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Safety first

The success of transporting goods from one place to another via commercial vehicles relies on the degree of safety drivers undertake. Since commercial vehicles usually take a larger space on the road, it entails a bigger responsibility for drivers. Honda Philippines, on its Web site, states that most “traffic accidents are due to human errors that may sum up into two major causes: lack of proper safety attitude; and inadequate skills to operate motor vehicles.”

Safety is definitely an important thing any driver must not forget. Here are a few things to keep in mind when riding a commercial vehicle.

Be prepared. Get updated about the weather, the road conditions, and the route to be taken before you hit the road. Prepare also for unexpected situations that might spring up while you’re riding. Regularly check your vehicle based on BLOWBAGETS (Brake, Lights, Oil, Water, Battery, Air, Gas, Engine, Tire, and Self). Since riding commercial vehicles often take long hours, it is important for drivers to get enough rest before driving and to take breaks when tired.

Buckle up. As simple as it sounds, always making sure your seatbelt is clipped around you is already a life-saver, “especially during car collisions, as it spreads the force of the impact over a wider area of the body and puts less stress on any one part,” online vehicle marketplace Carmudi PH wrote in an article.

Turn on signals. Signaling is an important means of showing other drivers your intent to turn, change lanes, back up. It is also a vital way for drivers of larger vehicles to communicate their presence, particularly before and during a maneuver.

Be alert. Being on the road necessitates alertness. As stated on their Web site, Federal Motor Carrier Safety Administration (FMCSA) advises truck and bus drivers “to be constantly vigilant to detect unexpected road conditions, distracted drivers, and motorists who don’t understand how commercial vehicles operate.” Watch out for work/construction zones and roadside hazards, since caution is more needed in these areas.

Remove distractions. A large vehicle needs your undivided attention to the road. Being distracted by mobile phones or anything that takes your eyes off the road puts you at risk. FMCSA advises that it’s better to get to the nearest exit or pullover in such situations.

Give space. “The bigger and heavier the vehicle, the harder it is to pump the brakes and stop,” writes Gregory Miller in the Web site of American transportation company Celadon. Therefore, it is necessary to distance your vehicle. Apply the three-second rule, leaving at least three seconds of space between you and the vehicle in front.

Take it slow. Riding the vehicle within a road’s speed limit, as driving coach Don Palmer shares in Shell Philippines online, “gives you plenty of time and distance to respond to anything you may encounter.” In addition, take extra care when riding under tough or unfavorable weather or road conditions. Slow down at curves or ramps, lest spills, rollovers, or crashes occur. — Adrian Paul B. Conoza

BSP raises rates in ‘proactive’ move

By Melissa Luz T. Lopez
Senior Reporter
THE CENTRAL BANK fired off a softer rate increase yesterday as policy makers saw the need for preemptive action amid global uncertainty, and as price expectations remain elevated back home.
The Monetary Board raised policy rates by 25 basis points (bp) on Thursday, marking the fifth consecutive tightening move this year. This followed back-to-back 50bp increases in August and September and two 25bp increases in May and June, worth a total of 175 bps.
Benchmark rates now range from 4.25-5.25% effective today. The key policy rate is now at 4.75%, the highest since March 2009.
“[T]he Monetary Board decided to raise the policy rate by 25 basis points given the upside risks to the inflation outlook and given that inflation expectations have remained elevated as supply-side and possible wage pressures continue to drive price developments,” BSP Deputy Governor Ma. Almasara Cyd N. Tuaño-Amador said in a press briefing.
A BusinessWorld poll of economists last week resulted in a toss-up, with six betting the BSP will keep rates steady and five seeing a good chance for a 25bp hike.
Inflation steadied at 6.7% in October, matching September’s print which was a nine-year high. Still, it ended a steady rise in consumer prices seen since the start of the year. Food prices posted a slower year-on-year increase last month, with economic managers noting that state interventions to boost food supply have started to take effect.
Month-on-month inflation likewise eased to 0.3% coming from 0.9% logged in September.
Last week, BSP Governor Nestor A. Espenilla, Jr. said the October print affirms their view that price pressures are “finally moderating,” while Deputy Governor Chuchi G. Fonacier noted there is room for the central bank to stay on hold as prices of goods have been easing even in early November.
‘PROACTIVE’
“The Monetary Board deemed it necessary to respond with proactive policy action to help temper the risks to the inflation outlook, including those emanating from the continued uncertainty in the external environment amid tighter global financial conditions and trade tensions among major economies,” Ms. Tuaño-Amador said yesterday, adding that the central bank’s decision already factors in an expected rate hike in the United States.
Economists who noted the need for another hike said the move is necessary to further cool inflation expectations and ensure that local yields will remain competitive even after the US Federal Reserve raises rates anew in December.
Others, however, were concerned about how rapid inflation and rising interest rates could further dampen economic growth, which settled at a three-year low of 6.1% during the third quarter.
Monetary policy makers also said they found it appropriate to tighten rates further despite a slower-than-expected economic growth, as the above-six percent rate shows the economy stands “resilient and robust” despite rising borrowing costs. Loan growth continues to be healthy and supportive of expansion, Ms. Tuaño-Amador said.
Alex Holmes, Asia economist at Capital Economics, said the BSP’s latest rate hike may be the last this year “with inflation set to fall back over the coming months.”
SLOWER INFLATION AHEAD
The central bank said they now expect inflation to clock in slower in the coming months, with price increases seen to settle below four percent over the next two years with latest measures seen to bring costs down.
Dennis D. Lapid, director of the BSP’s Department of Economic Research, said inflation is expected to settle at 5.3% this year, higher than the 5.2% expected previously due to the recently-announced increase in transport fares for public jeepneys and buses, as well as recent movements in global oil prices.
“The latest view is we’re looking at a deceleration in inflation,” Mr. Lapid said.
Inflation averaged 5.1% from January-October, well above the 2-4% target band for 2018.
By next year, inflation is expected to settle at 3.5%, back within target and lower than the 4.3% previous estimate. In 2020, prices are seen to rise by 3.3% from 3.2%.
The “substantial” reduction in the forecasts factor in the recent approval of the rice tariffication bill, which is nearing enactment after clearing the Senate on Wednesday. Authorities said this could reduce inflation by 0.7% in 2019 as the increased supply of the crop will bring down rice prices by as much as P7 per kilogram.
Ms. Tuaño-Amador added that the revised forecast also takes into account the suspension of the additional P2 per liter increase in fuel excise tax approved by President Rodrigo R. Duterte recently. These are now factored into the outlook given the “considerable degree of certainty” of their implementation.
Central bank officials also noted that non-monetary measures introduced by the Executive are starting to be felt, as greater food supply is seen to alleviate price pressures. Inflation has been food-driven as of late, according to the Philippine Statistics Authority.
Ms. Tuaño-Amador added that these interventions are expected to have a “very positive impact” on consumer sentiment and behavior. “The efficacy of the non-monetary measures will get some traction as we see the implementation of these programs.”
“It’s also important to understand that these non-monetary measures also can impact on sentiment and consumer behavior. Once you are able to rein in inflation expectations, then price and wage setters will be restrained in demanding higher prices,” she added.
The BSP will hold its final rate-setting meeting for this year on Dec. 13.

Cash remittances at one-year low in September despite 2.3% climb

REMITTANCES logged a one-year low in September despite posting a modest increase, the central bank reported yesterday, which led to tempered consumer spending during the period.
Money sent home by overseas Filipino workers (OFWs) totalled $2.237 billion for the month, up 2.3% from the $2.186 billion inflows received since September 2017, according to the Bangko Sentral ng Pilipinas (BSP).
The amount, however, declined from the $2.476 billion received in August.
September’s total remittances brought the nine-month tally to $21.294 billion, 2.5% higher than the $20.781 billion sent home by migrant workers during the comparable year-ago period. However, the year-on-year growth is slower than the four percent increase expected by the BSP this year.
Cash transfers from OFWs support domestic activity and overall economic growth. Household spending has long been the biggest growth driver, although the share of investments is on the rise.
In a statement, the central bank said land-based workers sent home $16.8 billion during the first nine months, representing a 2.2% increase from last year. On the other hand, those working at sea remitted $4.5 billion so far, up 3.5% from 2017.
Michael L. Ricafort, economist at the Rizal Commercial Banking Corp., said OFWs may have decided to send less cash than usual back home, as the exchange rate still boosted the value of their remittances in peso terms.
The peso averaged P54.0066 versus the dollar in September, weaker compared to the P53.9419 rate a year ago.
“OFWs and their families tend to receive higher peso proceeds/equivalent of their remittances, resulting to higher purchasing/spending power for them,” Mr. Ricafort said. “However, any benefit from a higher US dollar/peso exchange rate for OFWs and their families/dependents may have been offset by higher inflation.”
Filipinos working in the United States were the biggest source of cash remittances in the first nine months of the year. Other major sources are OFWs based in Saudi Arabia, the United Arab Emirates, Singapore, Japan, United Kingdom, Qatar, Canada, Germany and Hong Kong. These countries accounted for 79% of the total inflows.
Remittances usually peak closer to December every year as OFWs send more money in time for the Christmas season, funding increased spending for festivities and gifts during the holidays.
Economic growth eased to 6.1% during the third quarter, the Philippine Statistics Authority reported last week, pulled down by softer consumer spending which eased to 5.2% from 5.9% the previous quarter.
Socioeconomic Planning Secretary Ernesto M. Pernia said authorities are “concerned” about the marked slowdown in household spending on food and other basic products, at a time when inflation is surging to nine-year highs. — Melissa Luz T. Lopez
Overseas filipinos’ cash remittances (September 2018)

Overseas filipinos’ cash remittances (September 2018)

REMITTANCES logged a one-year low in September despite posting a modest increase, the central bank reported yesterday, which led to tempered consumer spending during the period. Read the full story.
Overseas filipinos’ cash remittances (September 2018)

Big-name investors favor US equities

US EQUITIES will outshine their international counterparts over the coming year, despite slowing corporate profit growth and increased stock market volatility, several big-name investors said.
Low unemployment, the continued benefits of the Republican-led corporate tax cuts, and concerns of a protracted economic slowdown in Europe should result in US equities remaining the best-performing world market, investors said at the Reuters Global Investment 2019 Outlook Summit in New York this week. US stocks have already outperformed other markets this year at a clip that is the best in nearly five years.
“From the growth differential perspective, even though the US is now slowing, the rest is slowing more sharply. So most other stock markets will probably suffer more than the US,” said Joachim Fels, global economic adviser at Pacific Investment Management Co.
US corporate profits are expected to grow by 10.8% in 2019, compared with a 23.7% increase in 2018, according to global markets research at FTSE Russell, as the boost from the corporate tax cuts begins to fade.
That compares to earnings growth of 10.4% in 2019 for European companies excluding the UK, 16% next year for emerging markets companies, and 4.9% for Japanese companies, according to FTSE Russell.
The US economy is expected to grow by 2.5% next year, according to estimates from the Federal Reserve. By comparison, the economy of the euro zone is expected to grow by 1.9% next year, down from previous forecasts of 2%, the European Commission said on Nov. 8.
“The US has been the lodestar in terms of corporate profits,” said Richard Bernstein, chief executive of Richard Bernstein Advisors LLC.
The US benchmark S&P 500 index is up 1% so far this year, compared with an 11.5% drop for an exchange-traded fund designed to measure equity market performance outside the United States. If that 12.5 percentage point difference holds for the year, it would be the largest annual outperformance for US stocks since a 19-point difference in 2014, according to Refinitiv data.
The October selloff in the US stock market, which erased what had been a nearly 10% rise in the Dow Jones Industrial Average for the year-to-date, could leave the US stock market poised for gains in the year ahead, said Byron Wien, vice-chairman at Blackstone Advisory Partners.
“The US market was very fully priced in September, and so the fact that we have had a severe correction which is continuing is understandable, but it is moving into an attractive range,” he said.
At the same time, he added, emerging markets may offer more compelling valuations, even if the United States continues to outperform. “My view is that’s where the real values are, and I would do some nibbling there,” he said.
Indeed, the US stock market is more expensive than international equities, based on price-to-earnings ratios.
The S&P 500 is trading at 15.6 times earnings estimates for the next 12 months compared with 12.6 times for Europe’s Stoxx index and 10 times for the MSCI emerging markets index, according to Refinitiv data.
Citron Research’s Andrew Left, a prominent short-seller who has published critical reports on Chinese companies and profited when their shares dropped, said he finds some Chinese companies more attractive than their US counterparts.
“There is value in China,” Left said. “I would take Alibaba all-day-long over Amazon.”
Many stocks have declined due to concerns about the fallout from the expanding trade war between the United States and China, Left said, even though trade friction between Washington and Beijing could take less of a toll than many expect because domestic demand in China is growing so rapidly that exports will matter less to its economy.
Kera Van Valen, a portfolio manager at Epoch Investment Partners, said she expects global stock market volatility to continue, potentially leaving the US stock market as a safety trade.
“There is more uncertainty in the markets today than two years ago,” she said. “I do think that there are continued challenges outside of the US while the US economy continues to improve.” — Reuters

Higher property sales lift GT Capital Q3 profit

GT CAPITAL Holdings, Inc. logged a 6% growth in attributable profit for the third quarter of 2018, as the surge in real estate sales and higher income from associates offset the auto unit’s drop.
In a regulatory filing, the holding firm of tycoon George S.K. Ty said net income attributable to the parent climbed to P3.8 billion, higher than the P3.58 billion posted in the same period a year ago.
Revenues dipped by 2% to P60.18 billion as automotive operations — which accounted for about 80% of revenues — slumped by 12% to P47.94 billion.
Toyota Motor Philippines (TMP), GT Capital’s joint venture with Toyota Motor Corp. of Japan, reported a 13% decline in wholesale volume for the quarter to 42,303 units, from 48,645 in the same period a year ago. Demand for vehicles continued to be dampened by higher excise taxes, soaring inflation, and rising fuel prices.
With this, GT Capital’s attributable profit for the first nine months of the year was flattish at P10.94 billion, a percent higher than the P10.82 billion booked in the same period a year ago.
The company’s revenues further went down by 5% to P161.34 billion, as wholesale volume of TMP slipped by 12% to 117,080 units. TMP’s revenues accordingly fell by 11% to P132.92 billion.
“Our year-to-date results show the counterbalance between the soft auto sector volume sales mitigated by strong growth in financial services, property, and insurance segments. The consensus is that the decline in auto sales may have bottomed out as monthly volumes have stabilized,” GT Capital President Carmelo Maria Luza Bautista said in a statement.
Real estate sales from Federal Land, Inc. and Property Company of Friends, Inc. (PCFI) compensated for the auto unit’s weakness, rising by 45% to P15.7 billion in the nine-month period. Federal Land was boosted by sales from its middle-market condominium projects and lot sales, while PCFI benefited from affordable and economic housing projects.
GT Capital also saw 39% higher equity in net income of associates to P9.13 billion for the period due to profit increases among the companies.
For Metropolitan Bank and Trust Company, net income for the nine months ending September expanded by 27% to P16.18 billion due to higher deposits and loans. GT Capital holds a 36.36% stake in the lender.
Infrastructure conglomerate Metro Pacific Investments Corp. also posted an 8% increase in consolidated core profit to P12.2 billion. This was driven by increased investments in the power sector, continued traffic growth in its operating toll roads, and tariff adjustments coupled with volume increase from its water unit.
Earnings of AXA Life Insurance Corp. meanwhile jumped by 21% to P2.14 billion, following higher life and non-life premium income for the period.
GT Capital Chairman Arthur V. Ty said they remain optimistic for the company’s performance next year, noting that macroeconomic indicators have shown positive trends as of the third quarter.
“Oil prices have declined, foreign exchange rates have shown some strength, and food prices have stabilized. We believe that these factors, combined with the increased spending levels in the last quarter, provide a good backdrop for improved conditions in 2019,” Mr. Ty said in a statement. — Arra B. Francia

Discovering Surabaya’s spices and steams


By Maya M. Padillo, Correspondent
AS THE crow flies, or an airplane would, Surabaya in Indonesia’s Java Island would just be two hours away from my hometown of Davao in the Philippines’ southern island of Mindanao.
But as existing air transport services do not have direct flights between the two places, it’s quite a long way around to get there, involving three flights — first to Manila, then to Brunei, and finally to the port city in East Java.
It’s worth it though, especially if you are a foodie.
Our recent trip, organized by Vernon Prieto of Expat Communications Inc. and Adjie Wahjono of Aneka Kartika Travels and Tour, was mostly spent hotel-hopping and sampling familiar Indonesian dishes and delicacies unique to Java.
Breakfast at the Bumi Surabaya City Resort was a feast, not just for the stomach, but also for the eyes.
There were the traditional nasi goreng (Indonesian stir-fried rice) and bubur ayam (chicken porridge), and a colorful spread of sweets with klepon (coconut rice balls) and daral (crepes), among other goodies.
The Tugu Hotel in Malang, a highland area and considered the second main city in East Java after Surabaya, offers afternoon tea with choices of traditional Javanese streetfood snacks and a variety of local tea, coffee, and herbal drinks.
The Roti Tugu Bakery, considered the best homemade goods shop in East Java, not just makes bread and cakes, but also serves Malang delicacies, ice cream, and steak dishes that are a reminder of the Dutch colonial times.
Hotel Plataran Bromo, meanwhile, is known for serving the best ayam goreng — chicken deep fried in coconut oil with bakwan jagung (corn fritter) — in these parts.
For a seafood overload, IBC (Ikan Bakar Cianjur) in Pandaan is the place to go.
Among IBC restaurant’s bestsellers are gurame bakar (grilled fish), gurame goreng (fried fish), nila pesmol (fish with yellow spices ), and sop ikan (fish soup). And they also do tumis kangkung (sautéed water spinach), pucuk labu (sauted pumpkin shoots ), ayam kampung goreng (fried chicken), and tahu goreng (fried tofu).
“We use lots of spices… so Indonesian dishes have rich flavors, most often described as savory, hot and spicy,” said our tour guide, Agustina Setiarini.
I am not a fan of chili, but the trip in Surabaya started me on a love for sambal, both the well-known red variety and sambal kecap, which is black with soy sauce mixed in.
MT. BROMO
We did burn some of all that calorie intake with a trek in Mt. Bromo, among the many active volcanoes in the Indonesian archipelago.
Located within the Bromo Tengger Semeru National Park, it is the only conservation area in Indonesia with a sand and sea expanse of about 2,125 hectares.
After a 30-minute ride on an old 4×4 Land Cruiser, we reached the 10-kilometer Tengger caldera inside the Semeru park.
From there, we got individual horse rides, then hiked 253 steps up to the edge of the steaming crater.
Our other stops — in between eating, of course — were the House of Sampoerna, which is a museum and a cigarette factory; the Taman Safari Prigen, a sprawling drive-through natural preserve that is home to such animals as lions, tigers, wild buffalo, komodo dragons, rhinoceros, and bison; Citraland, dubbed as the “Singapore of Surabaya”; and a walk through Surabaya’s Arab Quarter ending at the Mesjid Ampel, considered the most sacred mosque in Surabaya.
Indonesian Consul General Berlian Napitupulu, who is based in Davao City, has been actively pushing for stronger Indonesia-Philippine trade and tourism ties, particularly between the neighboring islands dotting the Celebes and Java Seas.
“We must have a sustainable cooperation,” said Mr. Napitupulu.
Direct transport links would surely be one way of achieving that.
Surabaya is a most interesting place to visit, offering food and nature adventures that many Filipino family and young travelers would enjoy.
Maybe someday soon, it would be easier, quicker, and cheaper to get there.
Royal Brunei Airlines flies a same-day-connect service from Manila to Surabaya via Brunei Darussalam twice a week.

Top Frontier profit drops in 3rd quarter

By Arra B. Francia, Reporter
TOP FRONTIER Investment Holdings, Inc. (TFIHI) posted a 17% drop in attributable profit in the July to September period, as higher expenses dampened the rising sales of its units.
In a regulatory filing, the TFIHI posted a net income attributable to equity holders of the parent of P2.06 billion, lower than the P2.92 billion it booked in the same period a year ago. This came amid a 30% increase in sales to P262.27 billion.
On a nine-month basis, TFIHI’s attributable profit further slipped by 34% to P5.57 billion, even as revenues climbed 27% to P761.16 billion.
TFIHI is the largest shareholder of diversified conglomerate San Miguel Corp. (SMC), which has core interests in food and beverage, fuel and oil, power, packaging, and infrastructure.
The beverage unit through San Miguel Food and Beverage, Inc. expanded revenues by 15% to P206.62 billion in the nine-month period, boosted by the higher volumes across the beer, liquor, and food divisions. This resulted to a 17% increase in operating income to P34.03 billion.
San Miguel Yamamura Packaging Group generated P27.14 billion in revenues for the period, 21% higher year-on-year following the growth of its Australian operations.
For Petron Corp., consolidated revenues exhibited a 34% increase to P419.86 billion, resulting to a 3% uptick in consolidated profit.
The energy unit meanwhile saw its operating income climb 31% to P25.75 billion.
At the same time, the company recorded a 31% increase in cost of sales to P605.01. Billion, on account of higher crude prices and impact of excise tax on Petron. San Miguel Brewery was also affected higher excise taxes, while the food group incurred higher costs due to price increases in major raw materials.
TFIHI also logged higher interest expenses during the nine-month period, given the higher level of loans payable and long-term debt compared to last year.
As of end-September, SMC has issued P50 billion in Series A, B, C, D, E, F, and G bonds, it availed $400 million worth of long-term debt last year, in addition to another $400 million last March. It also availed of $300-million corporate notes last June.
The power unit through SMC Global Power Holdings, Corp. also availed of $1.2-billion loan this year, in addition to P15 billion worth of bonds last August to finance its acquisition of the Masinloc group. In 2017, the company also raised P20 billion worth of bonds.
The peso further affected the company’s expenses, as it depreciated to P54.02 by the end of September from P49.93 in December 2017. This led to higher foreign exchange losses on the translation of the foreign currency denominated long-term debt and finance lease liabilities.
Shares in TFHI gained 0.36% or P1 to close at P279 each at the stock exchange on Thursday.

Catanduanes: heritage, surfing, and island hopping


CATANDUANES — located in the archipelago’s Pacific seaboard off mainland Bicol region — promises pleasant surprises and lives up to its moniker as “The Happy Island” despite its seeming obscurity.
With an extensive coastline, this island province offers stunning beaches minus the madding crowd. The lack of high-end tourist facilities is compensated for by the abundance of its back-to-nature offerings, all withthe perfect-coned Mayon Volcano as a backdrop.
In Virac town — the aerial gateway, provincial capital, and center of commerce, transport, and tourist services in the province — it is highly recommended that visitors drop by the provincial tourism office at the restored the Old Capitol for travel tips and documentation of tourist arrivals.
A tourist’s itinerary should include a visit to Museo de Catanduanes for a glimpse of the local heritage, and if a tour of the museum in pre-arranged, guests can be regaled by the Padadyaw sa Tinampo, a folk dance of couples which mimics the courtship of the doves. Also called the Pantomina, the dance is performed to welcome special visitors or during social events such as the recent Catandungan Festival which marked the province’s foundation day
A meaningful part of a traveller’s itinerary is planting a tree under the “One Tourist, One Tree” program which has been going on for almost five years now. The program was was the result of suggestions by foreign tourists who were impressed by the province’s forest cover. Catanduanes has 60,000 hectares of forests — considered as the largest green area in Bicol — which includes the 26,010-hectare Watershed Forest Reserve, 1,500 hectares of old- and second-growth forests, and vast abaca plantations which are home to rare species of wildlife.
The Philippines’ top producer of abaca fiber, the province is listed by the Department of Environment and Natural Resources (DENR) as among the country’s most important centers of biodiversity.
One of the province’s resorts which can be used as a home base while exploring the area is the Twin Rock Beach Resort. Among its amenities and recreational facilities are swimming pools, a zipline, a zipbike, watersports equipment, and a customized vintage Volkswagen van that guests can drive around with.
While in Virac, foodies can try the wide array of Bicol cuisine, seafood and crop-based dishes served in home-grown restaurants. There are also a number of cozy coffee shops and watering holes around town.
Nearby is the quaint riverine town of Bato, home to two Spanish-era religious spots — the Shrine of the Holy Cross, where the first cross in Catanduanes was planted, and the Baroque-style St. John the Baptist Church.
The town is also the home of the Maribina Falls — a three-layer cascade which ends in ice-cold natural swimming basins all tucked away within lush vegetation — and the islets of Patag, Carorian Japanese Kaidan, Seaside Waterfalls, Poseidon’s Rock, and Pinta Beach, all of which can be accessed via a chartered outrigger boat.
A must-see is the Puraran Beach in Baras, a fine cream sand beach which is now a surfing playground nicknamed “Majestic” because of its adrenaline-pumping waves. This once-remote spot has become a tourist colony, events and party place, and hosts surfing tourneys.
Up north in Gigmoto is the Nahulugan Falls, a three tier cascade which creates spectacular sprays.
Then there is the Tuwad-Tuwadan Lagoon, a tidal pool in Pandan town. Tucked in the midst of a rock formation is a pool of crystal clear blue-green water, deep enough for a low cliff dive. To get to it one passes the Cagnipa Rolling Hills, a welcoming vista where sky meet the sea.
Island hoppers will enjoy Palumbanes and Calabagio isles whose turquoise waters teem with marine life, ideal for snorkeling and a potential site for scuba diving.
With more attractions being uncovered and more tourist activities being introduced annually, every visit to Catanduanes is a new adventure.

ABS-CBN, GMA Network 3rd quarter earnings decline on lower ad revenues

MEDIA companies ABS-CBN Corp. and GMA Network, Inc. reported lower earnings in third quarter, due to a slump in advertising revenues.
In a regulatory filing, ABS-CBN said its net income attributable to equity holders of the parent company dropped 19% to P776.9 million during the July to September period.
The Lopez-led media company said its third quarter revenues grew by 4% to P10.6 billion, as advertising sales fell 2% to P5.302 billion.
For the first nine months of 2018, ABS-CBN saw its attributable net income decline by 32% to P1.627 billion.
Consolidated revenues for the January to September period was flat at P29.49 billion, from P29.51 billion a year ago. Advertising revenues also dipped 3% to P14.87 billion, while consumer sales rose 3% to P14.6 billion on a 24% rise in sales of TV Plus boxes.
ABS-CBN recorded a 5% rise in direct costs and expenses during the nine-month period at P28.190 billion. This was attributed to a 8% growth in production costs at P9.56 billion and 8.4% hike in general and administrative expenses at P8.892 billion.
Meanwhile, in a regulatory filing, GMA Network reported its attributable net income went down 4% to P738.28 million during the third quarter, as revenues declined by 5% to P3.892 billion.
During the January to September period, GMA Network reported its attributable net income slumped 15% to P1.9 billion, amid 6% lower revenues to P11.142 billion. Consolidated operating expenses dipped 2% to P8.4 billion during the first nine months.
GMA Network said its year-to-date sales from television and radio airtime, which is 88% of the company’s revenues, dipped 6% to P9.845 billion.
“[T]he contraction in airtime advertising was felt across the broadcasting industry thus providing the main drag for the revenue shortfall. Nonetheless, mixed results were seen among airtime-revenue generating platforms, Radio and Regional TV operations remained steadfast, managing to pull ahead in their topline year-on-year, while Ch-7 and GNTV-11 succumbed to lukewarm sales in between periods,” it said.
PNB Securities, Inc. President Manuel Antonio G. Lisbona said the drop in earnings for both companies only shows that advertisers are shifting to online platforms.
“Looking at both companies’ stock prices even for the last 24 months, you can see that both have been declining steadily because of this. That said, both companies have also begun shifting and diversifying into the online space,” he said in a text message on Thursday.
GMA said sales from international operations, subsidiaries and other businesses led by its digital arm GMA New Media grew 2% to P1.297 billion in the nine-month period. For ABS-CBN, its digital platforms delivered consolidated revenues of P627 million, up 46% from last year. — Denise A. Valdez

Lopez Holdings nets P1.7B in July-Sept. period

LOPEZ Holdings Corp. reported a 24% increase in net income attributable to the equity holders of the parent firm of P1.74 billion during the third quarter, the holding firm said in a regulatory filing.
The higher profit comes as the Lopez group, whose subsidiaries have interests in power generation and multimedia communications, posted revenues of P32.51 billion, up 22.9% from P26.46 billion a year ago.
Of the holding firm’s revenues for the July to September period, sale of electricity accounted for nearly 86% at P27.83 billion. Real estate, and contracts and services made up 9.3% and 3.5%, respectively. Sale of merchandise contributed the rest.
Lopez Holdings posted double-digit growth in its bottom line despite the nearly 18% increase in its cost and expenses to P24.94 billion from P21.16 billion.
For the nine months to September, the firm recorded a net income attributable to the equity holders of the parent of P3.91 billion, up 23.7% from P3.16 billion in the same period last year.
Revenues during the three quarters hit P91.19 billion, higher by 17% from P77.94 billion a year ago.
Lopez Holdings attributed the period’s performance to the better financial results of the energy group under its associate First Philippine Holdings Corp. (FPH).
FPH’s net income attributed to equity holders of the parent rose by 54% while ABS-CBN Corp. reported a 35% decline in profit after registering flat revenues, a 3% slide in airtime sales, and 4% increase in costs and expenses.
FIRST GEN
Meanwhile, the Lopezes’ power generation company First Gen Corp. posted a 54.6% increase in third-quarter net income attributable to the equity holders of the parent firm of $66.18 million from $42.81 million in the same quarter last year.
Revenues from the sale of electricity during the July-September period reached $523.39 million, up 22.6% from $426.99 million in the same quarter last year. The company reports its financial data in dollars, its functional currency.
For the January-September period, First Gen recorded a net income of $151.04 million, up 50% from $100.81 million. Revenues rose 14% to $1.46 billion from $1.28 billion.
In a statement on Thursday, First Gen President and Chief Operating Officer Francis Giles B. Puno said the company’s investment in new capacity through the San Gabriel plant started serving the power needs of Manila Electric Co. (Meralco) customers in the third quarter.
“Contrary to perception, First Gen is clearly proving the price competitiveness of clean low-carbon natural gas-fired power versus more polluting coal-fired power even at full baseload dispatch,” Mr. Puno.
First Gen said recurring net income attributable to equity holders of the parent at $180 million as of end-September was 45% higher than the previous year’s $124 million. It said its natural gas platform surged 60.9% and delivered recurring earnings of $140 million versus $87 million previously.
First Gen said its newest and most modern plant, the 420-megawatt (MW) San Gabriel flex plant, benefited from markedly higher dispatch and revenues as it sold power in the spot market at attractive prices in the first half of 2018, and its full production to Meralco under its power supply agreement in the third quarter.
It said numbers were made better by lower interest expenses and higher interest income as a result of its deleveraging initiatives. Savings in interest expense offset unrealized foreign exchange losses and higher deferred taxes.
First Gen primarily utilizes clean and indigenous fuels such as natural gas, geothermal energy from steam, hydro-electric, wind and solar power. — Victor V. Saulon

DMCI unit secures contracts worth P10B

D.M. CONSUNJI, Inc. (DMCI) secured P10.6 billion worth of new contracts in the first nine months of 2018, as it was engaged mostly by private firms for building projects.
The construction arm of diversified engineering conglomerate DMCI Holdings, Inc. said the newly-signed projects pushed its order books eight percent higher to P28.5 billion, compared to the same period a year ago.
Its newly-signed projects include Ortigas and Company’s residential condominium called Connor worth P1.1 billion, STRC Apartment Ridge of ST 6747 Resources Corp. worth P1.3 billion, and the DLS College of St. Benilde Academic Sports and Dormitory Buildings, among others.
To note, ST 6747 Resources Corp. is the joint venture firm between the SM Group and tycoon George S.K. Ty’s Federal Land, Inc. for the development of a residential condominium in Makati City, on a property considered to be the last parcel of undeveloped land in the business district.
D.M. Consunji has also been tapped for the Metro Manila Skyway Stage 3 Nagtahan Rampway worth P1 billion.
The company’s major ongoing projects include the Cavite-Laguna Expressway project of MPCALA Holdings, Inc., Prima Infra Dev. Corp.’s Bued Viaduct and Roadway, LRT Line 2 East Stations under the Department of Transportation, Ortigas & Company’s Maven at Capitol Commons, and Anchor Land Holdings, Inc.’s Anchor Grandsuites.
“Right now our order book is skewed toward private sector-led construction projects but we expect more big-ticket projects under the Build, Build, Build program to come on-stream within the next few months,” D.M. Consunji President and Chief Executive Officer Jorge A. Consunji said in a statement.
The company is currently bidding for the first package of the North-South Commuter Railway (NSCR), which seeks to connect Tutuban, Manila to Malolos, Bulacan. The project will have a capacity of 100,000 passenger per hour, reducing travel time from Tutuban to Malolos to about 35 minutes from two hours before.
The project will be partially funded by Japan’s official development assistance loan signed in 2015. The government targets to start the project by next year.
“2019 will be a busier year for public construction, and we are very eager to participate in this infrastructure modernization program of the government,” Mr. Consunji said.
Earnings of D.M. Consunji rose by 19% to P343 million in the third quarter of 2018, pushing its nine-month profit 21% higher to P1.1 billion. — Arra B. Francia

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