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Semirara drags DMCI Holdings’ net income lower in Q3


By Arra B. Francia, Reporter
CONSUNJI-LED DMCI Holdings, Inc. reported a 44% drop in earnings for the third quarter of 2018, weighed down by the weakness of its coal energy business that makes up around half of its portfolio.
The diversified engineering conglomerate posted a consolidated net income of P2.3 billion from July to September, versus the P4.1 billion it realized in the same period a year ago.
This brought the listed company’s nine-month consolidated profit to P11.5 billion, 2% lower than the P11.7 billion booked last year. Without one-time gains worth P715 million from the sale of an undeveloped lot by its housing unit and other one-time costs, DMCI Holdings’ core profit was down by 8% to P10.8 billion.
Revenues meanwhile rose by 3% to P60 billion during the nine-month period.
“Semirara (Mining and Power Corp.) is down, it’s about 50% of the portfolio that’s why it spilled over to the whole group. But the other drivers are positive… all drivers are double-digit growth,” DMCI Holdings Vice-President and Senior Finance Officer Brian T. Lim told reporters in a press briefing in Taguig City late Monday.
Nine-month income contributions from SMPC fell 22% year-on-year to P5.1 billion due to heavy rains in July and August, as well as the seven-month shutdown of Southwest Luzon Power Generation Corporation (SLPGC) Unit 1, way beyond its programmed outage of around 45 days.
DMCI Holdings Chief Finance Officer Herbert M. Consunji noted that the power plant has business interruption insurance, which covers the loss of business income due to damage to the insured asset, amounting to P1 billion.
“We have collected around P300 million from that P1 billion, but what Semirara wants is to recognize the insurance when the whole of it has been paid within the year,” Mr. Consunji said during the briefing.
Mr. Consunji expects Semirara to recover from business interruptions in the fourth quarter.
Meanwhile, DMCI Homes delivered a 29% increase in income contribution to the parent to P3.4 billion. The property developer recognized a one-time gain on the sale of an undeveloped lot in Quezon City during the period. It also benefited from the 7% increase in reservation sales.
The company booked P1.5 billion from net income contributions form affiliate Maynilad Water Services, Inc., 11% higher year-on-year, due to a 2.8% uptick in bulled volume, 2.8% tariff adjustment due to inflation, and an improved consumer mix.
The construction arm through DM Consunji, Inc. saw its net income share grow by 12% to P952 million. The unit recorded higher accomplishment in building projects and further realized variation orders from projects close to completion.
DMCI Power Corp. provided P337 million, higher than 4% from last year’s P324 million. The off-grid energy business logged a 25% increase in electricity sales volume, but was dragged by lower-than-expected provisional tariff for its Aborlan bunker plant in Palawan.
For DMCI Mining Corp., net income contribution rose by 14% to P133 million, after shipping 482,762 wet metric tons of higher grade nickel ore from its old stockpile.
Sought for comment, Regina Capital Development Corp. Equities Analyst Rens V. Cruz II called DMCI Holdings’ third quarter figures “underwhelming,” but noted that full-year performance remains on track.
“(W)eakness emanated mostly from cyclical considerations. Heavy downpour in 3Q led to weaker SCC (Semirara’s ticker symbol), nickel mining earnings, while (DMCI) Homes registered a one-off in 9M17. These are mostly factors that are not expected to spill over significantly in the coming periods,” Mr. Cruz said in a mobile message.

Earnings of Gotianun-led FDC surge in 3rd quarter

FILINVEST Development Corp. (FDC) reported a 68% growth in attributable profit for the third quarter of 2018, as its banking, property, power generation, sugar, and hotel operations all posted higher revenues for the period.
In a regulatory filing, the Gotianun-led holding firm said net income climbed to P2.49 billion, against P1.48 billion generated in the same period a year ago. This followed an 11% uptick in revenues to P17.79 billion.
On a nine-month basis, FDC’s attributable profit expanded by 67% to P7.92 billion. Revenues meanwhile rose 12% to P54.24 billion.
“Our investments in power, property, and in the bank infrastructure is now being reflected in the healthy increase of FDC’s net income,” FDC President and Chief Executive Officer Josephine Gotianun-Yap.
“While we are always managing risk in our subsidiaries, adding investments in power and infrastructure further allow us a more balanced portfolio with the defensive industries recompensing the business segments that are more exposed to the ups and downs of the economic cycle.”
FDC’s property units drove its growth for the period, as Filinvest Land, Inc. (FLI) grew its net income by 14% to P4.22 billion. Revenues went up by 10% to P15.98 billion.
FLI benefited from the strength of rental revenues, which jumped 28% to P4.04 billion. This offset the flat real estate sales at P10.34 billion. The listed property developer said it remains on track to reach it 1.5-million square meter target in terms of gross leasable area by 2022.
Power unit FDC Utilities, Inc. generated P6.3 billion in revenues in the nine-month period, boosted by the 25% increase in sales from its power plant in Misamis Oriental coupled with retail electricity operations.
Listed banking subsidiary East West Banking Corp. delivered a net income of P3.2 billion, 13% lower year-on-year due to the lower contribution of wholly-owned subsidiary EastWest Rural Bank (EWRB). The rural lender suspended lending activities to teachers as it waited for new guidelines from the Department of Education.
Without EWRB, EastWest’s net income would have gone up 6% on a yearly basis.
FDC is banking on the continued growth of its property and hospitality units moving forward, with several projects in the pipeline. For instance, Filinvest Hospitality Corp. is currently constructing 1,700 rooms across eight new hotels, in addition to its existing networked of 1,591 hotel rooms.
The conglomerate is also redeveloping the former Clark Mimosa Estate into Filinvest Mimosa+Leisure estate, which strengthens its foray into leisure development.
Shares in FDC gained 0.27% or two centavos to close at P7.39 each at the stock exchange on Tuesday. — Arra B. Francia

PCC: Draft common tower policy is anti-competitive

THE Philippine Competition Commission (PCC) on Tuesday said the draft policy on common towers, crafted by the Department of Information and Communications Technology (DICT) and National Telecommunications Commission (NTC), may be anti-competitive as it allows only two tower companies to operate in the first four years of its implementation.
“Approving the draft Common Tower Policy in its current form… may raise competition concerns and be in direct contravention to the open access regime that the government is advocating for,” the PCC said in its comments on the draft memorandum circular (MC) on common towers.
“The PCC recommends that the relevant agencies review the objective of the Policy to ensure that it squarely addresses issues pertaining to the lack of necessary ICT (information and communications technology) infrastructure to improve telecommunication services in the country, as well as the lack of effective competition in the industry,” it added.
The DICT and NTC in September released the draft MC prepared by Presidential Adviser for Economic Affairs and Information Technology Communications Ramon P. Jacinto. Under the draft, the government will register at most two tower companies to handle the deployment of telecommunications infrastructure that telcos such as PLDT, Inc. and Globe Telecom, Inc. may share.
The policy is aimed at addressing the slow and inefficient rollout of towers, by allowing tower companies to focus solely on building infrastructure and ease the burden on the telcos.
But the PCC said the draft MC needs refining, as the limit it set on the number of TowerCos “would have adverse effects on market competition.”
“The PCC emphasizes that entry or potential entry to the market ensures the existence of competitive pressure, which drives the business to be more efficient, aggressive and innovative for the benefit of consumers,” it said.
It noted that the purpose of the MC was to allow telco operators to share infrastructure, and restricting registered tower companies would not solve the “wasteful duplication of network resources and multiplicity of permits, which have resulted in the slow roll-out of infrastructure and poor quality of services.”
“The PCC calls the relevant agencies to reassess the objective of (the proposed restriction),” it said.
Globe and PLDT have raised concerns over the draft MC, noting that aside from the restriction on tower companies which is anti-competitive, the policy’s intention to keep them from rolling out their own towers contradicts their congressional franchise.
DICT Acting Secretary Eliseo M. Rio, Jr. had recognized this flaw earlier, and said further reviews will be done on the draft MC to acknowledge comments from stakeholders.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

SMC’s 9-month recurring profit up 20%

DIVERSIFIED conglomerate San Miguel Corp.’s recurring profit jumped by a fifth in the nine months ending September, driven by strong sales volumes complemented by favorable selling prices.
In an investors’ presentation posted on its website, the listed company reported a recurring net income of P52.41 billion, 20% higher than the P43.78 billion it logged in the same period a year ago. This excludes the impact of foreign exchange losses.
Consolidated revenues climbed by 28% to P761.2 billion, against P597 billion in the same period a year ago.
SMC’s newly consolidated food and beverage unit, San Miguel Food and Beverage, Inc. (SMFB), grew its net income by 17% to P22.93 billion, after net sales rose 15% to P206.62 billion during the January to September period.
San Miguel Brewery, Inc. recorded P17.76 billion in earnings, 23% higher year-on-year due to a 16% uptick in net sales to P93.36 billion. Meanwhile, Ginebra San Miguel, Inc.’s profit surged by 81% to P789 million, on the back of a 17% rise in net sales to P17.92 billion.
The performance of the liquor and brewery units offset the weakness of the food group, which saw its net income fall by seven percent to P4.37 billion. Net sales however increased by 13% to P95.35 billion.
Meanwhile, Petron Corp. generated P419.86 billion at the topline, 34% higher year-on-year. This resulted to a minimal increase in earnings at 3% to P12.06 billion. The company attributed the slower bottomline growth to an “industry-wide decline in demand due to high pump prices.”
For SMC Global Power Holding Corp., net sales gained 43% to P89.11 billion. Operating income accordingly went up by 31% to P25.75 billion.
The power unit saw its consolidated off-take volume surge by 38% to 17,670 GWH, lifted by additional generation from its plants in Limay, Malita, and Masinloc, as well as higher contributions from the Sual and San Roque plants.
Net sales of SMC Infrastructure advanced by 10% to P18.13 billion, resulting in a 10% uptick in operating income to P8.91 billion. This was on the back of higher traffic volume on its operating toll roads.
The firm operates the South Luzon Expressway, Skyway Stage 1 and 2, NAIA Expressway, and the Tarlac-Pangasinan-La Union Expressway. It is currently developing big-ticket infrastructure projects such as the Skyway Stage 3, Metro Rail Transit 7, and the Bulacan Bulk Water project.
Shares in SMC shed 1.2% or P2.10 to close at P172.50 each at the stock exchange on Tuesday. — Arra B. Francia

BenCab goes punk


IN BETWEEN Benedicto “BenCab” Cabrera’s iconic Sabel and Larawan series, the National Artist had a phase when he focused on drawing punks as a form of diversion from his signature paintings in the early 1980s.
The artist told BusinessWorld that he was drawn to London’s punk subculture — their dyed hair, cool haircuts, and their unconventional fashion — “because they were colorful.”
“That was the era when they felt like they belong to a tribe — you’d have the skinheads, the rockers, the London punk, kanya kanya (different sorts). I think the punks are more approachable. The skinheads are racialists and violent,” he said, laughing, at the sidelines of the opening of his exhibition called London Punk Drawings 1981-1984 on Nov. 6.
BenCab’s 39 punk portraits will be on view until Feb. 8 at the Conrad Manila’s Gallery C.
DRAWING FROM LIFE
The artist, who was dressed in a punkish all-black outfit which include a skull T-shirt for his exhibit opening, said he met the punks in London where he lived for 13 years.
“The punks lived in squats. They’d go and sign their UB40, [an unemployment benefit form card] where they get a weekly allowance and they used the money to buy paraphernalia and dyes. I found it interesting. I asked them to pose for me and I paid them £2 per hour. They agreed because they were hard up, too. They brought their own casettes to listen to their punk music [while I drew them].”
During the years that he was in London to start his family, he did many on-the-spot portraits of the punks.
He explained that back in the 1980s, minimalism and abstract painting were “uso” (trendy), “but there was a revival for figuration. Me, I love to draw from life. In a way, it’s good to revive that because you can never remove the skill from drawing from live, the hand-to-eye coordination.”
He added that he has always loved drawing. Back in London he was inspired by other London-based artists like David Hockney, R.B. Kitaj, and Lucien Freud when it came to drawing.
Drawing from life is more challenging than painting from imagination, said the artist.
“[When you do it] from memories, you can invent, you dream, but from live, you draw the subject in front but it’s not really copying photographically, because the model usually moves, you capture the personality of the model.”
RETROSPECTIVE?
The 39 portraits in the exhibition are all from BenCab’s own collection. In his exhibition are portraits of men and women in blue or hot pink hair or mohawks, decked out in studded belts, boots, and bracelets. Some women were nude while some were braless.
“I was invited to exhibit any work here [in Conrad]. I realized that I have some drawings. I went to my studio to check and I have found I have a stock of drawings, of punk drawings. I thought ‘marami pa pala ito ah (I still had many of them), good enough for a show.’ So I proposed to them and [waited if] they would agree to show an early work. They liked it. Timely, with the Bohemian Rhapsody [referring to the Queen movie currently in theaters].”
So, after nearly 40 years, BenCab is resurrecting his collection of punk drawings. He said: “Somehow it’s good to have a retrospective. Uso na ’yun no? (Its trendy now) It’s also to show the era of that period.”
The 76-year-old National Artist said of his more than three-decade-career: “work every day.”
“Number one is to be healthy and continue your creative process. Have discipline, work every day. Sometimes I do bonsai and assemblage of things. You get a lot of pressure, lalo na (especially) when a lot of people are demanding some works from you. But you have to be happy first. I take my time, that’s why there are few works [of mine] in the current market, except in auctions which I don’t own, they are cashing in [money],” he said.
NOT THE FIRST TIME
But this isn’t the first time that the artist is doing a punk-themed exhibition. By the end of 1981, he had amassed such a large collection of punk portraits that he was able to put up a show called Punks at the Tricycle Theater Gallery in London. The following year, during one of his periodic homecomings from London to Manila, he also held a punk-themed exhibit at the Cultural Center of the Philippines’ Little Gallery. He arrived at that show decked out in a studded leather vest, a black shirt, and a studded bracelet. But the show wasn’t a success. In the words of writer Eric S. Caruncho who wrote an essay that accompanies the current exhibition: “Perhaps the art crowd didn’t know what to make of it at the time,” and the local art aficionados, he said, had a hard time reconciling BenCab’s Larawan series with European punks.
The artist said of the experience: “They were not as saleable as now. That time maybe they found it very different from what I used to do.”
But now that the punk culture has gained more local resonance and popularity, his current exhibition at Conrad might tell a different story. — Nickky Faustine P. de Guzman

PNOC risks being overtaken by other groups’ proposals for LNG hubs

PHILIPPINE National Oil Co. (PNOC) is at risk of being overtaken by other entities with complete proposals to build an integrated liquefied natural gas (LNG) hub as the state-led company continues to search for the right partner for the project, the Energy chief said.
“[It] is a risk,” Department of Energy (DoE) Secretary Alfonso G. Cusi told reporters.
Habang naghahanap sila, tumatagal sila sa pagpili ng partner nila (While they are looking, they incur delay in the selection of a partner) because they want also to make sure that the partner that they are getting are meeting the standard and will serve the country’s interest,” he added.
Mr. Cusi said the consideration for choosing the best LNG hub proposal is not hinged on a “bottomline.”
“[Ang] tinitingnan dito (What is being considered here is) what is good for the country. So if they (PNOC) fail, [it’s] not because they want to fail, but hindi sila makakuha ng tama (because they could not find the right partner),” he said, but adding he was sure PNOC would be able to find one.
Mr. Cusi’s statement comes after reports quoted him as saying that three groups have submitted proposals for an LNG hub, a project that the DoE had been pushing in part to make the country a strategic base for trading the fuel and to prepare for the expected depletion of the country’s only gas find — the Malampaya gas-to-power project off the Palawan coast.
The Energy chief said the DoE would not compromise the schedule of the LNG project by waiting for PNOC and its partner to be compliant with the financial and technical requirements.
Mr. Cusi’s comments come after Lloyds Energy Group LLC announced that it had submitted a letter of interest to PNOC to join in the selection of the agency’s joint venture partner to develop an LNG hub in Batangas Bay.
The Dubai-based firm said it has a proposal together with China Kaicheng Energy Ltd. to handle the project. It becomes the first entity to come forward with firm plans after PNOC, the DoE’s corporate arm, last month formally invited interested bidders to be its joint venture partner that will design, build, finance, operate and maintain the LNG hub.
PNOC, along with its chosen joint venture partner, will be competing with two other interested proponents, namely: the consortium between Phoenix Petroleum Philippines, Inc. and China National Offshore Oil Corp.; and Lopez-led First Gen Corp., which owns several gas-fired power plants.
The proposed LNG hub is required to serve the energy industry, giving the pioneering proponent an advantage over late entrants. Five gas-fired power plants in Batangas, with a combined capacity of 3,211 megawatts, are the main customers of the Malampaya project. The gas find is expected to be depleted starting in 2024. — Victor V. Saulon

What we can learn from Italy’s contemporary and modern museum scene

THE PHILIPPINES and Italy share the same dilemma when it comes to art: their governments doesn’t care much about it. But our shared problem stops here, because as an Italian art critic and curator who recently visited the county said, Italian politicians are only apprehensive to fully embrace contemporary art because they don’t understand it. Here, meanwhile, politicians aren’t very keen in prioritizing arts and culture at all.
“The politicians are very conservative and not aware [of contemporary arts] so politicians resist funding contemporary arts,” said Italian curator and art critic Ludovico Pratesi during a lecture about museums of contemporary art (a category which covers works from the 1960s until the present) and modern art (a category which covers works from the 1880s to the 1960s) in Italy.
Mr. Pratesi delivered his talk at the Artinformal gallery in Makati on Nov. 7. He was in the country upon the invitation of Italian Ambassador to the Philippines Giorgio Guglielmino.
The director of the Guastalla Foundation for Contemporary Art in Italy, Mr. Pratesi said there are 26 public contemporary art museums in Italy, which is one considerable difference with the art scene in the Philippines where the public art museums — the Cultural Center of the Philippines (CCP), the National Commission for Culture and the Arts (NCCA) Gallery, and the National Museum — are not dedicated solely to contemporary art.
One of Italy’s public contemporary art museums is the Maxxi Museum in Rome, which is the first Italian national institution devoted to contemporary creativity. It receives financial assistance from the state and from private sponsors.
With 300 art collections of works from the 1960s onwards, the Maxxi receives 300,000 visitors a year.
Meanwhile, the National Gallery of Modern and Contemporary Art in Rome is home to more than 20,000 art works from 1850 to 2000. Like the Maxxi, it is financed by the Italian State.
“Some millennials go here to take selfies in some unrestricted areas, and it’s okay,” said Mr. Pratesi.
He added that there’s a “great and growing interest for contemporary art in young people.”
The contemporary and modern art museums are not only found in big cities like Milan and Venice, but also in the provinces.
Home to the largest collection of Italian Futurist art, the MART is located in Rovereto, a city in Northern Italy. It opened in 2002 and has 20,000 art works dating back to the 1800. It’s financed by sponsors and the regional government.
As in the Philippines, Mr. Pratesi said the subjects of contemporary art in Italy are include cultural criticism, terrorism, and fascism, among others. “But they’re never direct. I think, probably, the last generation [of artists] is never direct, but [they work] in a lateral way.”
Also, like what’s happening locally, the grassroots galleries run by Italian artists and curators share the same financial problems when it comes to sustaining their small spaces. Mr. Pratesi said they usually close after five years of operation because of lack of funding.
While these galleries are financially challenged, there’s a growing number of foundations or privately owned museums in Italy. Their owners could be lawyers, collectors, people in the art industry, or aristocratic families, said Mr. Pratesi.
Since 2000, more than 20 (and counting) foundations have started up in Italy, including Fondazione Prada in Venice and in Milan. Owned by the Prada corporation, Fondazione Prada opened in 2015 and has more than 3,000 works from 1945 until the present.
“Culture has always been public for decades and centuries, and private things are very new. Private museums are young, but foundations are more aware of contemporary art,” said Mr. Pratesi, emphasizing again, that “politicians aren’t aware [of what contemporary art is] and are conservatives.”
The Italian guest told the Filipino audience to “invest and promote your culture, starting from museums, [and] it doesn’t matter if they’re small or big… Establish artistic culture.”
He added: “Museums are best way to promote the art of a country. They have to teach people what art is… The Philippines has to create more museums, and immediately when you do, you’re in the map.” — Nickky Faustine P. de Guzman

ATI nets P788M in Q3

ASIAN Terminals, Inc. (ATI) reported its attributable net income increased by 36% to P788 million in the third quarter, fueled by robust revenues from its operations.
The port operator said in a regulatory filing on Tuesday its total revenues in the third quarter rose 18% year-on-year to P2.55 billion.
For the nine-month period, ATI’s net income attributable to equity holders of the company jumped 24% to P2.2 billion, driven by a 14% increase in total revenues to P7.213 billion.
“Revenues from South Harbor International containerized cargo operations and Batangas Container Terminal increased from last year on account of higher container volumes, which grew by 4.2% and 18.4%, respectively,” the company said.
ATI sad operations at the Port of Batangas were boosted by an increase in volume of domestic containers, roll on-roll off (RoRo) vessels and passengers. — D.A.Valdez

Stan Lee, creator of Spider-Man and other Marvel superheroes, 95

LOS ANGELES — Stan Lee, who dreamed up Spider-Man, Iron Man, the Hulk, Black Panther, and a cavalcade of other Marvel Comics superheroes that became mythic figures in pop culture with soaring success at the movie box office, died at the age of 95, his daughter said on Monday.
As a writer and editor, Lee was key to the ascension of Marvel into a comic book titan in the 1960s when, in collaboration with artists such as Jack Kirby and Steve Ditko, he created superheroes who would enthrall generations of young readers.
“He felt an obligation to his fans to keep creating,” his daughter J.C. Lee said in a statement to Reuters. “He loved his life and he loved what he did for a living. His family loved him and his fans loved him. He was irreplaceable.”
She did not mention the circumstances of Lee’s death but the celebrity news website TMZ said an ambulance was called to his Hollywood Hills home early Monday and that he died at Cedars-Sinai Medical Center.
“Stan Lee was as extraordinary as the characters he created,” Bob Iger, Chairman and CEO of The Walt Disney Co., said in a statement. “The scale of his imagination was only exceeded by the size of his heart.”
Disney bought Marvel Entertainment in 2009 for $4 billion to expand Disney’s roster of characters, with the most iconic ones having been Lee’s handiwork.
Lee was known for his cameo roles in most Marvel films, pulling a girl away from falling debris in 2002’s Spider-Man and serving as an emcee at a strip club in 2016’s Deadpool. In the 2018 box-office hit Black Panther, which featured Lee’s leading black superhero, he was a casino patron.
“There will never be another Stan Lee,” said Chris Evans, who starred as Captain America in Marvel movies. “For decades he provided both young and old with adventure, escape, comfort, confidence, inspiration, strength, friendship and joy.”
Americans were familiar with superheroes before Lee, in part thanks to the 1938 launch of Superman by Detective Comics, the company that would become DC Comics, Marvel’s archrival.
Lee was widely credited with adding a new layer of complexity and humanity to superheroes. His characters were not made of stone — even if they appeared to have been chiseled from granite. They had love and money worries and endured tragic flaws or feelings of insecurity.
CHARACTERS WEREN’T JUST SUPER
“I felt it would be fun to learn a little about their private lives, about their personalities and show that they are human as well as super,” Lee told NPR News in 2010.
He had help in designing the superheroes but he took full ownership of promoting them.
His creations included web-slinging teenager Spider-Man, the muscle-bound Hulk, mutant outsiders The X-Men, the close-knit Fantastic Four, and the playboy-inventor Tony Stark, better known as Iron Man.
Dozens of Marvel Comics movies, with nearly all the major characters Lee created, were produced in the first decades of the 21st century, grossing more than $20 billion at theaters worldwide, according to box office analysts. The website Box Office Mojo said Black Panther had a worldwide gross of $1.34 billion.
Spider-Man is one of the most successfully licensed characters ever and he has soared through the New York skyline as a giant inflatable in the Macy’s Thanksgiving Day Parade.
Lee, as a hired hand at Marvel, received limited payback on the windfall from his characters.
In a 1998 contract, he wrestled a clause for 10% of profits from movies and TV shows with Marvel characters. In 2002, he sued to claim his share, months after Spider-Man conquered movie theaters. In a legal settlement three years later, he received a $10 million one-time payment.
Hollywood studios made superheroes the cornerstone of their strategy of producing fewer films and relying on big profits from blockbusters. Some people assumed that, as a result, Lee’s wealth had soared. He disputed that.
“I don’t have $200 million. I don’t have $150 million. I don’t have $100 million or anywhere near that,” Lee told Playboy magazine in 2014. Having grown up in the Great Depression, Lee added that he was “happy enough to get a nice paycheck and be treated well.”
In 2008, Lee was awarded the National Medal of Arts, the highest government award for creative artists.
UNCLE’S HELP
Lee was born as Stanley Martin Lieber in New York on Dec. 28, 1922, the son of Jewish immigrants from Romania. At age 17, he became an errand boy at Timely Comics, the company that would evolve into Marvel. He got the job with help from an inside connection, his uncle, according to Lee’s autobiography Excelsior!
Lee soon earned writing duties and promotions. He penned Western stories and romances, as well as superhero tales, and often wrote standing on the porch of the Long Island, New York, home he shared with his wife, actress Joan Lee, whom he married in 1947. She died in 2017.
The couple had two children, Joan Celia born in 1950 and Jan Lee who died within three days of her birth in 1953.
In 1961, Lee’s boss saw a rival publisher’s success with caped crusaders and told Lee to dream up a superhero team.
At the time, Lee felt comics were a dead-end career. But his wife urged him to give it one more shot and create the complex characters he wanted to, even if it led to his firing.
The result was the Fantastic Four. There was stretchable Mr. Fantastic, his future wife Invisible Woman, her brother the Human Torch, and strongman The Thing. They were like a devoted but dysfunctional family.
Lee involved his artists in the process of creating the story and even the characters themselves, in what would come to be known as the “Marvel Method.” It sometimes led critics to fault Lee for taking credit for ideas not entirely his own.
He described his creative process to Reuters in outlining how he came up with his character Thor, the god of thunder borrowed from Norse mythology.
“I was trying to think of something that would be totally different,” he said. “What could be bigger and even more powerful than the Hulk? And I figured why not a legendary god?”
To give Thor more rhetorical punch, Lee gave him dialogue styled after the Bible and Shakespeare.
As for Tony Stark-Iron Man, he was based on industrialist Howard Hughes, Lee told interviewers.
Lee became Marvel’s publisher in 1972. He went on the lecture circuit, moved to Los Angeles in 1980 and pursued opportunities for his characters in movies and television.
Through it all, he kept connected with fans, writing a column called “Stan’s Soapbox” in which he often slipped in his catchphrase “‘Nuff Said” or the sign-off “Excelsior!” In his later years, he gave updates via Twitter.
Lee all but parted ways with Marvel after being made chairman emeritus of the company. But even in his 80s and 90s, he was a wellspring of new projects, running a company called POW! Entertainment.
“His greatest legacy will be not only the co-creation of his characters but the way he helped to build the culture that comics have become, which is a pretty significant one,” said Robert Thompson, a pop culture expert at Syracuse University. — Reuters

DMWAI income falls 31% in July-Sept.

EARNINGS of D.M. Wenceslao & Associates, Inc. (DMWAI) was pulled down by lower land sales for the three months ending September.
In a regulatory filing, DMWAI reported its attributable profit dropped by 31% to P524.73 million in the July to September period. This followed a 41% decline in revenues to P583 million.
The company managed to deliver a 4% attributable profit increase to P1.49 billion in the nine months ending September, despite revenues slumping by a third to P1.78 billion.
DMWAI attributed the lower revenues to the absence of land sales, which is part of its long-term strategy to control land sales as the value of Aseana City increases. Aseana City is the company’s flagship mixed use development in Parañaque City.
“With the fast-rising land values in Aseana City, we have determined prudent and appropriate strategies to strengthen our foundation for future growth. These include the planned land sale in 2019 and the increased leasable gross floor areas of our pipeline projects,” DMWAI Chief Executive Officer Delfin Angelo C. Wenceslao said in a statement.
Despite the lower performance this quarter, Mr. Wenceslao said they are still on track to generate double-digit net income growth for full year 2018.
DMWAI’s total leasable gross floor area added to almost 90,000 sq.m. of leased land area reached 155,148 sq.m., while land reserves in Aseana City stood at 313,415 sq.m.
Shares in DMWAI slipped 0.77% or six centavos to close at P7.71 apiece. — Arra B. Francia

Thrift banks told to boost buffers as NPLs climb

BSP
THE CENTRAL BANK has warned smaller lenders against rising bad loans.

By Melissa Luz T. Lopez, Senior Reporter
THE BANGKO SENTRAL ng Pilipinas (BSP) has cautioned thrift banks about the rising share of problem debts in their loans, with the regulator asking players to beef up buffers against potential losses.
BSP Deputy Governor Chuchi G. Fonacier told members of the Chamber of Thrift Banks to raise their allowance for credit losses at a time when the stash of non-performing loans (NPLs) are climbing, even as the industry continues to see upbeat lending activity.
“The industry should however remain vigilant in monitoring the quality of its loan portfolio,” Ms. Fonacier told thrift bank executives on Monday.
NPLs, which cover loans left unpaid for at least 30 days past due date, surged to P47.095 billion as of end-September. This spelled a 16.8% increase from the P40.32 billion worth of soured loans logged a year ago, according to central bank data.
These are considered as risky assets given a slim chance for borrowers to actually pay for their outstanding balances. In turn, this would spell losses for lenders.
The growth in bad debts outpaced a 9.9% increase in total lending of thrift banks, with total credit lines amounting to P907.083 billion as of September.
NPLs took a 5.19% share of the banks’ total loan portfolio, higher than the 4.89% ratio logged in September 2017. Despite this, lenders scaled down their loan loss reserves to P27.114 billion from the P28.179 billion level seen the previous year.
Thrift banks mainly serve individual borrowers and small-scale firms, which are deemed riskier segments compared to corporate clients.
Consumer lending grew by 17.9% in September led by bigger auto, credit card and salary-based credit lines granted compared to a year ago.
“Even though this is far from being worrisome, we encourage the industry to continue efforts to strengthen the quality of credit risk management systems in line with expansion in lending activity,” Ms. Fonacier said.
Still, the thrift banking sector continues to show “promising” growth, the BSP official said, as industry assets posted a 6.8% annual growth to hit P1.2 trillion as of end-September. Lending also supported consumer and small-scale business segments.
Thrift lenders also remained well-funded with the industry’s risk-based capital adequacy ratio at 15.79% as of June, well above the 10% standard set by the BSP. Thrift banks also raked in a collective P12.4 billion net income during the third quarter, data showed.

What happens when a star artist dies without heirs, leaving millions on the line


IN 1961, Mark Tobey, a Wisconsin-born, Basel-based painter became the first non-French artist ever to get a solo show at France’s prestigious Musée des Arts Décoratifs. It was “the one man show of the season,” wrote New Yorker correspondent Janet Flanner. She quoted a critic in the Parisian magazine Preuves, who called Tobey “perhaps the most important painter of our epoch.”
A year later, William C. Seitz, a curator of painting and sculpture at MoMA, organized a Tobey show in New York. In his forward to the show’s catalogue, Seitz classified Tobey as a precursor to the likes of Jackson Pollock. “At present,” he wrote, “it would appear Tobey is even more highly regarded abroad than he is at home.”
Nearly 60 years later, Pollock is still a household name. Tobey, who died in 1976, is rarely regarded at all.
He hasn’t had a solo museum exhibition in New York in more than 40 years, and major works by Tobey rarely come on the open market. “There haven’t been big museum shows or gallery shows,” says dealer Craig Starr. “Anyone who has great taste and sees his best work would want it, but it’s not available.”
Tobey’s reputation has begun to flicker back to life. Last year, the Peggy Guggenheim Collection in Venice held a retrospective of Tobey’s work, the first in Europe in nearly 20 years. It then traveled to the Addison Gallery of American Art in Andover, Mass. In June, one of his paintings sold for a record-breaking $1.6 million at Sotheby’s in Paris, double his previous auction record.
In October, Pace Gallery in New York opened a show of Tobey’s art that will run through Jan. 12. “It’s a very mysterious market, because things rarely come to auction,” says Joe Baptista, the Pace dealer who spent two years organizing the show. “But I’m hoping with the exhibition that beyond the market, we’re allowing people to get intimate with a large body of work and really get a sense of who Tobey is—and what his contribution is.”
INTERNATIONAL PROMINENCE
Tobey was born in Centerville, Wisc., in 1890, and moved to New York in 1911. He worked as both an illustrator and an artist until 1922, at which point he moved to Seattle. By 1935, he’d developed his signature “white writing” style, which influential critic Clement Greenberg described as a “calligraphic, tightly meshed interlacing of white lines which build up to a vertical, rectangular mass reaching almost to the edges of the frame.”
It was the white writing style that made Tobey famous. Jackson Pollock saw it at New York’s Willard Gallery in 1944 and started his signature “drip” paintings a few years later.
By 1955, Tobey had reached what Seitz, the MoMA curator, called “international prominence.” In due course, Tobey moved to Basel, Switzerland, and lived in what the New York Times described as a “fortress-like old mansion.” When he died there in 1976, a Times obituary claimed that “by many, senior Europeans he was regarded as the greatest American painter since James McNeill Whistler.”
The same obituary noted that in Tobey’s later years, he was “blessed with an ideally sensitive secretary and companion,” a man named Mark Ritter who inherited the bulk of the art that was in Tobey’s Basel house at the time of his death. The rest of Tobey’s estate and papers were left to the Seattle Art Museum. (The museum didn’t respond to requests for comment).
Tobey’s primary European representation was the powerful dealer Ernst Beyeler; in New York, Marian Willard Johnson, who ran the namesake Willard Gallery, started representing Tobey in 1944. Other galleries in Europe also received work directly from Tobey, including Galerie Alice Pauli in Lausanne, Switzerland, and Galerie Jeanne Bucher in Paris.
Eventually, Tobey’s primary gallerists began to age out of the market. Johnson retired in 1970, and Beyeler became increasingly preoccupied with his museum, the Fondation Beyeler, which opened in 1997. (Beyeler died in 2010.) The last solo Tobey show at the Galerie Beyeler was in 1991.
Slowly, with no direct heirs to advocate for his legacy and no gallery devoted to authenticating and advocating for his work, Tobey’s market faced a gradual crisis of authority.
Multiple dealers tried to step in, including Achim Moeller, a German dealer based in New York, and Heiner Hachmeister, a German dealer based in Muenster, Germany.
POWER VACUUM
The process of authentication — literally saying whether or not an artwork is by a specific artist — is a critical component of any major artist’s market. Auction houses and dealers are hesitant to sell an artwork without one, simply because the reputational damage of selling a fake far outweighs the benefit of whatever profit they might get from the sale.
For most of Tobey’s career, “there was no difficulty authenticating pieces,” Hachmeister explains. “Some gallerists like Beyeler worked with him very intensely, but Beyeler never did written authentications. Someone would come into his gallery, show him a piece to ask if it was authentic, and he gave a verbal yes or no.”
Both Hachmeister and Moeller have their own Tobey-related organizations. Hachmeister leads the Committee Mark Tobey, which “promotes the work of the artist in initiating exhibitions in art institutions and publications about [his] life and work.” The committee was founded in 2006, and is currently compiling a catalogue raisonné, which would be a complete, official list of every work Tobey created.
Hachmeister has collected and sold works by Tobey for more than 40 years, and says he founded the committee based on collectors’ requests. While Hachmeister never met Tobey, “I know many people who visited him when he lived in Basel,” he says. “One person on our committee was at Tobey’s bed when he died. It was a long life of friendship.”
Moeller, on the other hand, has the Mark Tobey Project, which was established in 2007.
Moeller became involved with the Mark Tobey market through Whitney Museum curator Paul Cummings, who was in the process of organizing a Tobey biography and catalogue raisonné when he died of a stroke. “When Cummings unexpectedly died in 1997 at the age of 64, his family asked me if I would take over his archive, which I did,” Moeller says.
Eventually, Moeller says people began to seek him out. “It had become public knowledge that I had this resource,” he says. “And after I had enough time to familiarize myself with the artist’s life and work, the major auction houses began asking for my opinion regarding the authenticity of works.”
A FIGHT FOR LEGITIMACY
The Tobey market has been dogged by accusations of forgery and fraud. Moeller asserts that “by all accounts, [Tobey] showed some signs of senility towards the end of his life,” and that many of Tobey’s late works “all look pretty atypical, or at least very bad, so there’s a gray zone in regards to determining authenticity.”
In addition, Moeller also asserts that the Tobey market is rife with outright forgeries. The problem is so acute, he says, that “one-third of the works that come our way are not by the artist, in our opinion.”
This year, he says his gallery rejected five out of 13 works that came his way as fakes. “I can only tell you that if somebody doesn’t want my opinion, it’s fine with me, and they can go to the other fellow,” he says.
The other fellow, in this case, is Hachmeister, who disagrees with Moeller on virtually every point, starting with Tobey’s purported senility. “He was clear in his head until his death,” says Hachmeister. And the so-called gray area surrounding Tobey’s late work? “It’s a rumor,” Hachmeister says. “In my life, I’ve seen around 200 or 300 pieces” from the period, all of which, he says, are legitimate.
Hachmeister says that allegations delegitimizing Tobey’s late work have been brushed aside by experts. He says that the allegations, in effect, are an attempt to ruin his reputation, and that while Tobey’s late work might not look like his mid-career work, that’s simply because Tobey was getting older and his style was evolving. “Artists who know that their life is nearly finished make a lot of things, because they want to have quantity,” he says. “It’s the same with Tobey.”
Hachmeister goes on to say that Moeller tried to join his committee. “We refused,” he says. “Because we know him. And we said ‘OK, you can come in, but you have to open your archive, and he refused to.” (“This is definitely not true,” says Moeller. “I was specifically invited by Hachmeister to join his committee but declined.”)
More seriously, Hachmeister says Moeller has encountered legitimate works by Tobey but refused to authenticate them out of personal animosity. “It is my opinion that Moeller knowingly declined to authenticate legitimate Tobey artworks,” Hachmeister wrote in an e-mail. (“I have never declined to give an opinion when an application has been submitted,” Moeller says. “I am committed to maintaining the integrity of the artist’s legacy and would never put that in jeopardy for personal reasons.”)
Moeller has allegations of his own, namely that Hachmeister has gone too far in the opposite direction and authenticated forgeries.
Moeller points to a criminal case in 2015, when an art forger named Lawrence Ulvi sold three fake works by Mark Tobey; Hachmeister authenticated one of the works based on a photograph, but then revoked the authentication when he saw it in person. Ulvi pleaded guilty and was sentenced to a year in prison. “I worked with the FBI,” says Hachmeister. “Once, I got some things from a dealer [for authentication], and when I managed to get more [information], I saw it was wrong,” he continues. “The FBI put an end to it.”
Occasionally, Moeller says, he has directly contradicted Hachmeister. “Recently, there was [an artwork by Tobey, consigned by Hachmeister] at one of the major auction houses, and I had to stop it because it was a fake. So the auction house withdrew it.”
Hachmeister acknowledges the incident and alleges Moeller was acting in bad faith. “It is a fact that I had three works at once in a Sotheby’s auction, and [initially] Moeller made positive certificates for all” of the work, Hachmeister wrote in an e-mail. “Half an hour before the auction began, he canceled two of his own certificates. It was not because of his doubts, but to damage me.”
THE MARKET’S TAKE
Dealers say that all the back-and-forth allegations have dampened demand in Tobey’s market. “With artworks being pulled from auction, and [questions] about who’s representing the artist, and who’s handling the estate — I think it became very difficult for exhibitions to be organized,” Baptista, the Pace dealer, says.
“Let’s put it in a positive way,” says Stefano Moreni, the head of the contemporary department at Sotheby’s France, which sold the record-breaking Tobey painting in June. “Whenever we have a work that’s well-documented, and where the history is very clear, it has an extremely positive effect on its value.”
According to Artnet, Tobey’s work has come up publicly to auction almost 3,000 times since 1985. And even though it’s not as expensive as a Pollock or De Kooning, whose paintings can sell for tens of millions, Tobey’s art isn’t cheap.
At the Pace show, works on paper range from $85,000 to $950,000, and paintings range from $350,000 to $5 million. “There is a market for private sales that I’m aware of, with paintings that sell at $4 million to $4.5 million,” Baptista says.
There are also signs that the Tobey market is gaining steam. By the close of this year, 61 artworks are set to come to auction, according to Artnet. Several have soared past their high estimates. The work New Crescent, from 1953, for instance, had a high estimate of £150,000 ($195,000) and sold for just under £400,000 at Christie’s in London. At Christie’s New York in May, his 1956 painting Earth’s Circus sold for $187,500, above its high estimate of $50,000.
And then there was the work Autumnal Fire, from 1965, which carried a high estimate of €300,000 at Sotheby’s Paris in June and sold for four times that amount; with premium, its total was slightly less than €1.4 million. The painting, Moreni says, had a sterling provenance (one photograph shows Tobey standing next to the work) and an unusual size. “We had nine or 10 bidders,” he says. “And when you see that [level of interest], you can see you really have something outstanding.”
But Moreni is slightly less bullish about the Tobey market as a whole. “Market-wise, his works can do extremely well when all the correct data are there — good quality, extremely sound provenance, maybe its size, etc.,” he says. “It’s really reassuring to see that when you have a really good piece, collectors are there.”
It’s proof, he says, that “sometimes, collectors and the market are wiser than we think.” — Bloomberg

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