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Wawa dam water supply for Metro Manila could face delay — proponent

RAZON-LED Prime Metroline Infrastructure Holdings, Inc. (Prime Infra) warned on Monday that it might not be able to deliver water to Metro Manila as scheduled in 2021 from Wawa dam in Rizal, citing the delay in government approval of the project.

“The development work to ensure water supply delivery of 80 million liters per day (MLD) in 2021 and over 500 MLD in 2025 that will address the ongoing water crisis in Metro Manila may not push through as planned,” the company said in a statement.

The company said it “continues to wait for the final approval of the project from the Metropolitan Waterworks and Sewerage System (MWSS).”

The Wawa bulk water supply project is a joint venture between Prime Infra of businessman Enrique K. Razon Jr. and San Lorenzo Ruiz Builders and Developers Corp. of Oscar I. Violago.

“We are ready to move forward and have been proactively working with all stakeholders, public and private, to progress this project since 2018. Wawa is the fastest and least expensive water source development and comes at no cost to the government. We are hopeful that the final steps will be taken in the coming days to finally deliver a project of critical importance to the residents of Metro Manila,” Mr. Razon said in a statement.

“Curiously the government seems to be desperate for new water sources, yet MWSS continues to drag its feet.”

Prime Infra said that in the past seven months, Manila Water Co., Inc. had entered into a memorandum of understanding with Mr. Razon’s group for the development of the Wawa bulk water supply project, which is supposed to be a new water source for Metro Manila at no cost to the government.

But it said after a series of technical workshops and review by MWSS and the Office of the Government Corporate Counsel, the offtake agreement was signed by MWSS, Manila Water and the joint venture on Aug. 6, 2019.

The agreement was followed by a series of public consultations in Manila Water’s east zone concession from Sept. 3 to 9, 2019 led by the MWSS Regulatory Office.

“Project details were presented to the public alongside the tariff impact. The presentation was well received by the public because it was clear that this project is the most efficient and fastest solution to the on-going water crisis. Subsequently, the MWSS board approved the tariff,” Prime Infra said.

It said that while the joint venture continues to move forward with the project on the basis that the August agreement signing was the takeoff point, “at the moment, the MWSS continues to sit on the remaining approvals to finally move the project forward.”

MWSS officials were not immediately available for comment. — Victor V. Saulon

Talks on regional trade pact conclusive — ASEAN chair

BANGKOK — Asian countries held conclusive talks on what could be the world’s biggest trade pact and there will be an announcement of success at a summit in Bangkok, despite doubts raised by India, the Thai hosts said on Monday.

But China, a champion of the Regional Comprehensive Economic Partnership (RCEP), said 15 members had agreed to move ahead without India, while leaving the door open for it to join a deal that has been given new impetus by the United States-China trade war.

Despite a message of support from US President Donald Trump to the Association of Southeast Asian Nations (ASEAN), regional countries noted that Washington had downgraded its delegation for the annual Asian gathering.

Southeast Asian countries hoped to announce at least provisional agreement on the 16-nation trade bloc, which would account for a third of global gross domestic product and nearly half the world’s population.

But demands raised recently by India meant negotiations among ministers went late into the night. The bloc includes the 10 ASEAN members plus China, South Korea, Japan, India, Australia and New Zealand.

Thai Commerce Minister Jurin Laksanawisit told reporters that the 16 countries had reached agreement and would make a statement later on Monday — while acknowledging that some details still needed to be sorted out.

He said the plan was to sign the deal next year, under Vietnam’s chairmanship of ASEAN.

But Chinese Vice-Foreign Minister Le Yucheng said 15 countries had decided to move ahead first.

“The text based negotiations have been completed and issues of market access have been essentially concluded,” he said.

“Whenever India is ready they are welcome to come on board.”

An Indian official with close knowledge of talks said not everything had been resolved and discussions were still going on.

New impetus to complete the deal has come from the Sino-US trade war, which has knocked regional growth, but India fears a potential flood of Chinese imports and officials with knowledge of the negotiations said India had raised late demands.

One advantage for Southeast Asian countries of including relative heavyweight India in the trade pact would be less domination by China.

Diplomatic and security calculations in Southeast Asia have shifted under the Trump administration.

And the US decision to send a lower level delegation to the back-to-back East Asian Summit and US-ASEAN Summit this year has raised regional concerns that it can no longer be relied on as a counterweight to China’s increasing might.

Because of the downgrade in the US delegation, officials from only three of the 10 regional countries joined the usual US-ASEAN meeting.

US Commerce Secretary Wilbur Ross told a business meeting on the sidelines of the summit that the administration of US President Donald Trump was “extremely engaged and fully committed” to the region.

DOUBTS
White House national security adviser Robert O’Brien brought a personal message from Mr. Trump offering to host a meeting of Southeast Asian leaders in the United States.

He also condemned Chinese “intimidation” in the South China Sea, where several regional states reject China’s sweeping maritime claims and complain that Beijing is illegally stopping them from exploiting their energy resources and fishing grounds.

But diplomats and analysts said the message from Washington was clear.

“Doubts have been raised in a more serious way about the Trump administration engaging and this may also play into the hands of other superpowers in pushing their own agendas,” said Panitan Wattanayagorn, a former Thai national security adviser.

In a statement as this year’s ASEAN chairman on the group’s 35th summit, Thailand said leaders of the region “welcomed the conclusion of the Regional Comprehensive Economic Partnership (RCEP) negotiations and the commitment to sign the RCEP Agreement in 2020,” adding that this development “will significantly contribute to an open, inclusive and rules-based international trading system and expansion of value chains.”

On the South China Sea, the group “reaffirmed the importance of the full and effective implementation of the 2002 Declaration on the Conduct of Parties in the South China Sea in its entirety” and noted “progress of the substantive negotiations towards the early conclusion of an effective and substantive Code of Conduct (CoC) in the South China Sea within a mutually agreed timeline,” citing “completion of the first reading of the Single Draft CoC Negotiating Text in July 2019.”

Beijing had proposed a three-year timetable to conclude CoC talks.

At the same time — though without naming China — the group also “discussed the matters relating to the South China Sea and took note of some concerns on the land reclamations and activities in the area which have eroded trust and confidence, increased tensions and may undermine peace, security and stability in the region.”

Despite the maritime row, ASEAN and Beijing have been working on various avenues for cooperation.

At the end of the 22nd ASEAN-China Summit in Bangkok on Nov. 3, a separate statement by Thailand as chair of the group said that the ASEAN and China have agreed to develop a new Plan of Action for stronger cooperation for on peace and prosperity for 2021-2025.

“We looked forward to the development of a new Plan of Action (2021-2025) as a guiding document to further strengthen ASEAN-China cooperation in areas of mutual interest,” the statement read in part. — Reuters with reports from C. A. Tadalan and G. M. Cortez

SM Prime books higher income as residential business expands

SM PRIME Holdings, Inc. posted a double-digit growth in its net income during the third quarter driven by the expansion of its residential business across the country.

The listed property developer said it booked a net income of P8.3 billion during the July to September period, jumping 22% from what it recorded in the year prior. Its revenues also grew 13% to P27.98 billion in the three-month period.

For the nine months to September, SM Prime’s consolidated net income rose 18% to P27.6 billion, as consolidated revenues increased 14% to P85.03 billion.

Much of the growth of the company came from its residential business segment led by SM Development Corp. (SMDC), which added P31.92 billion in revenues during the nine-month period to climb 26% from last year.

The company traced the improvement to its new projects in Pampanga, Cavite, Quezon City, Rizal and Parañaque City and to the fast take-up of its ready-for-occupancy projects located within the Mall of Asia complex in Pasay City and the central business district of Makati City.

Reservation sales during the period increased 26% to P66.42 billion, coming mostly from SMDC’s developments in Quezon City, Pasay City, Davao City and Iloilo City.

SM Prime’s mall business likewise delivered better performance in the first three quarters, recording a revenue of P42.03 billion to increase 8% from a year ago. SM Prime ended the period with 81 malls all over the world, 74 of which are located in the Philippines and seven are in China.

Ticket sales from cinemas and events during the nine-month period rose 6% to P4.14 billion, as other mall revenues jumped 17% to P2.75 billion. Mall operating income also climbed 9% to P23.95 billion as same-mall sales growth was sustained at 7%.

Other businesses, which include Commercial Properties Group and SM Hotels and Convention Centers, recorded a revenue improvement of 11% to P6.83 billion during the nine months.

“SM Prime’s recent developments and expansion programs in various progressive cities in the Philippines have contributed significantly to the Company’s strong performance in the first nine months of 2019,” SM Prime President Jeffrey C. Lim was quoted as saying in the statement.

“Our core businesses, led by the malls and residential segments, are set to sustain the strong performance as we approach the fourth quarter of the year,” he added.

SM Prime is allocating P80 billion for capital expenditures this year, of which 39% is intended for mall expansion efforts mostly in the provinces.

Shares in SM Prime increased 50 centavos or 1.28% to close at P39.50 apiece on Monday. — Denise A. Valdez

AC Energy to acquire PINAI stake in Pagudpud wind farm operator

By Victor V. Saulon, Sub-Editor

AC ENERGY Philippines, Inc. is buying the stake of an equity investment fund in their 81-megawatt (MW) wind farm in Pagudpud, Ilocos Norte, the listed company told the stock exchange on Monday.

In a disclosure, it said the company’s executive committee at its meeting yesterday authorized the signing of a share purchase agreement with the Philippine Investment Alliance for Infrastructure (PINAI) for the Ayala-led energy company to acquire PINAI’s ownership interest in North Luzon Renewables Energy Corp.

“PINAI, a fund composed of Macquarie Infrastructure Holdings (Philippines) Pte. Limited, Langoer Investments Holding B.V. and the Government Service Insurance System, effectively has a 31% preferred equity ownership and 15% common equity ownership in North Luzon Renewables,” AC Energy Philippines said.

North Luzon Renewables owns and operates the wind farm, which started its commercial operations in November 2014.

“The acquisition is subject to definitive documentation and approval by the Philippine Competition Commission,” AC Energy Philippines said. It did not immediately respond when asked about the company’s resulting stake in North Luzon Renewables after the PINAI deal.

North Luzon Renewables is a joint venture of AC Energy Philippines parent firm AC Energy, Inc. (ACEI), UPC Philippines, Luzon Wind Energy Holdings, which is an affiliate of Mitsubishi Corp., and PINAI.

Based on its website, ACEI stated its economic stake in the project at 36%. It also says that the wind farm uses 27 units of Siemens SWT-3.0-101 wind turbines, where each turbine has an installed capacity of 3 MW.

The share purchase agreement comes after the board of AC Energy Philippines on Oct. 14 approved the increase in the company’s authorized capital stock to P24.4 billion. It is issuing 6,185,182,288 shares to ACEI out of the increase in its capital stock in exchange for property needed by it for corporate purposes.

The property consists of shares of stock owned by ACEI in select subsidiaries and affiliates in the Philippines as approved by the board on Oct. 9, 2019.

In exchange for the shares valued at P2.37 per share, ACEI has agreed to assign to the Phinma Energy Corp. — the former name of AC Energy Philippines — its shares in the following subsidiaries: AC Energy Development, Inc., Monte Solar Energy, Inc., Ingrid Power Holdings, Inc., South Luzon Thermal Energy Corp., Philippine Wind Holdings, Inc., ACTA Power Corp., Moorland Philippines Holdings, Inc., Manapla Sun Power Development Corp., Viage Corp., and NorthWind Power Development Corp.

On Monday, shares in AC Energy Philippines were unchanged at P2.79 each.

The Final Pitch focuses on real estate for its 5th season

BUSINESS reality show The Final Pitch launches its 5th season with the theme, “Real Estate and Livable Cities,” a marked departure from its usual theme-less seasons where assorted start-ups pitch their way to a probable investment.

This time, the show will feature landowners and entrepreneurs who will “pitch their properties and businesses to a panel of investor-judges who are looking to own a piece of their properties or companies,” according to a press release.

“For the first time ever, we will be producing a season with a theme. [The 5th season] will be the first season focused on real estate projects, urban solutions, and property technologies that contribute to the livability and sustainability of our cities,” John Aguilar, President and CEO of Streetpark Productions, said in a release.

Mr. Aguilar also hosts the program.

The theme, he said during a press conference on Oct. 30 at the Hexagon Lounge in Makati City, has them returning to their roots as Mr. Aguilar also produced Philippine Realty TV, a real estate TV show which recently concluded its 17th season.

For this season, the show will have five investor-judges: Victor Consunji, CEO of Victor Consunji Development Corp.; Cary Lagdameo, first vice-president of Davao-based Damosa Land Inc.; Cesar Wee Jr., President of Wee Community Developers Inc.; Jet Yu, founder and CEO of Prime Philippines, a real-estate consultancy firm; and George Royeca, chief transport advocate of motorcycle-hailing service, Angkas.

Mr. Yu had previously been an investor-judge in the show’s 2nd season.

Aside from the judges, the show has also tapped two mentors to guide the finalists in the different aspects of their business proposals: Amor Maclang, public engagement head of the Urban Land Institute and co-founder of GeiserMaclang Marketing Communications Inc., and Hardy Lipana, President and CEO of Conveyance Realty Services Inc.

LOOKING FOR PITCHES
The Final Pitch Season 5 will start filming in November and will begin airing in early 2020. The show is currently looking for pitches from property owners or their representatives or business owner who may have solutions to make cities in the Philippines more liveable.

“Whether for sale or joint venture, we are looking for properties across the Philippines ranging from raw land, buildings, islands, even prime properties in the metro,” Mr. Aguilar said.

He added that their main criteria to even consider an application is that the land title should be clear and free of encumbrances.

“Properties or projects with an existing prospectus or highest and best land-use study are preferred but not required,” Mr. Aguilar said, before noting that if the plot of land is for sale, it should be “at least 20% below market value, otherwise we won’t even consider it.”

For businesses that want to pitch, they have to have technology or solutions “that make for livable cities — green and sustainable building materials and technologies, clean energy, smart homes, and property technology start-ups,” said the release.

Businesses that provide solutions that improve people’s quality of living “particularly those that address safety, hygiene, healthcare, the environment, recreation, public transport, and access to goods and services will also be considered,” the release added.

Entrepreneurs must have at least a minimum viable product or prototype to even be considered.

BEYOND FIVE SEASONS
The Final Pitch may have five seasons under its belt but Mr. Aguilar said during the press conference that they are planning to make the show regional and eventually global.

“I feel that this show is something that is going to scale not just around the region but globally,” he said.

This year, according to Monica Hipolito-Aguilar, co-executive producer of the show, they will be pitching the show to different countries in Southeast Asia as they plan to have a season next year which will have regional investor-judges and contestants from around the region.

Those who are interested in joining the show may log-on to thefinalpitch.ph/application. Deadline for submission of entries is on Nov. 11. — Zsarlene B. Chua

PLDT gets $1M training grant from USTDA

By Cathy Rose A. Garcia, Associate Editor

BANGKOK — The US Trade and Development Agency (USTDA) is supporting PLDT, Inc.’s preparations for the rollout of its fifth generation (5G) network by providing the telecommunications giant with a $1-million (around P50.5 million) training grant.

The USTDA Acting Deputy Director Todd Abrajano and PLDT Vice President and Head of Core Planning Arvin L. Siena signed the letter of intent at the sidelines of the Indo-Pacific Business Forum here on Monday.

The foreign assistance agency of the US government agreed to provide a $1 million training grant “to support training and capacity building for PLDT’s technical and managerial staff to support the company’s deployment of next-generation digital technologies.”

The training grant comes as PLDT and its wireless unit Smart Communications are in the midst of efforts to deploy a 5G network in the country.

In April, PLDT signed a deal with US technology provider Cisco Systems, Inc. for the digital transformation of its IP transport infrastructure, which will support the 5G network.

“This (training grant) will enable PLDT to utilize cutting-edge technologies that Cisco will deploy that would transform the company’s network into 5G network-ready infrastructure. We are pleased to support PLDT with this $1-million grant agreement, and look forward to working with them to ensure its success,” Mr. Abrajano said during the signing event.

PLDT is targeting to launch the rollout of its 5G network by 2020.

“A vital part of that undertaking is the task of transforming our fiber optic transport network into a 5G ready infrastructure. We have tapped Cisco to provide that leading edge technology to execute that transformation. But it is not just the network we need to transform, we also need to transform our people and our organization with new competency and skills,” Mr. Siena said.

US Ambassador to the Philippines Sung Kim, who witnessed the signing of the USTDA-PLDT deal, said “this is more than just benefiting PLDT but also has implications for the country in as much as connectivity is a key part of the economic growth and development.”

The telecommunications giant has yet to decide on vendors for the network hardware, telecommunications equipment and other products and services for its 5G network. PLDT Chairman and President Manuel V. Pangilinan said in July it was choosing among Cisco, China’s Huawei Technologies Co., Ltd. and ZTE Corp.; Sweden’s Ericsson, Inc.; and Finland’s Nokia Corp.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

Olivia Newton-John’s Grease outfit sells for $405,700

LOS ANGELES — Olivia Newton-John’s tight black pants and leather jacket from the movie Grease sold for $405,700 at a Beverly Hills auction on Saturday, more than double the expected price, Julien’s Auctions said.

The outfit that marked the transition of Newton-John’s character in the 1978 musical from demure high schooler to sexy Sandy was among 500 items for sale to help raise money for the performer’s cancer treatment center in Australia.

The infamous pants worn by Newton-John for the “You’re the One That I Want” duet with John Travolta were so tight that she had to be sewn into them to film the scene, and were sold with a broken zipper. The buyers for the pants and jacket were not revealed.

The auction raised $2.4 million in total, with many items related to the movie going for many times over estimates, Julien’s said.

A Grease poster signed by Newton-John, Travolta and other cast members sold for $64,000, compared to an estimate of $1,000. The pink lace gown the actress wore to the movie premiere in Los Angeles went for $18,750. A custom Pink Ladies jacket given to the actress by the cast and crew fetched $50,000, 25 times its original estimate.

The British-born, Australian-raised 71-year-old singer and actress said earlier this year that she was battling breast cancer for a third time since first being diagnosed in 1992.

After her first bout with cancer, she helped set up the Olivia Newton-John Cancer and Wellness Center in Melbourne, which aims to support the mind as well as the body.

All of the proceeds from the Grease jacket and pants will benefit the center, as well as a portion of all the other items sold on Saturday. — Reuters

Cebu Pacific to purchase 16 Airbus aircraft for $4.8B

CEBU AIR, Inc. has signed a purchase deal with Airbus SAS for 16 new aircraft.

CEBU AIR, Inc., the listed operator of the Philippines’ largest budget carrier Cebu Pacific, has signed a purchase deal with plane manufacturer Airbus SAS for 16 passenger aircraft worth a total of $4.8 billion.

In a disclosure to the stock exchange on Monday, Cebu Air said it signed a purchase agreement with Airbus SAS for the order of 16 A330-900 aircraft currently valued at $4.8 billion.

It said the aircraft have up to 460 seats in a single-class configuration.

“The order firms up the wide-body portion of a previously announced Memorandum of Understanding (MoU), which also includes commitments for ten A321XLR and five A320neo single-aisle aircraft,” it added.

Cebu Pacific said the aircraft offer a 25% reduction in fuel consumption compared with older generation competing passenger planes, and an extended range capability of up to 8,000 nautical miles or 15,000 kilometers.

“The A330neo is integral to our fleet modernization program. With this purchase, we aim to reduce our fuel emission and build a more sustainable operation. This will also give us the lowest cost per seat, at the same time enabling CEB to increase seat capacity and maximize valuable airport slots in Manila and other Asian megacities,” Cebu Pacific President and Chief Executive Officer Lance Y. Gokongwei was quoted as saying.

For his part, Airbus Chief Commercial Officer Christian Scherer said: “Cebu Pacific is a pace-setter and surely one of the most respected and well managed airlines in the low-cost sector. This new order is another important endorsement for the value-based proposition that the A330neo brings to highly competitive markets. The increased capacity version of the aircraft developed for Cebu Pacific will help achieve even greater efficiencies for high density regional and long range routes.”

Mr. Gokongwei said earlier this year that the budget carrier would be investing heavily on the acquisition of new planes as it looks to recover “lost market share” over the past two years.

Based on data from the Civil Aeronautics Board, Cebu Pacific and Cebgo had a combined passenger traffic of 13.95 million in 2018, or 51% of the total 27.28 million of all local carriers.

In 2017, the two Gokongwei-led carriers had a combined traffic of 13.72 million domestic passengers, or 55% of the market total. In 2016, Cebu Pacific and Cebgo held 57% of the domestic passenger market at 13.46 million. — Arjay L. Balinbin

Getting into GOT7

By Cecille Santillan-Visto

Concert Review
GOT7 Keep Spinning 2019 World Tour
Oct. 26
Mall of Asia Arena, Parañaque

WHEN GOT7 visited Manila for the first time in December 2014, the group was still “newly minted,” having been launched only a few months earlier by JYP Entertainment.

They have since returned for two more fan meetings, both of which did relatively well in terms of attendance. Fast forward to five years, four studio albums, and two world tours later — GOT7 was far from the nervous and less-than-confident Korean pop singers who graced the SMX Convention Center to introduce themselves to Filipino fans at the Philippine K-Pop Convention 6.

With their infectious charm and charisma known to K-Pop fans around the world, JB, Jinyoung, Youngjae, Yugyeom, Mark, Bambam, and Jackson easily filled up the Mall of Asia Arena and definitely did not disappoint. They delivered a full-packed, three-hour concert that left their Philippine Ahgases (their local fandom) clamoring for more.

“Walang uuwi, walang uuwi! (No one goes home!)” fans chanted, which prompted the boys to reciprocate the overwhelming reception.

“Babalik kami. Mahal namin kayo (We will return. We love you),” said Jinyoung. To this, Youngjae added: “Maraming salamat sa pagpunta nyo ngayon. Magkita tayong muli sa susunod (Thank you for coming. We will see you again next time).”

GOT7 is among the first multinational K-idol groups to reap worldwide success. Jackson is from Hong Kong, Bambam is Thai, while Mark is of Taiwanese-American origins. With their confident English skills coupled with their endearing attempts to speak in Filipino, including the catchphrase “Sana all,” it was no wonder that 27-song repertoire, several VCRs, and numerous set fillers went by like a breeze.

Keep Spinning was their first full concert in Manila, which sold out within eight hours from the opening of the box office. The fans who managed to secure tickets definitely got their money’s worth as the set list was arranged to highlight the songs from their latest album, Spinning Top: Between Security & Insecurity, with a mix of some oldies but goodies. Weaved with new chart-toppers “Eclipse,” “1 Degree,” and “Page” were some fan favorites like “Girls Girls Girls,” “Hard Carry,” “Skyway,” “Just Right,” and “Stop Stop It.”

The unit stages were also well-applauded, including the trio of Bambam, Jackson, and Mark, who joined forces in “God Has Returned” and “Mañana.”

Not to be outdone, Jinyoung and Yugyeom had their own dance showdown, while JB sang “Solo” and Youngjae owned the stage with “Gravity.”

Pulp Live World went the extra mile in set and lightning design, not only extending the stage to get the artists closer to the audience, but adding a hydraulic-controlled elevated second stage. The LED screens enhanced the concert experience, particularly in “Thank You” where all seven members were stunningly projected on all five massive panels.

One of the highlights of the concert was when they sang “Miracle,” and the fans chanted along while waving their lit mobile phones and banners especially prepared for the show. GOT7’s followers also surprised the group with a well-made three-minute video that had the members impressed.

“We have never seen such a video prepared for us in a long time,” said Bambam.

A bit of a downside was the interpreter who may not have been able to accurately translate what the Korean-speaking members were saying. But this did not make the concert any less enjoyable although there may be room for improvement in future K-Pop events.

While many idol groups have been rocked by controversies, GOT7 remains solid.

The secret perhaps is the obvious camaraderie and the fun they have while performing. And, yes, let’s not forget the one-of-a-kind fan service. It was a lucky day for a male fan at the VIP standing area when Mark gave him his jacket. Jackson, meanwhile, teased the audience that “walang uuwi” will be their comeback song. In between, GOT7 doused the audience with bottles of mineral water and even threw some towels — soaked with their sweat — as souvenirs.

GOT7 just launched a new album yesterday, which they heavily promoted during the Manila concert. As they expect to spend considerable time to market the new release, the Philippine leg of Keep Spinning was their last concert for the year.

Many Filipino fans were mere disinterested onlookers when GOT7 first came here in 2014. When they shot to fame, K-Pop fans readily got into GOT7. They have not looked back since.

Pryce earnings up 8% on LPG sales

PRYCE CORP. reported an 8.01% increase in its consolidated net income in the nine months to September to P1.204 billion largely because of the growth in its sales of liquefied petroleum gas (LPG), the listed company said on Monday.

Revenues during the period rose by 4.18% to P7.887 billion, the company said in a disclosure. The company did not release its income and revenue figures for the third quarter alone.

“The above growth in revenues was achieved mainly due to a 9.0% growth in sales of LPG content, the company’s principal source of revenues,” the listed company told the stock exchange.

Sales volume of LPG content rose to 162,560 metric tons in 2019 from 149,160 metric tons in 2018.

“The completion of certain refilling plants and the increase in bulk sales in the Vis-Min areas contributed to the said rise in sales volume,” the company said.

During the nine-month period, the average LPG contract price dropped by 18.85% to $439 per metric tons from $541 per metric ton in the same period last year.

Pryce said its LPG sales revenues, which include sales of LPG content, cylinders, LPG generators, and LPG stoves and accessories, accounted for the bulk of its revenues at 93.64% in 2019, equivalent to P7.386 billion.

Revenues from other product lines such as industrial gases, real estate, and pharmaceutical products contributed P501.43 million or 6.36% of total revenues.

Sales of industrial gases rose by 6.68% to P341.46 million from P320.08 million, while those of pharmaceutical products climbed by 18.01% to P37.32 million from P31.62 million.

“Although a modest contributor to total revenues, this pharmaceutical business of the company has consistently grown in terms of revenues and income over the past recent years,” Pryce said.

The company said it was optimistic of meeting its 2019 projected net income of P1.6 billion “plus or minus 10%.”

“The last quarter is usually the strongest in terms of LPG sales and income for the company because of the December festivities/holidays. In addition, incremental LPG volume is starting to be generated from the expansions of the company’s refilling plants and sales centers,” it said.

On Monday, shares in Pryce rose by 1.85% to P5.50 each. — Victor V. Saulon

Gov’t makes partial award of T-bills as rates rise

THE GOVERNMENT made a partial award of the Treasury bills (T-bill) it auctioned off yesterday as rates of the shorter tenors increased despite the recently implemented cut in banks’ reserve ratio and expectations of easing inflation.

The Bureau of the Treasury (BTr) just raised P9.8 billion out of its P20-billion program on Monday, even as its offer attracted bids worth P36.5 billion.

The BTr rejected all bids for the 91-day papers even as it attracted P8.82 billion in tenders, above the P8-billion program.

Had the Treasury made a full award of the papers, they would have fetched an average rate of 3.281% or 28.6 basis points (bp) higher than the 2.995% fetched during the auction last Oct. 21.

For the 182-day T-bills, the government raised just P3.8 billion out of total bids of P9.85 billion as the securities fetched an average rate of 3.198%, 2.4 bps higher than the 3.174% quoted in the previous auction.

As for the one-year securities, the Treasury awarded P6 billion as planned at an average rate of 3.513%, 6.3 bps lower than the 3.576% fetched previously.

At the secondary market, the three-month, six-month and one-year papers were quoted at 3.177%, 3.344% and 3.601%, respectively, on Monday, according to the PHP Bloomberg Valuation Service Reference Rates.

National Treasurer Rosalia V. De Leon said the government rejected all the bids for the three-month papers as rates jumped despite an expected decline in inflation last month.

Inflation likely slowed further in October as a continued easing of prices of rice and fuel offset any upside pressure from pork substitutes amid the onslaught of African swine fever, according to a BusinessWorld poll of 14 economists conducted late last week.

The analysts also noted that base effects from the nine-year-high 6.7% headline inflation recorded in September and sustained in October last year also pushed inflation lower last month.

At the same time, they expect price pressures to pick up in this year’s remaining two months as base effects subside and consumption picks up ahead of Christmas.

Last week’s poll bared an estimate median of 0.8% for October inflation that, if realized, would mark October as the fifth consecutive month of cooling inflation, the second month that the pace clocked in below one percent, and the slowest clip in nearly three-and-a-half years or since April 2016’s 0.7%.

It is also within the lower half of the 0.5-1.3% October estimate which the Bangko Sentral ng Pilipinas (BSP) Department of Economic Research gave on Thursday last week.

The Philippine Statistics Authority is scheduled to report October inflation data on Nov. 5.

Ms. De Leon said despite strong liquidity, there might be “competing supply” in the market as banks issue more bonds and with the market looking for higher rates and preferring longer tenors instead.

“I guess also there are competing supply in the market with additional issuance from the corporates and the bank bonds that are coming up even with the flush in liquidity coming from the [reserve requirement ratio (RRR)] cut for this month and another cut coming in December. I think, still, the market is looking for higher yields so they are going for longer tenors,” Ms. De Leon told reporters after the auction.

Ms. De Leon added that rates for the longer T-bill tenors ended mixed as the market reacted to the RRR cuts this month and in December.

The reserve ratio of universal and commercial banks now stands at 15% following the effectivity of the 100-bp cut in RRR announced in September. Likewise, the RRR of thrift banks is now at five percent, while that for rural banks stands at three percent.

The BSP announced last month that the reserve ratio of universal, commercial and thrift banks will be slashed by another 100 bps effective December, bringing total reductions to their reserve ratios for this year to 400 bps. This cut will also apply to the reserve ratio of non-bank financial institutions with quasi-banking functions (NBQBs).

This will bring the reserve ratio of universal and commercial lenders to 14% by December, while the RRR of thrift banks will stand at four percent.

On the other hand, the reserve ratio of NBQBs will be cut to 14% next month.

Meanwhile, The bond trader interviewed by phone yesterday said the auction result for the one-year tenor was “in line with market expectations,” adding that the market wanted higher rates for the 91-day T-bills since the supply is enough.

“The total issue size on the 91-day T-bills were too big, P8 billion compared to 182-day and one-year. There’s already enough supply in the 91-day — that’s why they prefer higher rates. Since 2019 will be ending soon, we just have to accept the current schedule of BTr,” the bond trader explained in a mix of Filipino and English.

Ms. De Leon said the BTr will maintain its borrowing program for the quarter despite its recent rejections on bids and partial awards.

“For next week, the bond offering would be 10 years so there would be longer tenors. The succeeding issuance will be 20 years…which will be in time for the redemption that’s about P190 billion for this month,” she said.

The government is set to borrow P220 billion from the local market this quarter, broken down into P100 billion in T-bills and P120 billion via Treasury bonds. — BML

City & Land tops off Taft condominium

CITY & LAND Developers, Inc. has topped off its latest condominium project in Taft Avenue last week, three years since it was launched in 2016.

The listed subsidiary of Cityland Development Corp. (CDC) said in a statement yesterday it held a topping off ceremony for its One Taft Residences project last Oct. 28.

The 40-storey building is the newest project of City & Land following the topping off of CDC’s One Premier project in Alabang in September.

The company said the location of One Taft Residences, which lies a few steps away from the university belt, makes it a prime spot with heavy foot traffic. It is accessible to transportation hubs, shopping centers and commercial and government offices.

Residential units of the property are offered in studio, one-bedroom and two-bedroom cuts with sizes ranging from 19.55 square meters to 60.76 square meters.

City & Land is one of the two subsidiaries of CDC, the other being pre-need company Cityplans, Inc.

The Cityland group operates various residential and commercial developments across the country, of which five are under City & Land, namely: North Residences in Quezon City, Grand Emerald Tower in Pasig City and Manila Residences Bocobo, The Pacific Regency and One Taft Residences all in Manila.

City & Land booked an attributable net income of P75.02 million in the six months to June, up 18% from last year on the back of a 15% rise in revenues to P306.86 million.

The attributable net income of its parent CDC stood at P346.7 million during the period, soaring 44% as revenues increased 22% to P1.25 billion.

Shares in CDC traded flat on Monday, closing at 87 centavos apiece. — Denise A. Valdez

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