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Vista Land profits grow by 16% in Q3

VISTA LAND & Lifescapes, Inc. (VLL) grew its attributable profit by 16% in the third quarter of 2018, boosted by the double-digit increase in both its housing and rental businesses.
In a regulatory filing, the Villar-led property developer posted a net income attributable to the parent of P2.99 billion, better than the previous year’s P2.57 billion in the same period. Revenues stood at P9.91 billion, 15% higher year-on-year.
This pushed the listed firm’s nine-month attributable profit 16% higher to P8.09 billion, on the back of a 16% uptick in revenues to P31.05 billion.
“We are very pleased with our nine-month performance and we are well poised to achieve our revised growth targets for the year,” VLL Chairman Manuel B. Villar, Jr. said in a statement.
The company delivered a 16% increase in real estate revenues to P20.8 billion for the nine-month period, which accounted for 83% of revenues. Sales from the Camella brand contributed bulk of real estate revenues at 80%, followed by Vista Residences, Crown Asia, and Brittany.
Leasing income meanwhile provided the remaining 17% of revenues, rising 19% to P5.2 billion.
VLL’s commercial space hit 1.16 million square meters across 26 malls, 50 commercial centers, and seven offices by end-September.
Reservation sales went up by 17% to P57 billion, which the company noted is faster than its 12% sales growth guidance for the entire year.
“We’re cautiously optimistic about Q4. Based on Q3 we still see the trend continue. Our financial targets, we will track that because we are realizing revenues now that were sales before,” VLL President and Chief Executive Officer Manuel Paolo A. Villar said in a press briefing in Makati on Wednesday.
The company has already spent P34.9 billion in capital expenditures from January to September, from its P50-billion budget for the year.
VLL plans to launch more than P10 billion worth of residential projects in the fourth quarter, in addition to the P38 billion it unveiled in the first nine months.
For its leasing portfolio, the company looks to add another 240,000 sq.m. to its GFA in the final quarter, in order to hit its target of 1.4 million sq.m. this year.
VLL is expecting a 15-17% growth in earnings this year, as well as a 15-17% growth in reservation sales.
Shares in VLL dropped by 1.14% or six centavos to close at P5.20 each at the stock exchange on Wednesday. — Arra B. Francia

Metro Pacific says on track to hit P15-billion core profit this year

By Arra B. Francia, Reporter
METRO PACIFIC Investments Corp. (MPIC) is on track to end the year with around P15 billion in core net income, a single-digit increase from year-ago figures due to the expected slower growth in the fourth quarter.
“We’re saying that we think that fourth quarter will be pretty flat, and so you can see our core net income now is about P12 billion. And the last quarter added on to that you’ll get a number that’s roughly about P15 billion,” MPIC Chief Finance Officer David J. Nicol said in a press briefing in Makati City on Wednesday.
If realized, this would be a 6% increase from MPIC’s core net income of P14.1 billion posted in 2017.
“I expect minimal growth in Q4 core net income compared with the same quarter last year. We are working hard but constructively with government to resolve pending issues involving tariffs and rights of way,” MPIC Chairman Manuel V. Pangilinan said in a statement, referring to the government’s inaction on Metro Pacific Tollways Corp.’s (MPTC) pending petitions to raise toll fees and Light Rail Manila Corp.’s (LRMC) move to hike fares at the Light Rail Transit Line 1.
Problems involving right of way acquisition has also plagued some of the company’s infrastructure projects.
MPIC improved its core profit by eight percent to P12.2 billion in the first nine months of 2018, driven by its larger power portfolio, continued traffic growth in its toll roads, and the higher volume growth for its water unit.
System-wide revenues stood at P302.9 billion, 8% higher year-on-year.
The infrastructure conglomerate however noted growth was slower in the third quarter, particularly for the power unit due to weather disturbances. It noted that volume growth for power distributed in Luzon grew by only 2% in the third quarter, versus a 5% year-to-date growth. Meanwhile, power sold in the Visayas dropped by 3%.
Domestic toll road traffic meanwhile inched up by 4% in the third quarter, versus a 7% figure for the first nine months.
“The third quarter has showed a slowing down, or maybe a loss of some momentum… pretty much across the board there has been a reduction in volumes, but still quite strong for the year,” MPIC President and Chief Executive Officer Jose Ma. K. Lim said during the briefing.
“Partly weather disturbances, I think in the case of toll roads as well, because in the case of severe storms in some cases the power supply to a certain community is going to be shut off for safety. Part of it is also cooler temperatures,” Mr. Lim added.
MPIC’s power unit accounted for 55% of its core net income at 55% or P8.5 billion, followed by the toll roads business which provided 21% or P3.3 billion. Water generated 20% or P3 billion, hospitals contributed 4% or P586 million, while the Rail, Logistics, and Systems group posted P26 million.
The company’s power unit consists of the Manila Electric Company (Meralco) and Global Business Power (GBP). Meralco’s core profit went up by 9% to P16.7 billion during the period, thanks to a 5% uptick in energy sales backed by slightly lower tariffs.
Meralco’s better performance offset the 9% decline in GBP’s core net income to P1.9 billion, weighed down by depreciation expenses for its Panay power plant and higher costs, among others.
For the toll roads unit, MPTC recorded a 55% increase in system-wide vehicle entries to 916,169 per day, boosted by the contribution of PT Nusantara Infrastructure Tbk, its investment in Indonesia.
In the Philippines, average daily vehicle entries across the North Luzon Expressway, Cavite Expressway, and Subic-Clark-Tarlac Expressway went up by 7% to 471,634.
The water unit through mostly Maynilad Water Services, Inc. booked a 10% increase to P6.1 billion, backed by a 6% increase in revenues to P16.6 billion.
Meanwhile, the hospital unit benefited from its investments in Jesus Delgado Memorial Hospital in Quezon City and St. Elizabeth Hospital in General Santos City last year. It recorded a 11% increase in out-patient visits and 15% uptick for in-patient admissions.
The railway unit through LRMC increased ridership at the LRT-1 by 5% to 452,892 by end-September.
Papa Securities Corp. Equity Investment Analyst Emille Martin Munsayac noted that MPIC’s earnings result is in line with their full-year estimate at 73%, but is ahead of consensus’ 83%.
“Revenues came in line with expectations but higher financing costs eased the bottomline. MPIC is guiding for minimal growth in 4Q,” Mr. Munsayac said in a text message.
Shares in MPIC slipped by 0.82% or four centavos to close at P4.86 each on Wednesday.
MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which it controls.

Power rates to rise in Nov.

AFTER two straight months of decrease, power rates in November will rise by P0.1135 per kilowatt-hour (kWh) largely because of the higher charges from the wholesale electricity spot market, Manila Electric Co. (Meralco) said on Wednesday.
For those using 200-kWh, which represents the consumption of a typical household, the increase to P10.0901 per kWh from P9.9766 per kWh in October means a rise of P23 in their total monthly bill this month.
The rise comes after an uptick in power demand coupled by a rise in Malampaya gas prices. It also follows the rate reduction in September and October totalling P0.25 per kWh.
Consumers using 300 kWh, 400 kWh and 500 kWh can expect their monthly electricity bills to rise by P34.05, P45.40 and P56.75, respectively. Still, Meralco said since April this year, electricity rates registered a net decrease of P0.46 per kWh.
“From P5.1908 per kWh last month, the generation charge for November went up to P5.2725 per kWh, an increase of P0.0817 per kWh,” the listed company said.
The distribution utility, which serves 6.542 million customers, said the higher generation during the period was due to the P1.3545 per kWh higher charges at the wholesale electricity spot market (WESM).
“WESM charges went up due to higher power demand in Luzon resulting from warmer temperature in October. The share of WESM purchases to Meralco’s total requirement this month was 16.6%,” the company said.
In contrast, the cost of power from independent power producers (IPP) and power supply agreements (PSA) dropped by P0.1450 per kWh and P0.5611 per kWh, respectively.
“A stronger peso offset an increase due to higher Malampaya natural gas prices as a result of the quarterly repricing to reflect recent movement of crude oil prices in the world market,” Meralco said.
Power plants using Malampaya natural gas provided 61% of the distribution utility’s requirements. These are First Gas Power Corp.’s Sta. Rita and San Lorenzo power plants; First NatGas Power Corp.’s San Gabriel plant; and the Ilijan plant under administrator South Premier Power Corp.
For November, the share of IPP and PSA purchases to Meralco’s total requirement is 42.6% and 40.8%, respectively.
During the month, transmission, taxes and other charges also increased. For residential customers, the transmission charge rose by P0.0021 per kWh due to an increase in the ancillary service charges of system operator National Grid Corporation of the Philippines (NGCP). Taxes and other charges increased by P0.0297 per kWh.
“Meralco’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 40 months, after these registered reductions in July 2015,” the company said, adding that it does not earn from the pass-through charges, such as the generation and transmission charges.
The payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the NGCP. Taxes and other public policy charges, including the feed-in tariff allowance, are remitted to the government.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Victor V. Saulon

Sky-high dining

SORRY, but your industrial-inspired restaurants will have to take a backseat this Christmas. BusinessWorld just had a preview of Christmas dinner at Discovery Suites’ Hangar 43, and let me tell you, dining with a view filled with real cranes and cables, and actual buildings and city lights, concrete and exposed pipes won’t look the same anymore.
Because of complications created by towers surrounding the Discovery Suites building in the Ortigas area, the helipad on the 43rd floor of the hotel hasn’t been operational for quite some time. “It’s hard to be innovative these days. Because we have this asset that wasn’t being used, we thought, ‘Why not?,’” said Angela Padilla, marketing communications director for the Hotel.
The helipad has been used at least twice before for Valentine’s Day dinners, but due to numerous requests, the hotel has decided to open it up for Christmas parties and other occasions, the first booking available on Nov. 26.
The helipad, called Hangar 43, is available for a maximum of 35 persons at rates between P90,000 to P110,000 net. Three menu packages are available: Barbecue, Holiday, and Asian, and will include centerpieces, one round of iced tea or soda, a sound system, and complimentary parking for 10% of the guests.
As well, the hotel’s renowned restaurant, 22 Prime, will be offering pop-up dinners at the top floor on all the Saturdays of December (seats are limited).
(For those who still want the view but are uneasy about rooftop dining, the hotel has more function areas at the 41st and 42nd floors which also have great views of the city. And since they are not limited by the edge of the roof, these areas have bigger floor areas and can accommodate bigger groups of up to 120 persons.)
“The view is something you don’t really get anywhere else,” said Ms. Padilla.
Some caveats from us though: the elevators at the building only go up until the 41st floor, so you’ll have to take two flights of stairs to get there. No kids below 15 are allowed, and the venue closes at 10 p.m.; all for safety reasons. For other concerns about becoming a bit too giddy while on the roof of a skyscraper, security officers are posted throughout.
For bookings and inquiries on the Christmas party packages and pop-up holiday dinners, call 719-8888, or visit www.discoverysuites.com. — Joseph L. Garcia

Manila Water posts flat earnings

MANILA Water Co., Inc. reported a 1% increase in net income as of September this year to P4.93 billion from P4.89 billion in the same period last year, the Ayala-led company told the stock exchange on Wednesday.
The growth during the nine-month period comes after the company recorded a 7% increase in revenues to P14.43 billion, and a 45% growth in other income to P944 million.
Manila Water’s other income include its equity share in the net income of associates at P515 million, up nearly 83% from P282 million previously.
The company did not report its separate figures for the third quarter.
Manila Water, which holds the water concession in greater Manila’s eastern side, registered a cost of sales and operating expenses of P5.94 billion, 21% higher compared with the previous year’s P4.90 billion.
Earnings before interest, tax, depreciation and amortization (EBITDA) reached P9.43 billion, up 3% from P9.19 billion. This translates to an EBITDA margin of 65% as against 68% in the previous year.
Manila Water’s report comes after it disclosed last month new projects, including the construction of a water supply system in San Fabian town in Pangasinan province following the grant of a franchise by municipal officials.
The project, which will be undertaken by subsidiary Manila Water Philippine Ventures, Inc., will have a capital expenditure of around P742 million. It is expected to be operational by 2019.
The franchise follows Manila Water’s announcement that the same unit received the notice of award from the Tanauan Water District for the implementation of a joint venture project for the design, improvement, upgrade, rehabilitation and expansion of the town’s water supply and sanitation facilities.
On Wednesday, shares in Manila Water slipped 0.19% to close at P25.80 each. — Victor V. Saulon

Is this the bagoong of the mountains?

By Raymond A. Macapagal
IN MANY coastal communities of the Philippines, bagoong is an indispensable food item. This fermented mixture of salt and seafood (small fish or shrimp) keeps for months, assuring families of a tasty ulam (viand) during the lean fishing season when habagat winds, meaning the southwest monsoon, tear through the seas. Its intense saltiness helps it go a long way — one can eat a plateful of rice with just a spoonful of bagoong! Many weeks of fermentation unlock the umami-rich elements in the briny seafood that served as the flavor enhancer in soups and stir-fries long before the advent of monosodium glutamate powder or vetsin. Bagoong, however, is not unique to the Philippines. We share this fermented seafood culture with many of our neighbors like Thailand (where bagoong is called khapi), Cambodia (pra hok), Vietnam (mam ruoc), Malaysia (belachan), and Indonesia (terasi).
Human ecologist Kenneth Ruddle and cultural anthropologist Naomichi Ishige, in their 2010 article on the fermented fish products of Southeast Asia1, describe two types of bagoong: the shiokara type and the comminuted type. The first type, borrowing a traditional Japanese term, refers to highly salted whole fish like the padas of Pangasinan, which uses juvenile samaral (rabbitfish). The second type refers to the fine or ground-up paste like the ubiquitous bagoong alamang or guinamos, made from tiny shrimp and krill. Indeed, most people know bagoong to be made of seafood. But in the high mountains where fish or shrimp can hardly be found, do the people there also make some sort of bagoong?
The answer might be “no” if we restrict our definition of bagoong to seafood. In 1991, however, Perlito I. Ibarra and his colleagues at the University of the Philippines in Los Baños, successfully made bagoong, and its customary liquid by-product patis, from carabeef. If we expand the scope of raw ingredients to include other terrestrial animals then perhaps the pinayt of Batad may be considered a kind of bagoong.
All throughout the Cordillera mountain range, the indigenous peoples have developed various ways to preserve their meat. Because large animal slaughters only happen on rare occasions, the surplus meat from great feasts must be stored and preserved for the longest possible time. For example, the people of Sagada have the smoked pork jowl called etag. Bontoc has its sundried salt pork inasin. Kiangan has pinunnog, a smoked sausage. Most of these preserved meats are dry, and there is very little fermentation that happens. In Batad, a picturesque rice-terraced village in the province of Ifugao, there is the moist, fermented pinayt. It can best be described as a bagoong made of pork.
In the decade or so that I, a city-dwelling Tagalog, have been doing cultural work in the UNESCO World Heritage Cordillera landscape, I have mostly been used to eating their simple, almost primeval cuisine. There is inlagim, a smoky native chicken soup that derives its flavor from a fiery de-feathering process. But this rudimentary tinola (with no ginger, no chili leaves, no green papaya such as I am accustomed to) is served only on special days. Most of the time, we just eat legumes like balatong (mung beans) and kardis (pigeon peas) boiled with a little salt. I had thought there was nothing more to this ancient rice-centric montane food culture. That is, until one day when my neighbor Tito Juan brought out a thick bamboo tube hidden amongst his heirloom ceramic wine jars. As he carefully removed the banana leaf covering, an overwhelming putrid odor filled the air below his hut where we were drinking cuatro cantos, gin in a four-cornered bottle.
Mun-akhub?” He asked if it smelled bad. My contorted face answered his question all too demonstratively. He sniffed again, and his contented countenance made me think that this was the odor he was looking for. “Pinayt hete,” he said while emptying the contents onto a basin then rinsing off the slippery liquid, and perhaps more than a few writhing maggots. As he cut the gray-brown meat into cubes, a bright red tocino-like interior was revealed. I picked up a piece to investigate. The meat was falling apart like an over-tenderized, aged, malodorous steak. As Tito Juan boiled the pork with balatong, a familiar scent wafted in the air. It was the smell of my local palengke fish section in San Juan City around noontime, when the market fishmongers open and clean their jars of raw fermented alamang.
Just like shiokara, pinayt is heavily salted chunks of pork that are placed in sealed bamboo containers and left to ferment for weeks. But it is not just any kind of pork. It has to come from naturally raised swine untainted by antibiotics and commercial feeds. Artificial ingredients tend to give the pork an unsavory flavor, or prevent the growth of the desired microbes. The people of Batad prefer their native p’ha-p’huy (pig) fed with giant taro corms and wild banana trunks. While the salting of the meat seems to be a straightforward process, the villagers believe that some people (like Tito Juan, and the noisy old bachelor Pawit) do it better than others. And that there is an art to it. Unlike the everyday bagoong, pinayt is a special dish, sometimes used as offerings in place of culled chickens in rituals. It is neither a side dish nor a condiment; it is given central importance as a viand in a meal. Its strong salty taste also assures that a lot of rice may be flavored with only a small amount of pinayt. Thus, pinayt can be shared with many people during community events and rituals.
As the mung beans cook, the pinayt in the kaldero (pot) all but disintegrates. We ladle a serving of the mushy soup onto our warm rice of the tinawon variety. Just as with the lowland shrimp paste, the raw putrefaction of pinayt mellows into a rich savoriness with some cooking. My palate recognizes that gamey, salty umami in the soup. I then realize that there, in a tiny mountain hamlet hundreds of kilometers away from the ocean, I might just have discovered the bagoong of the mountains.

Quezon City launches mobile app on ordinances

THE QUEZON CITY local government has launched an online database of ordinances accessible via a mobile application as it aims to raise awareness about the city’s rules.
Batas QC is the first city-based database, which targets to counter ordinance violations by educating residents about the regulations and corresponding penalties.
The app, which is available for download on the Google Play Store for Android users and via www.batasqc.com for non-Android phones, provides users with a summary of QC ordinances.
Users can type the ordinance they are looking for through the app’s search bar, which will bring up its summary and the corresponding penalties for violations. Links to the full text of ordinances on the QC Council website are also provided.
The app likewise categorizes ordinances according to their nature, which can be refined through filters.
Aside from ordinances, users can also view announcements like schedules of events, meetings, and infographics, among others.
Batas QC was developed by Dexter Feliciano, the founder and CEO of Thinc Office Corp. which was also behind the online legal resource MyLegalWhiz.
“The purpose of the app is for you to be informed and inform the enforcers to implement the law,” Mr. Feliciano said during the official launch of the app on Tuesday.
“You don’t need to read the whole text of the ordinance. Sinummarize po nila para mas maintindihan ng ordinaryong tao (It was summarized in layman’s terms), and even the enforcers, hindi na sila parang naghahanap… Ito makikita mo na agad (they do not need to search anymore. Through the app, they can view it immediately)… Instead of going to the internet, one click, isang type…kita mo ‘yung (by just typing, you can see the) description and the penalties,” Mr. Feliciano explained.
“This is the first user-friendly, city-based database that everyone can easily access, and it aims to counter ordinance violations by educating residents on the penalties they will be incurring,” Quezon City Vice Mayor Ma. Josefina G. Belmonte said in a speech during the launch.
According to the National Capital Region Police Office, the Quezon City Police District had the highest number of violators at 262,847 or 58.4% of the total arrests for ordinance penalties in Metro Manila from June 13 to Nov. 2 of this year.
Aside from awareness, Ms. Belmonte said the app also promotes good governance as this provides transparency on the ordinances and the penalties, which educates citizens and helps hold agencies accountable for their actions.
During Tuesday’s launch, the Quezon City government distributed phones and tablets with the Batas QC app to the city’s Department of Public Order and Safety, Environment Protection and Waste Management Department, barangay councils, and the Sangguniang Kabataan, among others.
The official said the app will be updated weekly to add new ordinances passed in their weekly council meetings. — VMPG

ICTSI income rises 22% in 3rd quarter

INTERNATIONAL Container Terminal Services, Inc. reported a 22% rise in earnings in the third quarter.

INTERNATIONAL Container Terminal Services, Inc. (ICTSI) posted a 22% increase in its net attributable income in the third quarter to $55.62 million, fuelled by higher revenues from port operations.
In a statement, ICTSI said its attributable net income for the January to September period stood at $153.29 million, up 3% from in the same period last year.
The company attributed its financial performance to robust growth in operating income from organic terminals; a lower share in the net loss at Sociedad Puerto Industrial Aguadulce S.A. in Buenaventura, Colombia; and a $2.8 million non-recurring gain from the pre-termination of interest rate swap related to the pre-payment of a project finance loan at its terminal in Manzanillo, Mexico.
However, the new terminals and a $7.5 million non-recurring gain on the termination of the sub-concession agreement in Nigeria weighed on ICTSI’s bottomline.
Revenues from port operations grew by 9% to $343.96 million in the three-month period ending September, and by 10% for the first nine months to $1 billion.
ICTSI said total consolidated throughput rose 6% at 2,438,136 twenty-foot equivalent units (TEUs) in the third quarter, bringing the nine-month figure 5% higher to 7,152,392 TEUs.
“The increase in volume was primarily due to improvement in trade activities at most of the Company’s terminal locations and the contribution of new terminals in Lae and Motukea in Papua New Guinea, and Melbourne, Australia. Excluding the new terminals, consolidated volume would have increased by 2% (in the first nine months of 2018),” it said in a statement.
The Razon-led port operator said the increase in volume handled during the third quarter was observed across the different locations where it operates, namely in Asia (9.7%), Americas (3.1%) and Europe, Middle East and Africa (1.8%). — D.A.Valdez

Michelin awards stars to 76 NYC restaurants

MICHELIN handed out its coveted stars to 76 restaurants in New York City in its 2019 guide on Tuesday, four more than last year, boosting the Big Apple’s reputation as a global destination for its diverse and innovative culinary offerings.
The new city restaurants that achieved the distinction included two named after legendary French chef Joël Robuchon, who died in August.
Michelin praised the first-time “starred” establishments for top-notch techniques or innovative twists on Asian, French, and Mexican cuisines.
“New York is one of the leading culinary cities worldwide,” said Gwendal Poullennec, international director of the Michelin Guide. “It has a very vibrant culinary scene.”
Michelin will release the latest edition of its New York City eating guide on Thursday.
Michelin’s grading system uses anonymous reviewers in 28 countries. Some argue it is rigid and overlooks some restaurants that critics and diners praise.
The restaurant rater awarded its highest ranking of three stars to the same five New York establishments as last year for their “exceptional cuisine, worth a special journey”: Chef’s Table at Brooklyn Fare, Eleven Madison Park, Le Bernardin, Masa, and Per Se.
But New York will still likely lag San Francisco in the number of three-star restaurants for a second year. San Francisco and the wine-producing regions of Napa and Sonoma had seven of last year, the most of any US cities.
Michelin will release the 2019 San Francisco guide later this month.
Michelin’s three-star rating, coveted by chefs and restaurateurs, is rare with just over 100 establishments around the world holding that distinction.
Fifteen New York restaurants earned Michelin’s two-star rating for their “excellent cuisine, worth a detour,” up from 11 last year.
Aquavit, Aska, Atera, Blanca, Daniel, Jean-Georges, Jungsik Ko, Marea, The Modern, and Sushi Ginza Onodera kept their two-star status. They were joined by Gabriel Kreuther, Ichimura at Uchū, and L’Atelier de Joël Robuchon.
Tetsu Basement, which Michelin gave two stars, was closed in October in a conversion to a raw seafood restaurant from a meat-focused eatery.
Michelin’s reviewers placed 56 establishments in the one-star category for their “high quality cooking, worth a stop,” the same number as the year before. — Reuters

ANI inks deal with China’s SinoChem

AGRINURTURE, Inc. (ANI) signed a $37.6-million supply deal with Beijing-based conglomerate SinoChem.
In a statement, the listed company said SinoChem will supply affordable fertilizers to ANI, as well as buy tropical fruits from ANI’s contract growers for the next three years.
The agreement, which was signed by ANI President, CEO and Chairman Antonio L. Tiu and SinoChem General Manager Cui Yan, is expected to give the Philippine company greater market access to China.
A state-owned company founded in 1950, SinoChem is also one of China’s four largest state oil companies. Its other businesses are agriculture, chemicals, real estate and finance.
In September, ANI signed a $1-billion deal with Vietnam Southern Food Corp. (Vinafood II) to import 2 million metric tons (MT) of rice to the Philippines starting this year. — RJNI

Yields on BSP’s term deposits climb further despite demand

By Melissa Luz T. Lopez, Senior Reporter
YIELDS ON term deposits rose further this week as market players put forward higher bids to match the bigger offerings of the central bank.
Bids for short-term placements totalled P95.901 billion, improving from the P81.663 billion received the previous week to settle just above the P100 billion the Bangko Sentral ng Pilipinas (BSP) offered on Wednesday.
Appetite improved across the board after the auction amount was raised from P70 billion previously, although the longer tenors remained undersubscribed.
Demand for the seven-day instruments grew to P50.17 billion from the P44.325 billion received a week prior and filling the P50 billion which the BSP placed on the auction block.
Banks also wanted higher returns and asked for rates between 4.72% to as much as 5%, which pushed the average yield higher to 4.7442% from 4.7249%.
The 14-day deposits also received greater attention as players tendered P29.563 billion, up from P23.425 billion last week. This, however, remained below the P30-billion offering.
Banks also asked for bigger margins at an average of 4.789%, coming from the 4.7631% rate during the Oct. 31 exercise.
Offers for the 28-day notes also climbed to P16.168 billion from P13.913 billion previously, but failed to fill the P20 billion offered by the central bank. Yields also climbed to 4.901%, up from last week’s 4.8798% average.
The TDF has been the central bank’s main tool to capture excess liquidity and influence short-term rates in the financial system. Through the weekly auctions, the BSP can bring market and interbank closer to its desired range by setting the standard for short-term instruments using the margins that they pay to banks for these placements.
The stronger demand comes ahead of another rate-setting meeting of the BSP next Thursday, which will follow four straight hikes worth a total of 150 basis points (bp). Analysts are expecting another 25-bp hike from the BSP, softer compared to the back-to-back 50-bp increase in August and September amid signs of easing inflation.
Another rate hike from the BSP would also push TDF yields as well as market rates imposed by banks on their loan and deposit instruments.
The central bank trimmed term deposit offerings to P90 billion for next week, split into P50 billion for the one-week papers and P20 billion each for the 14- and 28-day tenors.

Citizen data scientists seen increasing

By Denise A. Valdez
Reporter
THE NUMBER of available data scientists around the world may soon not be enough to address the growing demand for expertise in the field, and eventually result in the rise of more citizen data scientists (CDS) to help do the job, ASG Technologies Group, Inc. said.
In a recent interview with BusinessWorld, ASG Technologies General Manager for Asia Pacific Praveen Kumar said many companies are unable to get data scientists as desired because of its high costs, but they remain sought-after in hopes of making sense of company data to improve business performance and internal processes.
“Data scientists, if you notice in many organizations, don’t exist… The reason they don’t exist is having a data scientist as a full time job is a lot of costs… Even in companies where there are data scientists, the big issue is that the number of data scientists are not enough to crunch the data that is available across different lines of business and provide the inputs that are needed…,” he said.
“This is where CDS come into play. These are primarily people who are within the same company, but have domain knowledge or industry knowledge in a particular topic… Their primary job is something else that they will contribute to the data scientist that exist within the organization in terms of inputs, changes, value additions, etcetera,” he added.
CDS are basically company employees who could function on top of their day-to-day job as bridge between data scientists and company leaders to arrive at conclusions faster and more efficiently. By learning around 30% to 50% of what data scientists do, CDS are expected to sort what information needs to be extracted from a certain IT process.
Mr. Kumar noted given the current situation, the emergence of CDS may become a trend among companies in the next two years.
“If you look at it, data scientists were there even five years back. This momentum has picked up in the past couple of years in terms of the volume of data that is there. I guess in the next couple of years you would see CDS’s momentum picking up also,” he said.
Currently, Mr. Kumar said some large financial banks, insurance companies and mature governments have started turning to CDS to help ease the job of data scientists and make the process of data crunching more efficient.
“They have started approaching people within their financial units to start being CDSs as part of the data scientists that they hire… Because they can’t hire 30 data scientists even if they want to. One is the money, second is the skills that are available, and thirdly the domain knowledge that actually exist within the market place,” he added.
Although third party companies also try to offer services that aim to do the same function and offer help in data analysis, Mr. Kumar said CDS shouldn’t be a threat but rather an aid in realizing the industry’s full potential.
“It helps companies like us to understand from them how to fine-tune certain areas of products which are relative to the domain rather than the IT portion of it alone, because we would also understand the industry trends, because they come from an industry domain perspective. They know how this industry is going to evolve, where is it going. So we can fine-tune our software,” he said.

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