How PSEi member stocks performed — July 20, 2018
Here’s a quick glance at how PSEi stocks fared on Friday, July 20, 2018.
PEZA told not to blame TRAIN 2 for weak investment
THE Department of Trade and Industry (DTI) said the Philippine Economic Zone Authority (PEZA) needs to stop blaming the second phase of the Tax Reform for Acceleration and Inclusion law (TRAIN 2) for the decline in its investment pledges.
Trade Secretary Ramon M. Lopez said other investment promotion agencies (IPAs) are posting annual increases in their project registrations, adding he does not know why PEZA’s totals have registered a downward trend.
“The question is, why are PEZA’s totals lower while those of BoI [Board of Investment] are higher. And other IPAs, even CEZA [Cagayan Economic Zone Authority] are showing increases,” he told reporters last week in Pasay City.
Ahead of the official data release, Mr. Lopez said the BoI’s six months to June investment pledges rose nearly 28% year-on-year.
PEZA’s new projects over the same period dropped 55.86% year-on-year to P53.067 billion. The number of projects also fell to 258 from 300 a year earlier with all industry-sector segments posting declines.
PEZA has blamed the drop on foreign investor apprehension over TRAIN 2, which hopes to rationalize investment incentives, including the replacement of the 5% gross income earned (GIE) tax incentive, in lieu of all local taxes, with a phased reduction of the corporate income tax rate.
“These foreign investors go to countries where incentives are time-bound,” Mr. Lopez said, adding that the only uncertainty he sees in TRAIN 2 is the transition period for current investors to adapt to the new regime.
“That’s the only uncertainty for PEZA locators. That alone. There should be no problem. So it is wrong to blame TRAIN 2 for the uncertainty. There must be something else that wasn’t there before,” Mr. Lopez added, citing trade tensions because PEZA locators are export-oriented.
As such, Mr. Lopez said he will take the lead in presenting the country’s investment climate to foreign businessmen.
“More clarity is needed for investors. I also don’t know what’s being presented. We have to see what the presentations are saying. That’s why I’d like to get more involved in the way things are being presented,” Mr. Lopez said.
“I’ll be talking also to potential PEZA investors. Whatever Plaza is saying about uncertainty, that’s her statement. We’d like to validate that,” he added, referring to PEZA Director-General Charito B. Plaza.
Regarding PEZA’s plan to become a government-owned and controlled corporation (GOCC) and leave the DTI for the Office of the President, Mr. Lopez said: “Nope. That cannot happen. They’re an investment promotion agency and part of their mission is industrial development.”
PEZA said it is seeking GOCC status as part of a proposal to amend the 23-year-old Republic Act 7916 or the Special Economic Zone Act of 1995.
PEZA said that as a GOCC, it will be “fully independent,” amid plans under TRAIN 2 to centralize investment promotion functions under a Fiscal Incentives Review Board (FIRB). — Janina C. Lim
Senate panel considering microgrids for rural power
THE SENATE energy committee is studying a plan to use the annual budget for rural electrification of nearly P5 billion to build microgrids to speed up the delivery of electricity in remote areas, its chairman said.
“By our computation, every year we allocate about close to P4 [billion], almost P5 billion in sitio and rural electrification. We plan to re-channel that to a microgrid project instead, because rural electrification is never completed,” Senator Sherwin T. Gatchalian told reporters after a recent energy forum.
He said one of the policies that he was looking at to promote microgrids — and their smaller version, minigrids — is to provide them with subsidies through the re-channeled funds from missionary electrification, which is collected from all on-grid electricity users.
He said the policy concept would be the subject of a resolution that he is planning to file before the government’s budget season.
A number of companies have previously expressed interest in putting up microgrids, which is a complete system with its own power resources, generation and load centers within a defined boundary.
However, electric cooperatives have criticized these plans, calling them an encroachment on their franchise areas by using total electrification as a guise to expand the private companies’ areas of operation.
Mr. Gatchalian said the National Electrification Administration (NEA), which oversees the electric cooperatives as well as rural electrification, had identified areas that are not provided with 24/7 electricity.
“We will prioritize those areas,” he said.
“Government can step in if the electric coop is not providing 24/7 electricity. And government can step in in two ways,” he said.
“Government can build the microgrid. I think they [government] can empower the local government units to do it, or ask the private sector to come in and build. I prefer the second one.”
He said he prefers the second option, which would not require a capital outlay from the government.
“But they have to open it up to the private sector to build the microgrid,” he said.
He said his committee has yet to study how many microgrids could be built using the electrification funds.
Asked about possible resistance from electric cooperatives, he said these entities should now be putting up microgrids if they intend to energize the unserved or underserved areas.
“But if [they’re] not providing 24/7 [electricity], that’s a failure on their part,” he said, adding that the electric cooperatives’ franchise is a privilege that the government can take back.
“The franchise is a privilege that the government gave you, but if you’re not using that privilege, we will take it back at least in that specific area. And government can step in to build or to ask somebody to build it,” he said.
Data from NEA show that as of May 2018, all cities and municipalities in the country have been energized, but there were barangays and sitios that remained without electricity. The agency placed the number of unserved barangays at 10, and the sitios at 24,496. — Victor V. Saulon
Gov’t fund utilization rate slips to 97.1% in Q2
FUND USAGE by national government agencies declined in the second quarter, the Department of Budget and Management (DBM) said.
The Notice of Cash Allocations (NCA) utilization rate slowed to 97.1% in the three months to June from 98.1% a quarter earlier.
The second-quarter result was better than the year-earlier NCA utilization rate of 94.6%.
The NCA is a quarterly disbursement authority issued by the DBM to government agencies, allowing them to withdraw funds from the Bureau of the Treasury to pay for contracted projects.
Government agencies used P739.54 billion of the P768.19 billion worth of NCA releases, with P28.65 billion left unused — against the P11.91 billion in unutilized NCAs in the first quarter.
In the first half of the year, national government agencies disbursed a total of P1.35 trillion worth of NCAs of the P1.39 trillion the DBM released.
This left a balance of P40.55 billion worth of unused NCAs.
The Commission on Elections and the Office of the Obmudsman logged a 100% utilization ratio in the first six months of the year.
The Department of Foreign Affairs and the Judiciary posted utilization rates of 99.9%; the Autonomous Region in Muslim Mindanao 99.7%; the Department of Public Works and Highways 99.6%; and Department of Interior and Local Government 99.5%.
The National Economic and Development Authority had the lowest NCA utilization rate in the first half at 58.4%, with P1.83 billion worth of NCAs.
It was followed by “other executive offices” with a 67.6% utilization ratio, amounting to P9.34 billion unused NCAs. The DBM had a 78.4% budget utilization rate, leaving P356.64 million unused. — Elijah Joseph C. Tubayan
Debt service payments more than double in May
THE GOVERNMENT’s debt service bill doubled in May, driven by domestic amortization payments, the Bureau of the Treasury (BTr) said.
The national government made payments of P159.1 billion during the month, up 102.96% from a year earlier.
The May total was about six times the total paid out in April.
Of the total payments in May, 86.73%, or P137.99 billion went to principal obligations and P21.11 billion represented interest.
P130.64 billion of the total principal payments went to domestic creditors and P7.35 billion to foreigners.
Meanwhile, P18.63 billion worth of interest payments went to domestic lenders and P2.48 billion to foreign.
In the five months to May, the debt service bill was P385.14 billion, up 9% from a year earlier.
Of the total, P243.7 billion went to principal payments, with P170.21 billion going to domestic lenders, and P73.49 billion to foreign.
A total of P141.45 billion went to interest payments, with P95.08 billion being paid to domestic lenders, and P46.37 billion to foreign.
The government aims to borrow P888.23 billion this year, with 65% sourced domestically. — Elijah Joseph C. Tubayan
DoE seeking comment on renewable energy dev’t zones
THE Department of Energy (DoE) is soliciting comment on a draft circular that will identify “competitive renewable energy zones” (CREZ) to help it direct the country’s power transmission development to areas where potential indigenous resources are located.
In the draft circular, the DoE will define a CREZ process in which it will identify the renewable energy (RE) zones to help in overcoming development obstacles such as transmission constraints and regulatory barriers to financial investment by the private sector.
“[I]n planning for new transmission infrastructure and/or upgrades to existing transmission infrastructure, the [DoE] deems it necessary to ensure the cost-effective delivery of electricity generated in regions with abundant RE resources in order to attain sustainable, stable, secure, sufficient, accessible, and reasonably-priced electricity supply and services,” the department said in the proposed circular.
The DoE said the ideal candidate areas for CREZ are “geographic areas characterized by high-quality, low-cost RE potential in addition to high levels of private-sector developer interest.”
In the selection process, the department will also identify a set of transmission or upgrade scenarios that will enhance the delivery of energy from the candidate RE zones.
The process will include an analysis of the “economic, operational, environmental, and other costs and benefits associated with the required transmission enhancement scenarios.”
It will also specify the cost-effective transmission line enhancements proposed to be included in the transmission development plan, as reviewed and approved by the DoE.
The DoE said the focus of the CREZ analysis is power interconnections in Luzon, Visayas and Mindanao.
Under the circular, the DoE will create a technical advisory committee, which is chaired by the DoE secretary or a designated representative. Its members include directors of some of the department’s bureaus, along with the heads of the National Renewable Energy Board, National Transmission Corp., National Electrification Administration, and National Grid Corp. of the Philippines. — Victor V. Saulon
The latest improvements to the Conceptual Framework
2018 is looking to be a busy year as far as financial reporting changes are concerned. There will be two major new standards adopted this year — one for revenue recognition and another one for financial instruments. Furthermore, it is in 2018 that the International Accounting Standards Board (IASB), the accounting standard-setting body, issued a revised version of the Conceptual Framework for Financial Reporting.
Although the Conceptual Framework is not a standard by itself, and does not override the provisions of any standard, its importance nevertheless cannot be downplayed as it assists the IASB in developing the standards. It also helps the financial statement preparers and users better understand and interpret these standards. In addition, the Conceptual Framework can be used as a reference by preparers who are trying to develop accounting policies but cannot find any applicable standard currently in place.
Prior to these improvements, the last revisions to the Conceptual Framework were issued in 2010. However, the 2010 Conceptual Framework was criticized for various reasons. Some critics pointed out that it lacks clarity, while others said that it excludes certain important concepts and that it does not support the current thinking of the IASB. With these new changes, the IASB aims to underpin the key concepts of the Conceptual Framework with sufficient details, which the IASB can use to develop standards while at the same time, help others better interpret and apply the standards.
The revisions include several new concepts, provide clarifications on some key concepts and update the definitions and the criteria for recognizing assets and liabilities.
NEW CONCEPTS IN THE REVISED CONCEPTUAL FRAMEWORK
The following are brief descriptions of the new concepts introduced in the revised Conceptual Framework:
• Description of the reporting entity – Although the IASB has admitted that it is not in a position to dictate who is required to prepare financial statements, the revised Conceptual Framework provides general guidance on a reporting entity (i.e., an entity that is either required or has opted to prepare financial statements and is not necessarily a legal entity). Identifying a reporting entity (or its boundary) may be difficult particularly if it is not a legal entity. In such a case, the primary consideration should be the users of the financial statements and what information they need from the reporting entity. Thus, even if the Conceptual Framework does not dictate what entity should prepare financial statements, it does clarify that a reporting entity cannot be arbitrarily identified.
• Measurement – Similar to the 2010 Conceptual Framework, the revised one does not mandate any specific measurement basis. The new framework does, however, identify and describe two measurement bases: the historical cost measurement and the current value measurement (which includes current cost, value in use and fair value), as well as the factors to consider when selecting such basis.
• Presentation and disclosure – This revision reflects the IASB’s intention of ensuring better and more effective communication of financial statement information, since this will make the information more relevant to the financial statement users. The revised Conceptual Framework introduces new concepts and guidance on how information, specifically income and expenses, should be presented and disclosed in the financial statements.
• Derecognition – The revised Conceptual Framework defines derecognition as “the removal of all or part of a recognized asset or liability from an entity’s statement of financial position.” When an entity derecognizes an asset or a liability, the aim is to always faithfully represent which assets or liabilities (or parts thereof) were retained after the transaction that gave rise to derecognition occurred.
UPDATES AND CLARIFICATIONS IN THE REVISED CONCEPTUAL FRAMEWORK
Other than the new concepts, several sections or chapters were also revised that include:
• Definitions of an asset and a liability – Instead of the asset and liability being defined as the ultimate inflow and outflow (respectively) of economic benefits, assets are now considered economic resources while liabilities are now looked on as the “obligation to transfer economic resources.” The phrase ‘expected flow’ was also deleted, emphasizing the fact that assets and liabilities may be recognized even if future inflow or outflow of economic benefits are not certain or even likely. In addition, the IASB also included the criterion “no practical ability to avoid” in the definition of the liability.
• Recognition of assets and liabilities – This is a major change from the 2010 Conceptual Framework. The 2010 version was more focused on recognition based on the probability of future inflows or outflows of economic benefits. The revised version talks about the qualitative side of capturing or recognizing assets, liabilities, income and expenses and emphasizes that recognition of these elements should only be done if they will result in relevant information and faithful representation.
The IASB also reintroduced some concepts to ensure consistency and minimize confusion on their application. One such reintroduced concept is prudence, which is defined as “the exercise of caution when making judgments under conditions of uncertainty.”
Another reintroduced concept is “substance over form”, with the IASB reinstating an explicit reference to the need to “faithfully represent the substance of the phenomena that it purports to represent.” Still another is the concept of stewardship, which was reinstated in recognition of the fact that financial statement users need to assess management’s stewardship over the resources of the entities through the information contained in the financial statements.
Since the revisions are effective immediately for the IASB and its Interpretation Committee or IFRIC, we will start seeing these changes reflected on the IASB’s and IFRIC’s future discussions and projects. Preparers who have developed or will be developing accounting policies based on the Conceptual Framework should consider these changes effective Jan. 1, 2020 and should note that these will be applied retrospectively. While the impact may not be significant or immediately felt by the entities and the preparers of the financial statements, entities should familiarize themselves with these new concepts and revised definitions as these may result in future changes to accounting policies, measurement of assets, liabilities, income and expenses and recognition and derecognition of assets and liabilities.
This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinion expressed above are those of the author and do not necessarily represent the views of SGV & Co.
Dhonabee B. Señeres and Ma. Emilita L. Villanueva are Partners of SGV & Co.
Ateneo narrowly misses Jones Cup podium finish
By Michael Angelo S. Murillo
Senior Reporter
THE quest of the Ateneo Blue Eagles to finish in the top three of the 2018 William Jones Cup fell short on Sunday after they bowed to Iran B on the final day of competition, 70-63.
Needing just a victory to a get a shot at placing on the podium of the annual tournament in Taiwan, the Blue Eagles pushed the Iranians to the limit but just could not complete the task in the end to wind up at fourth place after nine days of competitive basketball.
The Blue Eagles got off to a slow start against Iran, feeling the initial effects of playing anew less than 24 hours since their last game.
They, however, would eventually find their groove, with Matt Nieto, Thirdy Ravena and Isaac Go leading the charge.
Ateneo was just down by a solitary point, 15-14, at the end of the first quarter.
In the second canto, Iran regained some bearing, opening with a 23-18 lead in the early goings.
But the Blue Eagles soared thereafter, going on an 11-0 run to build a 29-23 cushion with four minutes left in the quarter.
Mike Nieto then waxed hot from three-point land to help Ateneo to a 39-31 advantage at the halftime break.
The Iranians exploded to start the third quarter with Vahid Dalirhazan and Rasoul Mozafarivanani finding the mark from beyond the arc.
They opened things with a 10-2 blast to level the count at 41-all with three minutes lapsing in the quarter.
It was a leverage that they would use to move on and complete a turnaround that saw them holding a 54-50 lead heading into the final 10 minutes.
With the outcome of the match still wide open at the beginning of the fourth quarter, both teams jockeyed for position to gain the momentum for the finishing kick.
The score stood at 60-57 with Iran ahead with five minutes left in the contest.
Ateneo tried to claw its way back but Iran would find ways to keep the Blue Eagles at bay as it held on for the victory.
Dalirzahan led Iran with 26 points with Mozafarivanani adding 16 points and eight assists.
Matt Nieto top-scored for Ateneo with 14 points while Ravena added 12.
Kakou Kouame finished with 11 points and 14 boards for the Tab Baldwin-coached Blue Eagles.
3D Global Sports of Canada (7-1), Iran B (7-1) and South Korea (6-1) were expected to finish ahead of Ateneo. South Korea was to play its final game against Chinese Taipei Blue (4-3) later yesterday.
STILL A SUCCESS
Despite falling short of finishing in the top three, Ateneo’s Jones Cup campaign was still a success.
The first full-collegiate team to fly the Philippine colors in the annual tournament, the Blue Eagles had their share of doubters over their ability to compete in Taiwan.
But Ateneo would prove them wrong at the onset, making known that they were out not only to be mere participants in the Jones Cup.
The Blue Eagles opened their bid on July 15 with a huge win over Chinese Taipei White, 87-64.
But they would lose back-to-back to South Korea, 90-73, and 3D Global Sports, 86-78, in their next two assignments.
Undeterred of the early tumble it had, Ateneo responded with four straight victories after, defeating Japan, Indonesia, LSU-Atletas of Lithuania and Chinese Taipei Blue in that order.
The victory over Chinese Taipei Blue, 77-76, on July 21 was fashioned out in dramatic fashion with guard Matt Nieto draining the game-winning three-pointer.
Down, 76-74, with 3.1 seconds left on the clock, Ateneo set up Nieto for the dagger trey off an inbound play to stun the hometown team and crowd and propel itself to a good position to have a podium finish.
The fourth place of Ateneo tied the finish in 2017 of the Philippine team composed of Gilas Pilipinas players like Kiefer Ravena, Christian Standhardinger, Mac Belo, Kevin Ferrer, Roger Pogoy and then Philippine Basketball Association import Mike Myers.
Reigning champ Spieth in 3-way share of Open lead as Tiger roars
CARNOUSTIE — Jordan Spieth is dreaming of retaining the Claret Jug after a standout third round at the British Open on Saturday left him in a share of the overall lead with fellow Americans Xander Schauffele and Kevin Kisner.
The trio were locked together on nine under par at the end of a thrilling day in perfect conditions at Carnoustie, but at least a dozen other players are still right in contention, among them Tiger Woods after he rolled back the years on the Scottish links.
Spieth had started the day at three-under for the tournament, but made his intentions clear with a stunning eagle at the par-4 first hole — the rest of his round featured four birdies and not a single dropped shot for a six-under-par 65.
Now he finds himself primed to follow up his victory at Royal Birkdale 12 months ago and become the first golfer to retain the British Open title since Padraig Harrington a decade ago.
“I feel like my game’s in good shape. It’s progressed nicely. We’ve got pretty much a new tournament tomorrow,” said Spieth, who had popped into Carnoustie town center for a haircut before his round.
Spieth would never admit if that was in order to look smart for the victory photos on Sunday, and in any case he is not getting ahead of himself given how tight the leaderboard is, and that the wind is finally expected to pick up.
“I’m not ahead of myself at all. I just wanted to give myself a chance after the first round (he was at one-over), and I’ve done well over the two days,” he added.
Kisner, with whom Spieth is sharing a house in Scotland this week, had started the day in a share of the lead with Zach Johnson and cemented his strong position with a bogey-free 68.
“Today was the most solid tee to green I’ve played all week,” said Kisner, who has never won a major, although he also led going into the final round of last year’s US PGA Championship before finishing tied for seventh.
Meanwhile Schauffele, at 24 the same age as Spieth, shot a 67 to considerably boost his own chances of a first major victory.
With Kevin Chappell the nearest challenger to the leading trio on seven-under, the prospects of a sixth consecutive major being won by an American are high, but there is still hope for the European contingent.
Italy’s Francesco Molinari had a bogey-free 65 and is six-under, while Sweden’s Alex Noren is at five-under along with Rory McIlroy and Tommy Fleetwood.
The latter two were unable to convert positions of strength, with McIlroy’s 70 featuring four bogeys and Fleetwood having an inconsistent 71.
“We’ll see. The wind is supposed to pick up, so that might be a helping hand,” said Fleetwood of his chances of becoming the first English winner of the Claret Jug since Nick Faldo in 1992.
WOODS ‘LIKE A MYTHICAL CREATURE’
The group on five-under also includes Johnson and Woods, who captivated huge galleries as he shot a 66, arguably his best round in a major for a decade.
Woods even had luck on his side at the 18th, when his drive landed a foot away from the Barry Burn only to bounce away from the water to the relative safety of the long grass — he then salvaged a par after a tremendous approach shot.
“That was good. I played well today. I really did. I hit a lot of good shots. I really didn’t feel like I really made a bad swing until 18,” he said.
Woods is still a huge draw, with his playing partner, South Africa’s Shaun Norris saying it was “like playing with a mythical creature,” and if he can emerge from the pack to win the title on Sunday it would probably be his greatest victory yet.
History shows that almost anything can happen at Carnoustie, where Paul Lawrie won in a playoff in 1999 after starting the day 10 shots back.
Even those in the large group at four-under will still believe in their chances, including England’s Justin Rose, who produced a seven-under-par 64 early in the day.
That equaled the lowest round in an Open at Carnoustie set by Steve Stricker and Richard Green here in 2007. — AFP
San Miguel ousts Alaska to make another finals appearance
By Michael Angelo S. Murillo
Senior Reporter
THE defending champions San Miguel Beermen are once again back in the Philippine Basketball Association Commissioner’s Cup finals after closing out the Alaska Aces in Game Four of their best-of-five semifinal series, 104-99, on Sunday night at the Smart Araneta Coliseum.
Deprived of a chance for a sweep in their previous game, the Beermen made sure not to fall for a second straight time and forced to a sudden death by outlasting the Aces in a tightly fought match.
Knowing the significance of the game, San Miguel and Alaska had it nip-and-tuck to start the contest.
The two teams were knotted at 9-all in the first six minutes of the opening quarter before Alaska outgunned San Miguel, 14-11, the rest of the way to take control of the first 12 minutes, 23-20.
The back and forth continued in the second quarter.
San Miguel built an early cushion only to see Alaska charge back, levelling the count at 41-all at the 1:15 mark.
June Mar Fajardo gave the Beermen a two-point lead after, 43-41, off two free throws.
But Alaska would have the last laugh as the opening half drew to a close after Vic Manuel drained a desperation three-pointer with a second to go to hand back the lead to the Aces, 44-43, at the half.
The Beermen began to flex their muscles to start the third quarter, going on a 14-6 run to build a nine-point lead, 57-48, by the eight-minute mark.
Alaska though narrowed the gap in the next three minutes, 61-59, with import Diamon Simpson making the offense of the Aces humming.
San Miguel eventually survived the Alaska fight back to stay on top after three quarters, 76-69.
Smelling blood, the Beermen opened the final canto with a 4-1 blast to extend their lead to double-digits, 80-70, with 10:08 to go in the game.
Alaska refused to be left behind as guard Simon Enciso rallied the Aces back to within four points, 94-90, with 2:50 left.
But San Miguel was not to budge easily, scoring three points to extend its lead to seven, 97-90, with a minute left.
Mr. Manuel scored for the Aces to cut their deficit to five points, 97-92, only for Alex Cabagnot to frustrate Alaska with a triple that stretched their lead anew to eight points, 100-92, with 34 ticks left.
Alaska made one last run, coming to within three points, 102-99, with four seconds remaining but could not go any closer than that as San Miguel went for the closeout.
Mr. Fajardo finished with 26 points and 12 rebounds to lead the Beermen with import Renaldo Balkman adding 23 points and 16 rebounds of his own.
Mr. Cabagnot had 18 points and nine assists while Chris Ross wound up with 17 points.
Mr. Simpson, meanwhile, paced Alaska with 24 points and 21 rebounds while Mr. Manuel had 20 markers.
Mr. Enciso came off the bench for 19 points and seven assists for the Aces.
“It was not just me. Credit to my teammates for stepping up as well after we had slow start to the game,” said Mr. Fajardo, named co-player of the game along with Mr. Ross, following their victory.
“Good thing we were able to get this win so as not to make it harder for us in a Game Five had Alaska won,” he added.
The Beermen now await the winner of the other semifinal series between the Barangay Ginebra San Miguel Kings and Rain or Shine Elasto Painters. The Kings hold a 2-1 series advantage entering Game Four today at the Smart Araneta Coliseum.
Tiger turns back clock at British Open with battle for Claret Jug wide open
CARNOUSTIE — Tiger Woods chose the third round of the British Open on Saturday to produce one of his best rounds of golf in a decade and climb right into contention on a packed leaderboard at Carnoustie.
The 42-year-old has not won a major since 2008, his career stalling due to personal problems and fitness issues, but there had been a feeling that he could compete for the Claret Jug this weekend and his third-round 66 leaves him in with a chance at five under par overall.
Followed around the Scottish links by huge crowds and a circus of journalists and photographers, the 14-time major winner was at one point in a share of the lead after claiming a sixth birdie of the day at the 14th hole.
He lost some momentum with a bogey at the short 16th but had luck on his side at the last when his drive landed a foot away from the Barry Burn only to bounce away from the water to the relative safety of the long grass — he then salvaged a par after a tremendous approach shot.
“That was good. I played well today. I really did. I hit a lot of good shots. I really didn’t feel like I really made a bad swing until 18,” he said.
“I really felt like I had control of the golf ball today. And on top of that, I made some longer putts, which was nice.”
The problem for Woods is that he is just one of at least 20 players who will consider themselves contenders to dethrone Jordan Spieth, last year’s Open winner at Royal Birkdale.
Indeed, Spieth is right in the mix himself, along with fellow Americans Kevin Kisner and Zach Johnson, who shared the overnight lead on six under par.
They did not go out until 4 p.m. local time (1500 GMT), meaning that the Carnoustie galleries could expect more twists and turns well into a fine summer’s evening on Scotland’s North Sea coast.
Shortly after Woods finished his round, Italy’s Francesco Molinari seized the clubhouse lead on six under par after a superb, bogey-free round of 65.
Molinari is mindful of an expected change in the weather conditions for the last day, with the wind that can be so damaging in these parts finally expected to make its presence felt.
ROSE MAKES HAY
As good as his round was, it was bettered earlier on Saturday by Justin Rose, the Englishman producing his best ever round in a major to appear on the leaderboard.
His seven-under-par 64 equaled the lowest round in an Open at Carnoustie set by Steve Stricker and Richard Green here in 2007 and left him at four-under for the championship.
Rose’s blemish-free effort was capped by birdies at the last two holes, including one after a stunning approach shot onto the 18th green.
It was not quite good enough to trouble Tommy Fleetwood’s overall course record of 63, set last year at the Dunhill Championship, but it allowed him to retain some hope of becoming the first English winner of the Claret Jug since Nick Faldo in 1992.
“I felt like it was a typical setup for a moving day today. So it was nice to make that move,” said the 37-year-old, who only made the cut thanks to a birdie at the last on Friday. — AFP