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The wide awakening

By Cecile Santillan-Visto

Concert Review
Invitation from Nightmare City in Manila
March 24
SM North EDSA Skydome

Insofar as weird concert titles go, Dreamcatcher’s Invitation from Nightmare City is one of the most unusual. A play of words inspired by the K-pop group’s debut album, Nightmare, and the resulting trilogy following the “dream” concept, the concert series was hardly horrific but was a pleasant showcase of the talent of the all-girl band.

Dreamcatcher members JiU, SuA, Siyeon, Handong, Yoohyeon, Dami, and Gahyeon made sure that the audience was wide awake during the entire two-hour show even as the recurring theme of their songs revolved around sleep, dreams, and everything in between.

It was the group’s first visit Manila and their fans, called Insomnias, were given the opportunity to meet them up close through a fan signing prior to the showcase and a high touch session right after.

The R&B-pop-metal band opened strong with “What,” from the Alone in the City album released in 2018, followed by “Sleep-Walking” from the 2017 Prequel, and “Chase Me,” from Nightmare of the same year. The three-song set somehow demonstrated how the group evolved from newbies (they were still known as MINX before their relaunch two years ago) to the experienced act that they are now.

Although it was not a full house, the fans accompanied Dreamcatcher with loud chants, to the visible delight of the group members. They were surprised that the fans knew the lyrics to their Korean songs.

In return, the girls performed “Wonderland,” “Daydream,” “Goodnight,” and “Lullaby” in their next set with much passion and gusto.

They also had unit performances, which allowed the girls to showcase their skills in smaller groups, starting off with SuA and Yoohyeon’s cover of Charlie Puth’s “Attention.”

Not to be outdone, Siyeon, Handong, and Gahyeon dished out Justin Bieber’s “As Long As You Love Me,” with JiU and Dami rounding up the sub-group presentation with their version of “I Don’t Like It, I Love It,” by Flo Rida.

Their English rendition was far from flawless and needs a lot of work, but they should be lauded for the effort put into the covers.

While sassy and all-attitude in most numbers, Dreamcatcher turned playful during the encore where they sang “And There Was No One Left” and “Wake Up.” They sang 18 songs in all.

Dreamcatcher’s Invitation from Nightmare City in Manila was, by far, the simplest K-pop concert staged in Manila. There were no costume changes — the ladies wore the same black-and-white outfits throughout the show. The stage was bare, save for the stage lights, which unfortunately were often too strong and unflattering. LED screens and even pyrotechnics — which are standard in most Korean concerts — were set aside but more likely due to the Skydome’s relatively small size.

To compensate, producer MyMusicTaste moved the stage closer to the audience so that the fans had a better look at the lovely ladies.

A comparison with the Blackpink, another Korean girl group that was in Manila recently, is also inevitable. Although Dreamcatcher does not have the same jaw-dropping effect as Blackpink yet, the band has its own, less jolting style of entertainment, which their fans loved.

Dreamcatcher came to Manila as there was sufficient clamor from Filipino fans to do so. However, at least for this concert, the crowdsourcing concept fell a bit short. Hundreds of fans who requested that the group come over ended up not going to the concert.

But thumbs-up to Dreamcatcher who nonetheless gave 101% for the supporters who managed to attend. As they have clearly demonstrated that they have the chops sufficient to sustain an Asian tour, their next Philippine stop should be able to draw a bigger crowd.

Energy dep’t issues draft storage rules to support renewables

THE DEPARTMENT of Energy (DoE) has released a draft circular covering the regulation and operation of energy storage systems (ESS) after proponents of the technology raised concerns about the lack of a governing policy framework.

In its draft rules, the DoE said among the reasons for drafting the circular is the continued load dropping in the Visayas power grid because of the intermittency of the operations of variable renewable energy generating plants in the area.

It said the experience in the Visayas resulted in the recognition of energy storage systems as a technology to manage intermittent operations of the variable RE plants’ output, thus ensuring system stability.

The agency also said the circular recognizes that some forms of ESS contain chemicals that are potentially harmful to human life and the environment.

“The recycling and proper disposal of ESS facilities and components shall be under the responsibility of the ESS proponent,” it said.

It said ESS will be one of the key elements in the proposed smart grid roadmap, which the DoE is promulgating to guide the power industry in implementing initiatives to modernize the power system.

It said in other jurisdictions, ESS technologies are applied to serve a variety of functions in the generation, transmission and distribution of electric energy.

The draft circular applies to power industry participants, including power generation companies owning and/or operating ESS.

The covered technologies include battery energy storage system; compressed air energy storage; flywheel energy storage; pumped-storage hydropower; and other emerging technologies that may be identified, qualified, and approved by the DoE as ESS.

The rules are also applicable to customers and end-users owning and/or operating ESS, which include distribution utilities; and directly connected customers.

The circular also applies to qualified third parties; transmission network providers; system operators; market operators; and Philippine Electricity Market Corp.

The DoE is requesting interested parties to submit their comments on the draft department circular by April 5, 2019. It issued the draft on April 1.

On the same day, the DoE announced another international roadshow for its Philippine Conventional Energy Contracting Program (PCECP). It will kick off at the International Road Show for 2019 at the Southeast Asian Petroleum Exploration Society (SEAPEX) Exploration Conference and Farmout Forum in Singapore on April 2-5. These will be followed by roadshows in the United States, Canada, Abu Dhabi, and Argentina.

Energy Secretary Alfonso G. Cusi said: “For an energy-secure future, the DoE is committed to establish a strong ‘Explore, Explore, Explore’ program by harnessing indigenous energy resources. It is urgent that we intensify our exploration and development activities. We need to become energy self-sufficient so we are better protected from international price market volatilities.” — Victor V. Saulon

City of Dreams Manila revenues drop amid VIP market slowdown

THE operator of City of Dreams Manila reported a six percent decline in revenues last year, as the VIP market’s slowdown tempered the growth in the mass gaming segment.

In a disclosure to the stock exchange on Monday, Melco Resorts and Entertainment (Philippines) Corp. said net revenues stood at $612.9 million in 2018, lower than the $649.3 million it booked in 2017.

The VIP gaming segment saw rolling chip volume of $11.097 billion, 3.6% lower year on year. Win rate also improved to 3.2% from 3.1% a year ago.

Mass market table drops reached $787.3 million, 14.6% higher than the $686.9 million posted in 2017. Hold percentage was also higher at 31.7% against 29.6% last year.

For gaming machines, volumes amounted to $3.55 billion, 16.6% higher compared to 2017’s $3.04 billion. Win rate slowed to 5.5% versus 5.8% last year.

As of end-2018, the City of Dreams Manila had an average of 1,708 slot machines, 221 electronic gaming tables, and 300 gaming tables.

Meanwhile, non-gaming revenues were flat at $117.1 million for this year.

Despite the lower net revenues, adjusted earnings before interest, taxation, depreciation, and amortization firmed up 15% to $269.2 million.

“In the Philippines, City of Dreams Manila delivered another solid year underpinned by robust mass gaming revenue growth,” Melco International Development Ltd. Chairman and Chief Executive Officer Lawrence Yau Lung Ho said in a message to shareholders disclosed on the Hong Kong Stock Exchange.

Melco International is the largest shareholder of Melco Resorts & Entertainment Ltd., which in turn is the largest shareholder of MRP.

Melco International said it will continue to expand its premium offerings in the country due to the integrated resort and casino’s stable growth performance alongside the development of more transportation infrastructure projects.

“(T)he Group anticipates continued growth in this market since it is expected that regional and global tourist arrivals, overnight visitors from ASEAN countries and overall gaming activity at our resort in Manila will be further boosted,” the company said.

The City of Dreams Manila is one of three integrated resort and casino complexes inside the Philippine Amusement and Gaming Corp.’s Entertainment City in Parañaque City. It stands alongside Bloomberry Resorts Corp.’s Solaire Resort & Casino and Universal Entertainment Corp.’s Okada Manila.

Trading of shares in MRP are currently suspended as the company has yet to comply with the minimum public ownership rule set by the Securities and Exchange Commission. — Arra B. Francia

AppleOne Properties develops integrated complex in Cebu

By Mark Louis F. Ferrolino
Special Features Writer

LAPU-LAPU CITY — Developer AppleOne Properties, Inc. (API) started the construction of its Mahi project in Cebu, which is envisioned as a lifestyle destination.

The project will stand on a 7,500-square-meter lot in Mactan Export Processing Zone (MEPZ) 1 owned by the Philippine Economic Zone Authority (PEZA) in Lapu-Lapu City.

API has earmarked around P1 billion for the construction of Mahi, where 41% of the space will be used for a hotel and retail area, 30% for information technology (IT) industry, and 29% for common utilities and facilities.

“This development is a proof of our commitment to delivering innovative projects. And by this, we’re raising another game changer with an iconic brand at the heart of Mactan, and contributing to Mactan’s economic progress,” Ray Go Manigsaca, API president and chief executive officer, said during the groundbreaking ceremony for Mahi on March 20.

“In two to three years from now, this area will be a site to behold and a true landmark,” he added.

Mahi will include a five-storey building with two floors of office spaces, three floors of commercial and retail spaces, a function room, and a rooftop bar and restaurant.

The project will also house a 12-storey hotel with 180 rooms to be managed by Marriott International, Inc. It will operate under the brand name “Fairfield by Marriott.”

Steve Baek, senior director of hotel development of Marriott International-Asia Pacific, is optimistic about the hotel’s prospects in Cebu because of its market — a good balance of corporate and leisure travellers.

“When I see the market segment in Cebu, there are a lot operating there — the MICE (Meetings, Incentives, Conventions and Exhibitions) and the leisure — which is actually great for the hotel business,” Mr. Baek told reporters on the sidelines of Mahi’s groundbreaking ceremony.

Marriott International, he said, is looking forward to a successful working relationship with API in more business opportunities.

“API is a very renowned contractor and developer in the market with a great reputation and track record. Marriott International is so glad to have a chance to work with such a great business partner and owner,” Mr. Baek said.

Meanwhile, PEZA Director-General Charito B. Plaza said that Mahi will help modernize the face of Mactan ecozone.

“The Mahi by AppleOne Properties, Inc. is really a welcome venture that will change the face of not just Mactan Economic Zone but Lapu-Lapu City, and a big contribution to our development,” she said in a speech during the event.

Ms. Plaza added that the project is very timely since PEZA is starting to transform economic zones into townships, which will have industrial, commercial, and residential components.

In the years to come, Cebu-based API, according to Mr. Manigsaca, will continue its expansion in the mixed-use market and will bring in more international hotel brands in Cebu to cater to the province’s growing tourism sector.

API’s subsidiary, AppleOne Mactan, Inc., is the developer of the forthcoming five-star Sheraton Cebu Mactan Resort and the first Sheraton-branded residence in Southeast Asia, The Residences at Sheraton Cebu Mactan Resort.

Dumbo reviews suggest live-action remakes don’t always fly

DUMBO, a live-action remake of Walt Disney Co.’s 1941 animated classic, hit theaters Friday, but many reviewers declared the film a snoozer even before it opened.

The picture, about a lovable elephant whose oversize ears allow him to fly, is “abysmally scripted and hamily acted,” according to the Globe and Mail. It’s “ostentatious and overworked,” said Time magazine. “Painfully de-tusked,” the Guardian offered. Overall, just 54% of critics recommended the film, according to Rotten Tomatoes.

The reviews suggest remaking classic animated films using real-life actors and computer-generated characters is far from a sure thing. Some have done spectacularly well, such as 2017’s Beauty and the Beast, which took in $1.26 billion worldwide. Christopher Robin brought in a disappointing $198 million last year. Three more are due out soon: Aladdin in May, The Lion King in July, and Mulan in March 2020.

Disney didn’t immediately respond to requests for comment.

Dumbo had an underwhelming liftoff at the North American box office. The live-action remake debuted with $45 million from 4,259 North American theaters, below expectations heading into the weekend.

While that was easily enough to top the domestic box office, it marked the lowest start among the studio’s recent live-action remakes of Disney classics. To compare, 2017’s Beauty and the Beast debuted with $174 million, 2016’s The Jungle Book opened with $103 million, and 2015’s Cinderella launched with $67 million.

Heading into the weekend, Dumbo was expected to surpass $50 million in its first three days of release. Part of the reason for the softer opening is likely because the original Dumbo cartoon came out 80 years ago, making the lovable elephant seem slightly less relevant than newer classics like Beauty and the Beast and The Jungle Book, which both became huge successes for the studio.

Dumbo carries a $170-million production budget. The high-flying elephant will have to resonate overseas should Dumbo not pick up steam at the domestic box office. The movie launched in most international territories this weekend, amassing $71 million from foreign markets for a global start of $116 million.

Not all reviewers were down on Dumbo, which was directed by Tim Burton, a stylist whose work includes Edward Scissorhands. The Atlantic and Vulture both praised the director’s take on the film, particularly the flight scenes.

Mr. Burton gets credit in part for inspiring Disney’s recent live-action remakes. His 2010 Alice in Wonderland, a reimagining of the 1951 classic, grossed more than $1 billion worldwide.

There are many reasons for Disney to pursue the remake strategy, besides just box-office performance. The Burbank, California-based entertainment giant needs to keep characters such as Cinderella and Snow White fresh in children minds’ because of the roles they play in the company’s theme parks and merchandising business. — Bloomberg/Reuters

Sotto says House members trying to avert budget veto

By Charmaine A. Tadalan
Reporter

SENATE President Vicente C. Sotto III said the House of Representatives is making a “last-ditch effort” to save its post-ratification realignments in the P3.757-trillion national budget from being vetoed.

House appropriations committee chair and Camarines Sur 1st District Rep. Rolando G. Andaya, Jr., on Monday accused the Senate of sabotaging the government’s “Build, Build, Build” program, after reducing the allocation for the Department of Public Works and Highways (DPWH) and the Department of Transportation (DoTr), among other agencies.

“It’s a last-ditch effort to obfuscate the issue and try to prevent the President’s veto of their illegal realignments,” the Senate President told reporters in a phone message on Monday. “Even their colleagues know. No excuses necessary because the President knows everything.”

The budget, ratified on Feb. 8, is awaiting President Rodrigo R. Duterte’s signature after Mr. Sotto on March 26 signed the bill, ending the impasse between both Houses which has stalled budget enactment for the first quarter of 2019.

This delay has prompted the interagency Development Budget Coordination Committee to slash its growth forecast for 2019 gross domestic product (GDP) to 6-7% from 7-8%, while the National Economic and Development Authority projected separately that the full-year GDP growth will decline to 6.1-6.3% if the reenacted 2018 budget remains in force until April.

Mr. Sotto, despite signing the national budget, noted his “reservations” about the post-ratification realignments made by the House, amounting to P95 billion. Of this amount, he said P75 billion has been realigned to programs and projects under the Local Infrastructure Program of the DPWH.

“The House introduced amendments increasing the budget for infrastructure projects without breaching the total amount pegged by the National Expenditure Program,” Mr. Andaya said in a statement on Monday.

“It is the Senate that may find itself liable to accusations of sabotage when it decided, unilaterally, to cut down the allocation for the President’s ‘Build, Build, Build’ Program and other priority projects.”

Mr. Andaya identified, among others, the Senate slashed P5-billion and P11.033 billion from right-of-way projects under the DoTr and the DPWH, respectively; and some P2.5 billion for Foreign Assisted Projects, also under the DPWH.

Meanwhile, conflict rose among House members over the weekend after Camarines Sur 2nd District Rep. Luis Raymund F. Villafuerte, Jr. alleged that P92.3 billion was realigned to districts favored by the current leadership. House Majority Leader Fredenil H. Castro of the 2nd District of Capiz later addressed this in a March 30 statement, saying Mr. Villafuerte is “peddling fake news.”

Senator Panfilo M. Lacson, for his part, told reporters in a phone message: “The infighting brought about by the ‘spoils for the victors’ actually exposed the indiscretions of the House leadership in whimsically realigning pork insertions even after the ratification of the bicam report.”

“On a positive note, this is good for us and the Filipino taxpayers since it could make it easier for Malacañang to discern when the president exercises his line item veto authority,” he added.

AEV prepares P5-B bond issue

ABOITIZ Equity Ventures, Inc. (AEV) will be issuing P5 billion worth of bonds within the first half of this year for debt refinancing.

In a disclosure to the stock exchange on Monday, the listed conglomerate said it has filed the registration statement for the first tranche of the P30-billion bonds under its debt securities program.

The first tranche will consist of P3 billion with an oversubscription option of up to P2 billion. Upon issuance, the bonds will be listed at the Philippine Dealing and Exchange Corp.

“Proceeds from the first tranche of the Bonds will be used as part of the refinancing plan of the medium-term loan of AEV International Pte. Ltd., a wholly owned subsidiary of AEV,” the company said.

AEV International had earlier acquired a loan worth $338 million to finance the acquisition of a 75% equity interest in Gold Coin Management Holdings Ltd. by another AEV subsidiary, Pilmico International Pte. Ltd.

Pilmico International acquired a majority stake in Singapore-based Gold Coin last year, tightening its grip on one of Asia’s largest privately owned agribusiness corporations. It currently operates 20 livestock and aqua feed mills across 11 countries in the Asia-Pacific region.

AEV said it will invest up to $200 million in the next two to three years to further expand Gold Coin’s factories in the region.

BDO Capital & Investment Corp. and First Metro Investment Corp. were tapped to act as the offering’s joint issue managers, joint bookrunners, and joint lead underwriters.

AEV Chief Finance Officer Manuel R. Lozano earlier said that they may issue P10 billion worth of bonds every year, since the shelf registration lasts for three years.

AEV plans to spend P81 billion in capital expenditures this year, 65% higher than its actual spending of P49 billion in 2018. About 63% of this budget will go to power projects, while 37% will be for non-power items.

The company is currently constructing the P12.6-billion Apo Agua bulk water project in Davao City. The project will have the capacity to process 347 million liters of water per day, making it the largest bulk water project in the country. It also comes with a 2.5-megawatt hyroelectric power plant to support its operations.

AEV looks to start operations for the bulk water facility by 2021.

AEV’s net income grew by three percent to P22 billion in 2018, following a 24% increase in revenues to P187 billion.

Shares in AEV jumped 1.44% or 85 centavos to close at P59.80 each at the stock exchange on Monday. — Arra B. Francia

Palay prices continue to drop at farmgate despite El Niño losses

RICE prices continued to decline at farmgate level, the Philippine Statistics Authority (PSA) said, despite mounting losses to domestic production caused by El Niño, ahead of the entry into the market of more foreign rice imported by the private sector.

The average farmgate price of palay, or unmilled rice, dropped for a fourth consecutive week to P18.98 per kilogram (kg) in the third week of March, down 0.26% week-on-week, according to PSA data released on Monday.

The average wholesale price of well-milled rice fell 0.37% week-on-week to P40.66 per kg.

At retail, the average price of well-milled rice fell 0.20% week-on-week to P44.33 per kg.

The average wholesale price of regular-milled rice fell 0.35% week-on-week to P37.18 per kg, while the average retail price fell 0.25% to P40.30.

The average farmgate price of yellow corn grain fell 0.07% week-on-week to P13.83 per kg.

At wholesale, the average price of yellow corn grain rose 0.27% week-on-week to P18.50 per kg. The average retail price rose 0.04% to P24.

The average farmgate price of white corn grain rose 1.14% week-on-week to P15.13 per kg. The average wholesale price rose 2.36% to P22.16.

The average retail price of white corn grain rose 0.70% week-on-week to P28.72 per kg. — Reicelene Joy N. Ignacio

New Spanish tile collection uses inkjet technology

By Vincent Mariel P. Galang
Reporter

CEBU Oversea Hardware Co., Inc. (COHCI) recently introduced its latest tile and bathroom collections at the World Building and Construction Exposition (WORLDBEX) 2019.

Established 60 years ago, the Cebu-based hardware construction and finishing materials supplier has been importing tiles for about 20 years.

Its latest tile collection includes Spanish brand Baldocer, which offers big porcelain tiles called B Plus. This collection utilizes inkjet technology that allows it to put on designs on the tiles. This allowed the company to produce tiles that look like real marble, making it a cheaper alternative. These tiles are now available in variants of 80×160 and 120×120 in the Philippines, which makes it easy to transport.

“Since the digital technology came… and we can print on the tiles any design that is suitable. You can print wood, you can print marble, you can print cement, you can print stones. Everything is printed now, so the beauty of the technology now is to be able to produce marbles since they are extremely expensive,” Oscar Vilar, Asian market export director of Baldocer, told reporters during a media briefing.

Tile alternatives such as vinyl have not affected sales for porcelain and ceramic tiles with this technology.

”As of now it doesn’t show because one, the demand for ceramic and porcelain tiles go with the growth in the construction industry, but more especially with the advent of new inkjet technology that has been applied to ceramic and porcelain tile. It was able to get market and substitute for other tiles,” Michael Co, vice president for sales and marketing of COHCI, said in an interview with BusinessWorld.

For instance, the expensive onyx marble can be substituted with porcelain tiles printed with onyx marble texture. One can pay as much as $500 per square meter of onyx marble purchased from quarry, while the porcelain tile can cost 10-20% of the price.

“We are able to imitate exactly that marble, but in tiles to make it affordable,” Mr. Vilar noted. “In Spain, when we destroy a building, those material we bring to the clay factory. What we do is we recycle the old dust… be compressed to [be] used again as a tile.”

The tiles also undergo direct press to make sure that the surface is even.

COHCI also has an in-house brand Luxe, which is a collaboration with Italian designers and some Asian producers. “Most of the designs for Luxe are patterned after Italian designers so we buy the film from Italian suppliers and we put them into production,” Maria Cyrina Pascual, brand development manager of COHCI, said.

Other Spanish brands brought in by the company are Alaplana, Argenta, and Cicogres which are available in different sizes. COHCI also offers brands such as Capucino and Studio.

For the bathroom products, the company introduced a water closet that does not require users to touch it. Instead, a remote control is used, making it more kid-friendly.

“Tile and bath always go together, so after we are able to develop ceramic tiles, we developed Cool Bath System,” Ms. Pascual noted.

The Foss Newton Intelligent Toilet Innovation (INTELLET) feature auto-flush and pre-flush smart features, wireless remote control, heated seat and deodorizer. It can function both through electricity and through battery.

Other bathroom products included in the collection are GlazeProtec toilet series with nano-technology, which prevents bacteria from settling on the equipment, and pristine bathtub and brass fittings.

COHCI introduced its retail channels starting 2002, namely CW Home Depot (Manila), Cebu Home and Builders Centre (Cebu), and Living N’ Style (Manila) which is also its showroom. Tile products come from countries like Malaysia, Thailand, Vietnam, Indonesia, and Spain.

DJ Fatboy Slim performing at Cove Manila

LEGENDARY DJ Fatboy Slim will be performing at Okada Manila’s Cove Manila on April 12, 10:30 p.m.

The English DJ and record producer is set to sizzle at a show presented by the IKON Urban Music Festival series.

Fatboy Slim (real name Norman Quentin Cook) first made waves as the bassist for the 1980s indie-rock band Housemartins, before going on to form Beats International. The mid-1990s saw the birth of his most iconic persona as Fatboy Slim, churning out hits such as “Praise You,” “Weapon of Choice,” “The Rockafeller Skank,” and “Wonderful Night.”

He has collaborated with David Byrne, the Beastie Boys, Spike Jonze, Macy Gray, and Christopher Walken among many others, earning him distinctions such as six awards in the 2001 MTV Video Music Awards, two Brit Awards, and the Guinness World Record for the most top 40 hits under different names. In the recent years, he has concentrated on DJ gigs over producing records. His own brand of “Party Acid House” music, complemented by audio-visual productions, make for unique shows.

The April 12 show will start at 10:30 p.m., kicking off with a special first act. For details, visit www.covemanila.com.

Bill tapping Malampaya fund to pay for NPC debt seen ratified before Congress concludes

THE Murang Kuryente Bill, which will settle the National Power Corp.’s (NPC) obligations by tapping the P208-billion net national government share in the Malampaya fund, is expected for ratification when the congressional session resumes in May.

“I hope President Duterte will sign this landmark bill immediately for the Filipino people to finally receive tangible benefits from the Malampaya Fund as soon as possible,” Senator Sherwin T. Gatchalian, chair of the energy committee, was quoted as saying in a statement on Monday.

The Bill is expected to generate P172 in monthly savings per household for those consuming 200 kilowatt-hours (kWh) on average. The measure hurdled the Bicameral Conference Committee on March 7.

The House of Representatives and the Senate are currently in recess until May 19 for the midterm elections. Session will resume on May 20-June 7, leaving legislators three weeks of work before the 17th Congress concludes.

If signed into law, the measure will utilize the P208-billion government share in the Malampaya Natural Gas Project to cover NPC’s stranded contract costs and stranded debts. These are currently passed on to consumers through the universal charge.

Further, Mr. Gatchalian said NPC’s obligations will likely reduce power rates more than expanding coverage and increasing subsidies to certain households, through so-called lifeline rates.

The lifeline rate is a subsidy granted to those whose power consumption is less than 100 kWh per month.

“Based on our internal research, we determined that increasing subsidies and expanding the coverage of lifeline rates with the use of the net profit share earned by the government from the operation of the Malampaya Natural Gas Project will have little impact on the average household,” Mr. Gatchalian said.

He noted that should the Malampaya fund be utilized for the lifeline rates, an average of 200 kWh monthly consumption will only generate a total of P21.54 savings. — Charmaine A. Tadalan

PXP Energy shares slump after deal with Dennis Uy scrapped

By Victor V. Saulon
Sub-Editor

SHARES in PXP Energy Corp. plunged by nearly 19% on Monday, the first trading day of the week after it announced that the deal calling for Davao City businessman Dennis A. Uy to invest in the listed company fell through.

The oil and gas exploration company, which has a contract to exploit an area in the disputed West Philippine Sea, was the day’s biggest loser as it ended at P9.96 per share, or down by P2.32 from its previous close.

“This was due to the termination of the investment agreement. The deal was supposedly for P4.03 billion, or the issuance of 340 million shares for 11.85 each,” said Luis A. Limlingan, business development head at Regina Capital Development Corp., when asked to comment on PXP Energy’s share fall.

On Friday, PXP Energy Corp. said that the subscription agreement it had signed with Mr. Uy’s Dennison Holdings Corp. had been terminated by the two parties effective on March 29.

On the termination date, the company said all rights of Dennison to subscribe to the common shares of the Pangilinan-led company, and any of the latter’s obligation to issue those shares to the investor are terminated “without any residual rights of any kind remaining” with Mr. Uy’s holding firm.

Accordingly, all other rights of PXP Energy under the agreement are terminated, it said, including the right to receive payment of the remaining balance of the subscription price.

At one point during trading on Monday, PXP Energy reached P9.20 per share. Its 52-week low was at P9.80 per share.

Mr. Limlingan said since PXP Energy was the target acquisition, the terminated deal would have a bigger impact on the company, than on Phoenix Petroleum Philippines, Inc., which closed lower by 0.16% at P12.20 per share on Monday.

In a trading note, RCBC Securities, Inc.’s Fiorenzo de Jesus said the reason for PXP Energy’s stock slump was its disclosure that the share purchase deal with Mr. Uy’s holding firm fell through.

Officials of both PXP Energy and Phoenix Petroleum did not immediately respond when ask to comment on the reason for their decision to mutually terminate the deal.

The termination came after Mr. Uy in January this year paid P40.29 million or the 1% downpayment for Dennison’s subscription to PXP Energy’s shares.

The payment followed the forging of an amended subscription agreement between the two parties on Dec. 26, 2018, wherein they agreed to reschedule and accelerate the full payment of Dennison’s subscription to not later than March 31, 2019. The amendment also called for Dennison to pay the downpayment on or before Jan. 7, 2019.

The subscription agreement was announced by PXP Energy on Oct. 26, 2018. In the same month, Phoenix Petroleum granted preferential rights to PXP Energy to participate and acquire up to a 49% equity in the former’s liquefied natural gas (LNG) project under subsidiary Tanglawan Philippine LNG, Inc.

In the event Dennison fails to pay the entire subscription price by March 31, the entire amount of the downpayment will be forfeited in favor of Mr. Pangilinan’s company and the subscription agreement will be terminated at the option of PXP Energy.

After the subscription to the shares and full payment of the subscription price, Dennison will be entitled to at least one seat in the PXP Energy board, as well as to nominate the board’s vice-chairman. Mr. Uy’s firm is also entitled to all other rights of a shareholder.

PXP Energy directly and indirectly owns oil and gas exploration and production assets in the Philippines, and indirectly owns an exploration asset located in offshore Peru.

The amendment came after PXP Energy disclosed on Dec. 21 that Forum (GSEC 101) Ltd., or Forum GSEC, had sent a letter of request on the same date to the Department of Energy (DoE) to lift the force majeure imposed on Service Contract (SC) 72 on Recto Bank.

Forum Energy Ltd., in which PXP Energy holds a direct and indirect interest of 78.98%, has a 70% participating interest in SC 72 located in Northwest Palawan, through its wholly owned subsidiary Forum GSEC. PXP Energy has a total economic interest of 53.1% in SC 72.

The DoE placed SC 72 under force majeure on March 2, 2015 because the contract area falls within the area that was at that time the subject of an arbitration process with China.

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