EARNINGS of the largest shareholder in San Miguel Corp. (SMC) plunged 65% in the second quarter of 2017, as it realized the impact of the depreciation of the Philippine peso during the period.
In a regulatory filing, Top Frontier Investment Holdings, Inc. (TFHI) booked a net income attributable to the parent of P3.03 billion for the three months ending June, lower than the P8.55 billion it realized in the same period last year.
This brings TFHI’s attributable profit to P5.63 billion for the first half, 58% slower than the P13.52 billion in last year’s first half.
“The increase in other charges was primarily due to the recognition of foreign exchange loss in 2017 as a result of the depreciation of the Philippine peso against the US dollar by P0.75 in June 2017,” the company said.
TFHI said it recorded a net loss of P2.678 billion on foreign exchange for the six months ending June 2017, as compared to the P836 million net gain it realized in the same period in 2016.
TFHI holds a 66.09% stake in Ramon S. Ang-led SMC, which has business interests in food and beverage, infrastructure, and fuel and oil. The company also holds 100% ownership of Clariden Holdings, Inc., which engages in the mining industry.
Shares in TFHI added 20 centavos or 0.07% to P301.8 apiece on Tuesday. — Arra B. Francia
THE Department of Public Works and Highways (DPWH) and the North Luzon Expressway (NLEx) Corp. yesterday broke ground on the R-10 section of the NLEx Harbor Link Segment 10.
DPWH Sec. Mark Villar, MNTC President Rodrigo Franco, and local chief executives break ground on the R-10 section of the NLEX Harbor Link Segment 10. — Patrizia Marcelo via Twitter
The R-10 is a 2.6-kilometer road that serves as the continuation of the 5.7-kilometer Segment 10, which is an elevated expressway passing through McArthur Highway in Valenzuela City, Governor Pascual Avenue in Malabon City, and C3 Road/5th Avenue in Caloocan City.
Manila North Tollways Corp. (MNTC) is the concessionaire for the project.
The project aims to provide direct access between the port area and provinces in northern and central Luzon. It is also designed to decongest Metro Manila by offering an alternative entry to NLEx without traversing Epifanio de los Santos Avenue (EDSA) and other major roads.
Construction began yesterday, and the project is expected to be completed by December 2018.
DPWH Secretary Mark A. Villar, MNTC President and Chief Executive Officer Rodrigo Franco, and Malabon City Mayor Antolin Oreta III attended the ceremony. Navotas City Mayor John Reynald Tiangco sent a representative.
The R-10 section will have two new exits, the Navotas Interchange and Malabon Exit (at Dagat-Dagatan Avenue), said Mr. Franco. The R-10 will also be constructed alongside the upcoming North-South commuter rail system.
“It’s a short section, but very critical,” Mr. Franco said in his speech.
The project is expected to improve livelihoods and foster development in the CAMANAVA (Caloocan, Malabon, Navotas, Valenzuela) area.
Mr. Villar said that the project, along with other infrastructure projects under the government’sbig infrastructure, will improve road congestion in Metro Manila.
“There’s a light at the end of the tunnel for our traffic problems in Metro Manila,” Mr. Villar said.
Mr. Villar cited the help of local chief executives, the mayors of the cities traversed by the new road, in fast-tracking acquisition of right-of-way.
“To hasten right-of-way, we need the support of local government (units). I’d like to thank our local governments, [the] mayors who have been dedicated to make sure our projects are completed at the soonest possible time,” Mr. Villar said in his address. — Patrizia Paola C. Marcelo
August 2017 is definitely one great stretch to be a Filipino sports fan with many events to immerse in and cheer for our athletes.
You have the ongoing FIBA Asia Cup 2017 happening in Beirut, Lebanon, where Gilas Pilipinas is actually doing well, and the AVC Asian Senior Women’s Volleyball Championship currently ongoing right here at our own backyard and where Team Philippines is also making things happen.
Last week in football, Ceres-Negros FC ruled Southeast Asian club football when it won the AFC ASEAN Zonal final over Singapore’s Home United FC, 3-2, on aggregate to advance to the next round of the region’s secondary club football tournament.
These are apart from the ongoing local competitions in various leagues for basketball, both pros and amateurs, volleyball and football.
And later this week, sports fever in the country should only boil some more as our athletes see action in the 29th Southeast Asian Games in Kuala Lumpur, Malaysia.
Happening from Aug. 19-30, the Philippines will be sending 490 athletes to compete in 37 events out of a possible 38 in the biennial regional sporting meet.
Local officials said Team Philippines is aiming to do good in KL and angling to haul at least 50 gold medals.
Whether such goals are to be met remains to be seen but just the same, this space believes every Filipino sports fan should be invested in following the exploits of our athletes in Malaysia for I am pretty sure seeing them compete for flag and country will be worth one’s while.
The country’s men’s and women’s basketball teams are definitely to be followed for they have much potential to bring home medals for us.
Gilas Pilipinas is parading a different team for the SEA Games from that of the FIBA Asia Cup but the potency of the squad is pretty much the same while Perlas Pilipinas (women’s team) is coming off a skills-building outing in the FIBA Women’s Asia Cup.
Our volleyball team, with the likes of Alyssa Valdez, Kim Fajardo and Jaja Santiago, should also be eyed for the improvement it has been showing, using the ongoing AVC women’s tournament as gauge. As of this writing, the team is into the quarterfinals and was set to face Thailand.
Boxing is another sport I am high at with what I believe is a strong cast composed of the likes of 2015 SEA Games medalists Eumir Marcial, Ian Clark Bautista and Mario Fernandez and 2016 Rio Olympian Charly Suarez as well as Fiipino-British light-heavyweight fighter John Marvin. The latter will make his maiden tour of duty for the country and based on the short talk I had with him recently he seems to be a solid proposition.
Football has not been kind to us in the SEA Games but I believe our Under-22 team is set to make waves in the tournament owing to the improvements and developments in the local football scene.
Veteran Philippine billiards, athletics and swimming teams should also be followed as well as our taekwondo crew, led by flag-bearer and Olympian Kirstie Elaine Alora.
Our teams on ice — hockey, figure skating and speed skating — which includes Michael Martinez and the wushu team are also worth noting.
Bowling, too, under legend and now national team coach Paeng Nepomuceno may also spring some surprises.
With a packed schedule of sporting events that Filipinos are taking part in right now, there is no reason why we should not rally behind our athletes. We are on the same boat here for Three Stars and the Sun. Mabuhay ang Atletang Pilipino! Laban Pilipinas!
Michael Angelo S. Murillo has been a columnist since 2003. He is a BusinessWorld reporter covering the Sports beat.
THE DEPARTMENT of Agriculture (DA) Davao Region office said it has started taking measures to ensure the protection of the local poultry industry amid the bird flu outbreak in Pampanga. DA-Davao Avian Influenza Coordinator Dannie A. Apelo said the region remains free from bird flu since it does not source chicken products from Luzon. Among the biggest chicken producers in the region are San Miguel, Vitarich, Magnolia and Bounty. However, there are identified hot spot areas to watch such as Davao City, Carmen and Dujali in Davao del Norte, and Malalag in Davao Occidental where migratory birds from China fly in around September and fly out by March. Mr. Apelo said they have already started conducting surveillance and blood sampling of birds and fowl in these areas as a precautionary measure.
EAGLE CENTER Meanwhile, the Philippine Eagle Foundation (PEF) announced the temporary closure of the Philippine Eagle Center in Davao City on Aug. 15-16 in response to the avian flu incident. “This is to allow our team to set up necessary emergency measures and ensure the safety of our Philippine eagle and other raptors in the facility. We have yet to establish if this will be extended,” the PEF said. — Carmencita A. Carillo
LEARN the basics of Kundalini Yoga on Aug. 20 (Sunday), the tools and techniques used for finding ease, balance and harmony. The two-hour workshop will focus on a deeper understand of the basic techniques used in class such as: Tuning In, Breath of Fire, Mantras, Mudras, Kriyas, Bandhas, and the effects of specific Meditations. The workshop will be held at Yoga+Express Legazpi from 9:30 a.m. to 11:30 a.m., and costs P600 for members and P700 for non-members. For details, visit http://bit.ly/KundaliniYoga101 or text 0917-710-9642.
FREETOWN — Rescue workers have recovered 270 bodies so far from a mudslide in the outskirts of Sierra Leone’s capital Freetown and the search continues for more, the mayor said on Tuesday.
Dozens of houses were covered in mud when a mountainside collapsed in the town of Regent on Monday morning, one of the deadliest natural disasters in Africa in recent years.
“We have a total of 270 corpses which we are now preparing for burial,” Freetown Mayor Sam Gibson told reporters outside city hall.
A mass burial today will free up space for more bodies in the central morgue, which is overloaded, a Reuters witness said.
President Ernest Bai Koroma urged residents of Regent and other flooded areas around Freetown to evacuate immediately so that military personnel and other rescue workers could continue to search for survivors that might be buried underneath debris.
Rescue centers have been set up around the capital to register and assist victims, he said in a television address on Monday evening. — Reuters
Columbian Autocar Corp., the official distributor of Kia vehicles in the country, has owned a team in the Philippine Basketball Association (PBA) since 2014. The squad is approaching the end of what is presumably a five-year minimum contract with the professional league, so perhaps it’s time to wonder whether splurging the bulk of the automaker’s marketing budget on the nation’s favorite sport has yielded favorable results.
Of course, Kia isn’t the first car company to join the PBA to try and turn its brand into a household name. In the ’70s, Toyota endeared itself to Filipinos by running a team that was exciting to watch and won often. That team also cemented the status of Robert Jaworski as the most celebrated player in the history of the league. Four decades later, even casual basketball fans can still recite the names of the team’s core members: Francis Arnaiz, Ramon Fernandez, Abe King, Danny Florencio and Arnie Tuadles. People packed the Araneta Coliseum just to watch them shoot hoops, and the public so gobbled up pretty much everything these players said and did that Toyota used them on print ads and TV commercials.
In other words, hemorrhaging money into a professional basketball team paid dividends for Toyota back then, which, if you ask me, also played a significant role in boosting the company’s brand recall even with the Japanese marque pulling out of the Philippine market in the ’80s. The cognomens “Tamaraw” and “Corolla” — patently embroidered on bright-red and white jerseys — achieved the kind of nationwide prominence no conventional advertising campaign could have provided.
Marketing students need to understand, however, that Toyota became popular not because Jaworski and Arnaiz were good-looking (although that helped to a degree). The club became legendary not because the players appeared in movies and attended glitzy parties. No, they became popular and legendary because they kept winning. In all, they collected a total of nine championship titles from 1975 to 1983.
Nobody roots for losers, except for their mothers (and even this is not a guarantee). Everyone naturally associates with victors. So you can imagine how many customers snapped up “Macho Machines” in the ’70s just because they wanted to look like virile basketball champs.
Fast-forward to the present. The Kia team — renamed “Picanto” for this season in honor of the newly launched third-generation mini hatchback — is dead-last in the standings after six games. Its record in the ongoing Governors Cup? A dismal 0-6. Yep, not a solitary game won.
I watched the team’s fourth game live, against the Ginebra Gin Kings. If you ever needed to grasp the chasm between a perennial contender and a cellar-dweller, this was the perfect game to see. It was over by the third quarter, with Ginebra leading by nearly 30 points and inserting benchwarmers to finish the job. Kia’s offense was awful, its defense even worse. It was like witnessing a professional basketball team toy with junior varsity.
Throughout the game, I kept asking Kia Philippines marketing head Nenuka Guba about the players, none of whom I recognized. Heck, it has only been a couple of weeks and I can’t even remember a single name. Then again, it’s probably due to brain cells having a propensity to die during middle age.
I also kept thinking whether Kia executives weren’t regretting having reclaimed the team’s name. You see, a year after being introduced as Kia Sorento, the team was christened Mahindra Enforcer. The Indian vehicle maker is represented in the country by the same group that manages Kia, and at that time the bosses felt Mahindra needed the exposure more. So here, too, was a telling indication of the organization’s half-hearted approach to its PBA experiment: Use the league simply to give its brands some hype. Couple this with the much-maligned appointment of Manny Pacquiao as playing coach, and you just know the team treated its PBA participation with levity.
Hence, I’m not sure spending heavily like this is a good way to exhaust one’s marketing and advertising budget. I read an article online that the current minimum salary for a player today is around P50,000 a month. That’s the minimum. Go figure how much it costs to pay an entire squad, complete with trainers and assistants. The only way to justify expenditure this substantial is if the team wins at least a third of its games, not with the deputy coach openly calling out his players for a collective lack of effort.
Thankfully, there’s a lot of promise in the car after which the team is named. You could argue the all-new Picanto doesn’t need publicity from a nationally televised basketball tournament to sell in record numbers. Available in two variants (1.0L M/T and 1.2L A/T), the latest version of the Korean runabout is now the most stylish in its class. Which made me muse loudly to Kia Philippines president Ginia R. Domingo about how the Picanto might be better off being marketed in the UAAP, before a predominantly millennial crowd.
To my surprise, Ms. Domingo had this to say: “Actually, kids today don’t like small cars. They prefer bigger crossovers. The Picanto appeals the most to housewives, as a second car for running errands.”
Mmm… well, in that case, maybe winning championships isn’t all that important, if you know what I mean.
THE Lopez Museum and Library will hold two new exhibitions before the institution moves into its new interim home at Rockwell Business Center Sheridan in the first quarter of the year 2018. The two exhibitions – The Given Order and What do I Say to a Giant – will run from Aug. 22 to Nov. 29. The Given Order, curated by Ricky Francisco, talks about the manifestations of religion in the contemporary age and features artists Jason Dy, S.J. and Anton del Castillo who will interact with both the Lopez Museum and Library visual arts and library collection of works. What do I Say to a Giant is part of the museum’s The Artist Turns a Century program. The exhibit explores the journalistic pursuit and acclaim of National Artist Nick Joaquin, and strives to (re)introduce Quijano’s works in conversation with works of Marc Gaba and Teaching Exhibitions alongside tangents that will meaningfully engage present contexts.
Group exhibit at 1335Mabini
1335MABINI presents Kristoffer Ardeña, Micaela Benedicto, and Klaus Wanker in a group exhibition which is ongoing until Aug. 22. The exhibition focuses on one of the fundamental aspects of understanding phenomena; the plane – material and abstract. This is the second in a series of exhibitions under Cumulus Blimp: A Transnational Platform of Discourse program of 1335MABINI. It has a calendar of exhibitions involving artists from the Philippines, Japan, Taiwan, Indonesia, Austria, America, and Israel until next March. Meanwhile, after four-and-a-half years since its inception in 2013, 1335MABINI announces the establishment of a new exhibition space in Karrivin Plaza, Makati City, which will serve as an extension of its gallery headquarters based in Casa Tesoro, Manila City. 1335MABINI’s program of exhibits, screenings, workshops, talks, and residencies will extend to the 245-sq.m. space in Karrivin Plaza. Concurrently, the gallery is also announcing that Casa Tesoro will now also host up-and-coming contemporary art gallery MONO8, signifying a revival of Ermita as one of the primary art districts in Manila. 1335MABINI’s inaugural exhibition in Karrivin Plaza will be on Sept. 1, featuring works by represented and exhibited artists. The gallery is located at Casa Tesoro, 1335 Mabini St., Ermita, Manila.
PPO Youth concert at CCP
THE Cultural Center of the Philippines will hold a special concert specifically for children ages 10-13 years old, featuring the Philippine Philharmonic Orchestra (PPO) under the baton of Maestro Yoshikazu Fukumura, on Aug. 24, 10 a.m. and 2 p.m., at the Little Theater. Guest artists are Filipino violinist Joaquin Maria “Chino” Gutierrez for the morning concert, and violinist Adrian Nicolas C. Ong for the afternoon performance. The concert aims to stimulate the children’s creativity as well as develop their understanding of symphonic music in a concert setting. The young audience will also have the chance to acquaint themselves with the four major families of instruments. Certain musical terms will also be explained during the concert. Program includes J. Strauss’s Die Fledermaus – Overture, and Pizzicato Polka, C. Saint-Saens’s Introduction and Rondo Capriccioso, R. Vaughan Williams’ Fantasia on Greensleeves, Leroy Anderson’s Serenata, and Arturo Marques’s Danzon No. 2. Tickets cost P200.
Photo exhibit culminates 30 year stay
A PHOTOGRAPH of the Tau’t Batu in Singnapan Valley in Palawan taken by Pierre de Vallombreuse.
THE VALLEY, a photo exhibition by French photographer Pierre de Vallombreuse, will be on view from Aug. 31 to Feb. 4 at the Old Senate Hall of the National Museum of the Philippines in Luneta, Manila. Mr. De Vallombreuse had dedicated almost 30 years of his life to documenting the landscapes and daily lives of the ethnolinguistic group, the Tau’t Batu in Singnapan Valley in Palawan. Eighty-one photographs and more than 100 digital photos will be presented in the exhibit. This exhibit serves as his final project in the Philippines as the director of Alliance Française de Manille.
Callaghan, Zamuco at Silverlens
SILVERLENS presents Frank Callaghan’s exhibition, Search/Light, his fifth solo show with the gallery, starting Aug. 17. His last show, Dead Ends in 2014, won the prestigious Ateneo Art Awards. In this new series of 17 photographs, he continues his night shooting that has become his signature. Also opening that evening is Eric Zamuco’s Almost Not, his fourth show with the gallery. The exhibit focuses on the re-contextualization of objects, in this case military field gurney stretchers, counter-weighting them with other objects devised from either personal histories or formal transgressions. Light, sound, video, and print are just some of the elements that accompany the gurney stretchers’ new design which are painted in chrome and are wrapped in leather jackets. The two exhibits run until Sept. 16 at Silverlens, Lapanday Center, 2263 Don Chino Roces Ave. Ext., Makati City.
Halili in Lucban gallery
PROJECT SPACE Pilipinas presents Gregory Halili’s exhibit SaLang. “Salang” means to take one’s turn or to be in the spotlight. In the old vernacular, it may also mean “to touch.” SaLang contracts two words to mean “one only.” A single-piece exhibition series, SaLang is an encounter with the intimate universe of artists, their complex and eternal dance with meaning, and the perpetual struggle against the limitations in the methods of abstraction. The exhibit is on view until Aug. 30 at Project Space Pilipinas, No. 6 Eleazar St., Lucban, Quezon. For inquiries, contact projectspacepilipinas@gmail.com.
MO_Space presents group show
FRESH CUT, NEW BLOOD, a group show focusing on collage featuring the works of Jan Balquin, Dina Gadia, Jacob Lindo, Carina Santos, and Jel Suarez, and curated by Gary-Ross Pastrana, is on view until Sept. 3 at MO_Space.
Free dance workshop for kids
Using their bodies as instruments in dance, children may explore shapes, space and movement in response to challenges and problem-solving in Creative Dance and Body Movements for Kids, a workshop on Sept. 9 at the MCAD Multimedia Room of the De La Salle-College of Saint Benilde’s (DLS-CSB) Museum of Contemporary Art and Design (MCAD). The three-hour workshop will introduce participants to creative dance and body movement for theater. The workshop is free and open to the all children aged seven to 11 as part of the public programs for MCAD Manila’s current exhibition, Re-enactments. Limited slots are available. For details and inquiries, visit www.mcadmanila.org.ph. MCAD is located at the DLS-CSB School of Design and Arts Campus, 950 Pablo Ocampo St., Malate, Manila.
Master class in theater scene design
NEW YORK-based scenic designer Jenna Snyder will conduct a six-day intensive Master Class on Scenic Design Analysis, Imagery and Hands-On Scenic Painting from August 14 to 19 at the Scene Shop of the De La Salle-College of Saint Benilde School of Design and Arts. The lectures will focus on individuality as an artist and the design process from the point-of-view from behind the scenes. Snyder will likewise conduct hands-on workshops on the proper techniques on painting for set pieces. The Scene Shop is located at the De La Salle-College of Saint Benilde School of Design and Arts Campus, 950 Pablo Ocampo Street, Malate, Manila.
A case study on the Kagayanen language
LOUISE ANN MACGREGOR of the US-based nonprofit Summer Institute of Linguistics looks into the factors that affect reading ability and what is read or not read in “Talk the Talk: A Case Study on the Kagayanen Language,” on Aug. 16, 3 p.m., in Rooms 502 and 506 at the First United Bldg. of the FIRST|Coworking Community. MacGregor will focus on the language intrinsic to the province of Palawan based from her experience in community-based language development and literature production activities. The presentation is free and open to the public as part of the programs of the De La Salle-College of Saint Benilde’s Museum of Contemporary Art and Design’s The Library of Unread Books, an exhibit made up of donated books that are unread by their previous owners. For details and inquiries, visit www.mcadmanila.org.ph. The First United Bldg. is located at 413 Escolta St., Binondo, Manila.
By now, most have probably heard or read about the Duterte government’s infrastructure and economic plans. Its long-term vision, Ambition 2040, aspires for Filipinos to enjoy a comfortable and secure existence as an upper middle-income economy, while Dutertenomics and the “Build, Build, Build” seek to usher in a golden age of infrastructure.
While much has been said about the country’s potential for economic growth, there hasn’t been quite enough on the integral role played by the energy sector in realizing that potential.
To support the economic and infrastructure plans the Philippines will have to nearly double its power generating capacity over the next decade or so.
In fact, during the recent ASEAN Senior Officials Meeting on Energy (SOME), Department of Energy Secretary Alfonso Cusi reiterated the Philippines’ need to increase its generating capacity by 44,000 MW by 2040 to support the projected increase in demand. No small feat considering that it takes three to four years to construct a power plant, not to mention the additional delays brought about by to the time it takes to secure the necessary permits before construction or the possible delays when securing the required regulatory approval to dispatch power after construction.
While President Rodrigo Duterte’s recent State of the Nation Address (SONA) could have been a platform for the administration to reiterate the role of a reliable and competitive power sector in the country’s industrialization plans, the President did not touch on the topic of power and energy this time around. However, about a month before his second SONA he did issue an executive order creating a task force to establish a simplified approval process for permits and licenses to fast track the implementation of big-ticket energy projects, setting into motion the fulfillment of a promise he made in his first SONA, a year ago.
President Duterte issued Executive Order (EO) No. 30 s. 2017 on June 28, creating the Energy Investment Coordinating Council (EICC) to spearhead and coordinate the national government’s efforts to harmonize and streamline the regulatory process for energy investments in the country. The EICC is chaired by the Department of Energy (DoE) and is composed of representatives from the Department of Environment and Natural Resources and its bureaus, Department of Finance, Department of Transportation, Department of Justice, as well as a handful of other and agencies relevant to the permitting process.
EO 30 furthermore directs these relevant agencies to act on applications for permits involving Energy Projects of National Significance (EPNS) within thirty days. What makes a project an EPNS was also defined in the Order as major DoE-endorsed energy projects and that are in consonance with specific goals of the Philippine Energy Plan (PEP), such as energy projects that represent significant capital investment, contribute to the country’s economic development, consequential economic impact, or have significant positive impact on the environment.
The issuance of EO 30 is a welcome development since it recognizes the urgent need to construct additional power plants to accelerate and promote rapid economic growth in an open competitive power market environment. Clearly, the order seeks to address the bureaucratic red tape that has hindered the entry of investments into the construction of power plants is worthy cause.
However, going through the text of the EO, it seems focused on streamlining the issuance of permits leading up to construction, but is not as explicit when it comes to the regulatory delays that may come up once the plants have already been constructed, such the delays in the approval of power supply agreements (PSAs) between generating companies and distribution utilities and the issuance of certificates of compliance (COCs) to plants before that can start operating.
Currently, there are over 90 PSAs pending approval by the Energy Regulatory Commission (ERC) since last year. These PSAs represent over 4,000 megawatts of additional power capacity that cannot be distributed to the lack of regulatory approval. The delays in the ERC approval of these agreements has already led to a group of manufacturers and businesses to call for immediate action on these PSAs, since the delays could lead to instability in power supply, threatening their operations.
It hardly makes sense to fast tracking the construction of new power plants, only to hold in abeyance the processing of the approval of the permits needed to supply their power to consumers. It not only contradicts the very objective of EO 30, but could potentially derail the country’s rapid economic growth. Hopefully, when the EICC convenes to craft the rules, regulations and processes for the implementation of the order that they see it the same way.
Some of the new energy policies and pronouncements of the current administration represent big steps towards creating a reliable and competitive energy sector in the Philippines. But while EO 30 may lead to the removal of some of obstacles along the way, several more steps still have to be taken if the sector is to sufficiently power the economic growth envisioned for the country.
Paco Pangalangan is the Secretary-General of CitizenWatch.
CENTURY PROPERTIES Group, Inc. (CPG) remains on track with its expansion plans for 2017, despite a 61.2% drop in its attributable profit for the April to June period.
In a regulatory filing, the listed property developer disclosed a net income attributable to the parent of P152.36 million, against the P392.93 million it realized in the same period in 2016. The drop in earnings comes amid a 28.4% slide in revenues for the period to P1.39 billion.
Including first quarter results, CPG’s attributable net income slowed by 11% to P445.81 million, on the back of a 14% decline in revenues to P3.35 billion. Real estate sales dropped by 29.4% in the first half to P2.1 billion, as the company saw less project launches for the period.
The decline in CPG’s earnings comes as it pursues a diversification strategy that aims to expand its product offering to affordable and tourism projects, from the high-rise condominium projects it is currently known for.
To pursue this strategy, the company, in partnership with Japan’s Mitsubishi Corp., launched in May its first affordable housing project called Phirst Park Homes in Tanza, Cavite.
CPG reported strong sales for the project, with 828 out of the 1,039 units included in the first phase of the development already sold. With the high demand, the company said it willaccelerate the launch of the second phase, which was originally scheduled for 2018.
CPG is also set to replicate the Phirst Park Homes concept in other areas in the Cavite-Laguna-Batangas-Rizal-Quezon region as well as the Central Luzon area, with three multi-phased projects already in the pipeline for 2018.
Meanwhile, its foray into tourism will include the launch of the company’s first tourism-oriented development in its 142-hectare landbank in Batulao, Batangas by the second half of the year. The project will consist of 306 homes on 6.6 hectares of land, with revenues estimated to reach P1.88 billion.
Despite its diversification into other segments, CPG said it remains committed to in-city projects, with 95% of its existing projects totaling 20,000 units already pre-sold.
Shares in CPG added a centavo or 1.96% to close at 52 centavos each on Tuesday. — Arra B. Francia
MANILA ELECTRIC Co. (Meralco) has received interest from a price challenger to the P3.50 per kilowatt-hour (kWh) quoted by Citicore Power, Inc., which has offered to the distribution utility the output of the solar farms it is developing.
Next Generation Power Technology Corp.’s 18-MW solar power plant located within the Freeport Area of Bataan in Mariveles, Bataan — CITICOREPOWER.COM.PH
“I don’t know who challenged, but there is a challenge,” said Oscar S. Reyes, Meralco president and chief executive officer, in a chance interview on Tuesday.
Asked about the number of challengers, he said: “Isa lang (Only one).”
Under the rules on competitive selection process (CSP) issued by the Energy Regulatory Commission (ERC), a distribution utility that enters into a power supply agreement (PSA) should first seek challengers to the price offered by a generation company, in this case the two solar farms being developed by Citicore.
Asked whether the challenger has submitted its offered price, Mr. Reyes said: “To my knowledge, dapat na-submit na (it should have been submitted already). Hindi ko lang alam kung na-submit na (I just don’t know if it has indeed been submitted).”
He declined to give an answer when asked about the price offered by the challenger, but said: “It would be lower than P3.50 [per kWh].”
Separately, Meralco Chairman Manuel V. Pangilinan said the declining price of solar energy could only be good for consumers, adding that for the distribution utility the power generation charge, at whatever cost, is simply passed on to electricity users.
He also said declining solar prices could also mean the price of coal power will adjust, and further go down.
“We were thinking as to what total capacity we should build based on coal. I think it’s still needed because it’s cheap… coal prices will adjust. The coal mines would not be put out of business. They’re good for baseload capacities. I think the country should have a mix of energy or fuel sources — coal, renewables, gas,” he said.
He added the declining solar cost would be good for the economy.
“It’s gonna be beneficial for the economy because your disposal income devoted to power is lessened, therefore you can spend more money for whatever, for telephone services, for consumer goods, for your kids, for your tuition,” he said.
Through subsidiaries, Meralco has a pending coal-fired power plant under development that is awaiting regulatory approval for its power supply contract, a requirement demanded by most financial institutions before partly funding a project.
Meralco, the country’s biggest distribution utility with more than six million customer accounts, has also created separate subsidiaries to look into solar projects. It also has joint ventures in run-of-river hydroelectric power projects.
On June 28, Meralco invited solar power developers to challenge the offer made by Citicore as required by the CSP rules.
Citicore offered the output of its three solar power plants, namely: Next Generation Power Technology Corp., First Toledo Solar Energy Corp. and Silay Solar Power, Inc. The plants are in Mariveles, Bataan; Toledo, Cebu and Silay, Negros Occidental.
The price challenge validates pronouncements made by solar power developers that the cost of the energy source is on a continuous decline.
Meralco’s previous two PSAs with separate solar power developers were priced within a range of P4.69 to P5.39 per kWh. The distribution utility is awaiting approval from the ERC for the two separate power supply deals.
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
THE local barometer climbed back to the 8,000 level on Tuesday, as the market regained composure following easing tensions between North Korea and the US, complemented by optimism on Philippine economic growth for the second quarter.
The 30-member Philippine Stock Exchange index (PSEi)inched up by 0.59% or 47.29 points to end at 8,009.41 yesterday. The all-shares index also climbed 0.5% or 23.69 points to 4,729.73.
“The market stayed upward today, closing above 8,000, [due to] positioning in anticipation of good GDP (gross domestic product) figures to be reported on Thursday. Investors also cheered the reduction of tensions between North Korea and the US,” PNB Securities, Inc. President Manuel Antonio G. Lisbona said in a text message on Tuesday.
Regina Capital Development Corp. Managing Director Luis A. Limlingan was of the same mind, noting that Philippine stocks, while “not out of the woods,” continued their uptrend amid easing geopolitical concerns.
US stocks recovered further on Monday from last week’s sell-off, with the S&P 500 posting its biggest one-day percentage gain since April as worries eased about a conflict between the United States and North Korea.
US officials on Sunday played down the risk of an imminent war with North Korea. Those concerns had helped wipe out nearly $1 trillion from global equity markets last week.
The Dow Jones Industrial Average rose 135.39 points or 0.62% to close at 21,993.71, while the S&P 500 gained 24.52 points or 1% to 2,465.84. The Nasdaq Composite added 83.68 points or 1.34% to 6,340.23.
Analysts said investors are awaiting tomorrow’s release of official second-quarter GDP data by the Philippine Statistics Authority.
“With earnings season coming to an end, GDP on Thursday could make or break the index prior to official start of ‘ghost month,’” Mr. Limlingan said.
The mining and oil sector was the lone counter in the red yesterday, dropping 0.07% or 9.49 points to 12,577.88.
The industrials counter led gainers with an increase of 1.2% or 130.18 points to 10,959.57, followed by holding firms, which added 42.26 points or 0.53% to 7,883.06. Services rose 0.4% or 6.81 points to 1,696.7, financials added 0.36% or 7.21 points to 1,996.78, and property gained 0.35% or 13.42 points to end at 3,781.31.
A total of 938.03 million issues changed hands for a value turnover of P4.79 billion, lower than Monday’s P5.11 billion. “[Tuesday’s] relatively thin value turnover indicates slowing investor participation… We may see some profit taking in the next few days as the market nears resistance,” PNB Securities’ Mr. Lisbona said.
Advancers outpaced decliners, 121 to 82, while 44 issues were unchanged.
Net foreign buying thinned to P197.52 million yesterday from the P265.61 million recorded on Monday. — A.B. Francia with Reuters
