shares in Emperador added a centavo or 0.13% to close at P7.53 each at the stock exchange on Tuesday. — Arra B. Francia

Gov’t makes full award of T-bills as yields decline on BSP rate cut

THE GOVERNMENT borrowed P15 billion as planned at its Treasury bills (T-bill) auction yesterday, with yields declining across all tenors following the policy rate cut of the Bangko Sentral ng Pilipinas (BSP).

The Bureau of the Treasury (BTr) made a full award of the debt notes it auctioned off on Tuesday as bids offered by banks surged to P54.6 billion, more than thrice the amount the Treasury wanted to borrow.

Broken down, the government borrowed P4 billion as programmed via the 91-day tenor yesterday as bids amounted to P19.85 billion. The average rate declined 4.9 basis points (bp) to 5.389% from the 5.438% logged in the previous auction.

The Treasury also made a full award of the 182-day T-bills as it accepted P5 billion as planned out of offers totalling P15.778 billion. The average yield slipped 5.7 bps to 5.768% from last week’s 5.825%.

For the 364-day T-bills, the government borrowed the programmed P6 billion out of the P19.01 billion tendered by banks. Its average yield likewise slid 4.1 bps to 5.936% from the 5.977% quoted in the previous offering.

Based on the PHP Bloomberg Valuation Service Reference Rates, the three-month, six-month and one-year papers were quoted at 5.572%, 5.841% and 5.994% yesterday, respectively.

Following the auction, Deputy Treasurer Erwin D. Sta. Ana said the Treasury saw a good turnout, citing the robust demand and lower rates seen at the fund-raising exercise.

“That’s in line with the market feedback that we got prior to the auction. They are anticipating about five to 10 basis points lower,” Mr. Sta. Ana told reporters yesterday.

He added that the decline in yields across the board was “primarily driven by the rate cut last week and possible RRR (reserve requirement ratio) cut as the BSP Governor [Benjamin E. Diokno] has alluded in the past couple of days.”

The central bank last week trimmed benchmark interest rates by 25 bps to a 4-5% range, citing the “manageable” inflation outlook on the back of a decline in food prices amid improved supply conditions.

Headline inflation continued to ease for the sixth straight month in April to 3%, slower than the 3.3% recorded in March and beating market consensus.

Sought for comment, Robinsons Bank Corp. peso sovereign debt trader Kevin S. Palma said the auction result yesterday was within expectations, as the BSP’s policy rate cut caused yields to reprice lower from the previous T-bills auction.

“The auction had a strong turnout as the market is still anticipating a cut in banks’ reserve requirement when the Monetary Board meets this Thursday,” Mr. Palma said in a mobile phone message.

The central bank made no reduction in the reserve ratio last week, although the BSP chief said it will be “on the agenda” of the Monetary Board’s meeting this week.

Currently, universal and commercial banks are required to keep at least 18% of their total deposits with the BSP.

Trimming the RRR is expected to unleash about P90 billion in liquidity into the financial system, which can used for loans or investments.

“Icing on the cake was the reinvestment demand from a P13-billion T-bill maturity on May 15,” Mr. Palma added.

The government plans to borrow P315 billion from the domestic market this quarter, broken down into P195 billion in T-bills and P120 billion through Treasury bonds. — Karl Angelo N. Vidal

Post-election messages of patriotism told through the kundiman

By Michelle Anne P. Soliman, Reporter

AN ARTIST’S work is inspired by many things. It may be his environment, the events in his community, or his personal experiences. For playwright Floy Quintos, current events in his country inspired the creation of what he previously said would be his “swan song.”

“When I wrote this play, I was just feeling very worried about the country, that’s all,” Mr. Quintos said.

PETA Theater opens with a limited run of The Kundiman Party on May 24 — a week after the Philippines’ midterm elections.

The creators of the show believe that “the outcome of the elections will be the start of a greater struggle, the beginning of a new chapter in the fight to regain our national dignity,” according to a press release.

Directed by Dexter M. Santos, the play was first produced by the UP Playwright’s Theater in 2018.

After its run last year, Mr. Quintos felt that it was “time to let go of the play” until news about the midterm elections started coming out. “Late last year, (actor, director, and PETA’s Chief Operations Officer) Melvin Lee approached me about staging it again here (in PETA),” Mr. Quintos said at the press launch in PETA Theater Center on May 2, adding that PETA Theater’s management believed in the material after seeing the show and “what it can say [even] in a post-election scenario.”

The play revolves around a retired kundiman and classical singer Adela Dolores who spends her time teaching kundiman to young students and her matronly friends who are interested in that particular genre of Filipino love songs. Adela’s life takes a turn when one of her students, Antonette, introduces her to her activist-boyfriend, Bobb, who acquaints Adela with social media. Then the story shifts from hilarious to serious.

Actors reprising their roles in the original production are Shamaine Centenera-Buencamino as Maestra Adela, Frances Makil-Ignacio as Tita Mayen, Stella Cañete-Mendoza as Tita Helen, and Jenny Jamora and Missy Maramara alternating as Tita Mitch. Also reprising their roles are Miah Canton as the young soprano Antoinette and soprano Rica Nepomuceno as the professional kundiman singer Melissa.

The newcomers in the cast are 2011 NAMCYA first prize piano competition winner Gabriel Paguirigan who makes his acting debut as Ludwig, the Maestra’s accompanist; Boo Gabunada (Mula Sa Buwan and Ang Huling El Bimbo) takes on the role of Bobby; and Nonie Buencamino takes on the role of Senator Juancho Valderama who is Bobby’s estranged father.

WHAT MAKES A KUNDIMAN?
The story is told with kundimans — featuring piano arrangements by National Artist for Music Ryan Cayabyab and additional scoring by his daughter Krina Punsalan Cayabyab — composed by Nicanor Abelardo (“Mutya ng Pasig,” “Nasaan Ka Irog”) and Francisco Santiago (“Pakiusap,” “Pilipinas Kong Mahal”).

Popularized at the end of the 19th century, a kundiman is an art song with themes of love. It has also evolved to include themes about patriotism and oppression by a colonizer or dictator.

“It started as an extemporaneous singing… It has always been about love, but it has evolved into other aspects,” UP College of Music professor Rica Nepomuceno, who plays the soprano Melissa, said of the kundiman.

“It is quite challenging for us to be using the kundiman now. With the influx of popular music, not only Filipino popular music, but also the foreign popular music, the audience now — especially the young ones — are not very familiar with the songs,” Ms. Nepomuceno said of the challenge in making kundiman relevant.

She also noted that the expression of a deep devotion for anything makes the art song relatable in the story. “Kundiman is still very much alive even if consciously we don’t know. We use it [always] when there’s an urgent need to express devotion,” Ms. Nepomuceno said.

SOCIAL RELEVANCE
The play hopes to inspire vigilance among viewers. “The Kundiman Party will touch not just minds but more importantly hearts. It will inspire, we hope, a wider audience to be engaged in what is happening in the country today,” said PETA President Cecilia B. Garrucho about the show’s goal.

“I have no potential of my work ever being a classic. That has never been my concern. I write, I think for the ‘here and now,’” Mr. Quintos said, adding that it was a realization among the cast members that the story “still seems so fresh” as it was a year ago.

“I’m glad [enough] that we have started some sort of conversation with the audience and some sort of introspection. I think that’s the main purpose of our art,” he said.

The Kundiman Party runs from May 24 to June 2 at the PETA Theater Center in Quezon City. For information and tickets, visit www.facebook.com/pages/category/Performance-Art-Theatre/The-Kundiman-Party-at-the-PETA-Theater-1087627344777762/

8990 profit jumps 17% in January-March

8990 HOLDINGS, Inc. booked a 17% increase in net income in the first quarter of 2019, driven by sales of its housing projects in the National Capital Region (NCR), Iloilo, and South Luzon.

In a disclosure to the stock exchange on Tuesday, the listed mass housing developer said that its net income grew to P1.177 billion during the January to March period, from P1.009 billion in the same period last year.

Revenues jumped 20% to P3.01 billion in the three-month period, as the company sold 2,204 housing units which was 23% up from year ago figures.

Sales from NCR projects accounted for 25% of the total, followed by Iloilo projects, which accounted for 12% and South Luzon projects with 11%.

The developer said it had P1 billion in unrealized sales for the quarter, which will be recognized in succeeding quarters.

“Our focus has always been on strengthening our business and growing the company. As a result we have shown that we can constantly show solid growth. This year will be a very exciting year for us as we continue to strengthen our core business and roll out new projects that would secure our place as the country’s top affordable home developer,” Willibaldo J. Uy, president and chief executive officer of 8990, said in a statement.

This year, the company is eyeing to grow its revenue by about 15% to P13.5 billion from P11.75 billion it recorded in 2018. This will be generated mostly through Luzon projects like Urban Deca Homes Manila located in Tondo, Manila.

Urban Deca Homes Manila is a 13-tower residential development featuring 13,000 units with an estimated value of P20 billion.

The company’s other projects include: Deca Clark Resorts Residences in Pampanga; Urban Deca Homes Manila in Tondo, Manila; Urban Deca Homes Marilao in Bulacan; Urban Deca Homes Hampton and Urban Deca Homes Mahogany in Cavite; Deca Homes Pavia Resorts Residences 2 and Deca Homes Sta. Barbara in Iloilo; Deca Home Bacolod in Bacolod; Urban Deca Homes Tisa 2 and Urban Deca Homes H. Cortes in Cebu; and Deca Homes Mulig in Davao. These 11 projects will contribute 37,715 housing units once they are completed.

Shares in 8990 went up by 1.27% or 0.18 centavos to close at P14.4 each at the stock exchange on Tuesday. — Vincent Mariel P. Galang

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