LOPEZ-LED First Gen Corp. reported a 2.5% decrease in its attributable net income to $75.26 million for the second quarter (Q2), driven by higher expenses and lower contributions from some of its business units.
First Gen’s gross revenues increased by 7.4% to $682.05 million from last year’s $634.78 million, the energy company said in a regulatory filing on Monday.
Gross expenses, on the other hand, went up by 14.8% to $552.09 million from $481.12 million in the previous year.
For the six months ending in June, First Gen’s attributable net income fell by 7.4% to $154.08 million compared to $166.44 million the previous year. Gross revenues declined by 0.8% to $1.28 billion from $1.29 billion a year ago as a result of lower volumes of electricity sold during the first half “across all platforms except for the hydro platform.”
First Gen reported additional sales volumes from the 165-megawatt (MW) Casecnan Hydroelectric Power Plant following its turnover in February.
Natural gas accounted for the majority of First Gen’s revenue at 66.8% or $853.72 million, followed by geothermal, wind, and solar at a combined 30.2% or $386.44 million, while the remainder is for its hydro at 0.7% or $8.77 million.
For the first half, the company’s expenses increased by 4% to $997.93 million versus the $959.18 million previously. First Gen’s natural gas business unit posted a 26% increase in its earnings for the first half to $115 million.
The company said that the 420-MW San Gabriel, 1,000-MW Sta. Rita, and 500-MW San Lorenzo power plants delivered higher operating income “due to savings in operating expenses, and high spot market prices in the case of San Gabriel.”
Avion Power Plant recorded a decrease in net income due to lower kilowatt-hour sales and higher operating expenses.
Earnings from First Gen’s renewable energy unit, Energy Development Corp. (EDC), excluding hydro’s, declined by 42% to $44 million brought about by lower revenues.
“The geothermal power plants under EDC generated lower sales and operating income due to a reduction in electricity prices and electricity sold, and higher operating expenses from steam field maintenance and work-over activities,” the company said in a statement.
The unit also incurred higher interest expenses from new debt, it added.
Contributions from First Gen’s hydro platforms were at $5 million, with Casecnan Hydroelectric Power Plant accounting for $1-million earnings for its four months of operations in the first half.
First Gen has a total of 3,668 MW of installed capacity, accounting for 20% of the country’s gross generation.
At the local bourse on Monday, shares in the company rose by 2.53% to close at P17 each. — Sheldeen Joy Talavera
RAZON-LED International Container Terminal Services, Inc. (ICTSI) reported a 32.3% increase in second-quarter (Q2) attributable net income to $210.67 million, driven by a rise in container volumes at its terminals and growth in ancillary services.
“While we remain vigilant of continuing economic and geopolitical uncertainty, we have a proven and sustainable growth strategy which gives us confidence in our outlook and continued ability to generate value for all our stakeholders,” ICTSI Chairman and President Enrique K. Razon, Jr. said.
For the April-to-June period, the company saw its combined revenues grow to $684.03 million, climbing by 15.4% from last year’s $592.73 million.
Broken down, the company’s second-quarter gross revenue from port operations was driven by its activities in Asia, which contributed $277.52 million to the total revenue. Revenue from operations in the US was $277.14 million, while revenue from the EMEA (Europe, Middle East, and Africa) region amounted to $129.37 million.
For the second quarter, Asia handled 1.78 million twenty-foot equivalent units (TEUs); EMEA at 607,489 TEUs, and US at 829,918 TEUs.
The listed port operator said its gross expenses for the second quarter grew by 4.6% to $306.66 million from $293.07 million in the comparable period in 2023.
“We’ve delivered a strong first-half performance, yet again demonstrating the strength of ICTSI’s diversified international portfolio and continued delivery of our strategic initiatives,” Mr. Razon said.
For the first semester, ICTSI’s attributable net income surged to $420.55 million, higher by 34% from the $313.8 million previously.
ICTSI said its first-half attributable net income includes income from the settlement of legal claims at its ICTSI Oregon and the impact of the deconsolidation of its unit, PT PBM Olah Jasa Andal (OJA) in Jakarta, Indonesia.
Excluding this nonrecurring income and charges, its attributable net income for the first semester would have increased to $401.69 million, the listed port operator said.
Its gross revenue for the January-to-June period increased to $1.32 billion, marking a 13.8% increase from $1.16 billion in the same period last year.
ICTSI said gross revenues from port operations were driven by higher ancillary services revenues, tariff adjustments, volume growth in terminals, and favorable translation impact of the appreciation of Mexican peso-based revenues.
The port operator managed a consolidated volume of 6.31 million TEUs for the first semester, 0.48% higher than last year’s 6.28 million TEUs.
The company attributed this volume growth to the impact of new services and improvement in trade activities at select terminals, ICTSI said.
However, ICTSI said its volume growth was offset by a volume decrease at its unit Contecon Guayaquil S.A. (CGSA) in Guayaquil, Ecuador due to the expiration of its concession contract at Pakistan International Container Terminal and the deconsolidation of OJA in Indonesia.
The company’s capital expenditures (capex) for the first six months amounted to $185.72 million, which was allocated to the ongoing expansion at CMSA in Mexico, ICTSI Rio in Brazil, Manila International Container Terminal (MICT) in the Philippines, ICTSI DR Congo S.A. (IDRC) in the Democratic Republic of Congo, and East Java Multipurpose Terminal (EJMT) in Indonesia.
For the year, the company has allocated $450 million for its capex, including the $60-million capex carried over from 2023, ICTSI said.
At the stock exchange, shares in the company gained P7.20 or 2.01% to end at P365 each. — Ashley Erika O. Jose
PANGILINAN-LED PLDT Inc. and its wireless arm Smart Communications, Inc. said they are expanding their inclusion program by partnering with the National Council on Disability Affairs (NCDA) to provide solutions for persons with disabilities (PWDs).
“We have been doing this program for many years. We have been working together since the pandemic, and because we are now focusing on inclusion, we decided to come here and partner with NCDA,” Catherine L. Yap-Yang, PLDT first vice-president and corporate communications head, said in an interview on Monday.
PLDT and Smart signed a memorandum of understanding with the National Council on Disability Affairs (NCDA) to launch Innovation Generation 4.0. This initiative aims to engage tech-savvy youths in developing innovative digital technology solutions for persons with disabilities.
“In the course of the whole program, we provide connectivity because we conduct all these in a hybrid format. We also provide the funding for the on-site engagements,” Ms. Yang said.
“[The program] is dedicated to addressing the everyday challenges faced by persons with disabilities. By harnessing the creativity and technical expertise of young innovators, this partnership seeks to create meaningful change that benefits persons with disabilities across the country,” NCDA said in a separate statement.
Launched in 2020, Innovation Generation is PLDT and Smart’s innovation grant program for young and tech-savvy Filipinos. It serves as a platform for the youth, allowing them to pitch solutions committed to social good.
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. — Ashley Erika O. Jose
Philippine-based Pain Management Plus (PMP) Pain Center leverages clinic management software HealthBlocks360 for growth and operational efficiency
Pain Management Plus (PMP) Pain Center, a dynamic physical therapy clinic in the Philippines, has taken a proactive approach to its operations by embracing the transformative power of technology. Through its strategic partnership with HealthBlocks360 — a cloud-based clinic management software developed by HealthBlocks — PMP Pain Center is streamlining its operations and fast-tracking its expansion in the country.
PMP Pain Center was established in 2020 by Angelo Romero, President; and Naila Romero, Chief Finance Officer, a dedicated husband-and-wife team. Since its inception, PMP Pain Center has successfully navigated numerous challenges.
“PMP Pain Center began its operations during the pandemic, a time marked by significant uncertainty and unique challenges,” Angelo Romero recalls. Naila Romero adds, “There was a time we had to personally accompany and fetch our employees when serving clients so that we could operate daily.”
This unwavering commitment to delivering personalized service, even amidst a challenging start, has paid off significantly. In just four years, PMP Pain Center has expanded to 30 branches nationwide, offering a comprehensive range of treatments for pain and sports injuries across a broad patient demographic.
Even while operating a single clinic, the Romeros encountered hurdles in managing daily operations as their business grew. “When we started our operations, we relied on pen-and-paper reports combined with basic Excel formulas to monitor the clinic’s daily operations,” Angelo explains. “It was manageable at first, but as we opened more branches and took in more patients, we began having issues with data management.”
Turning to technology
Manual data entry and tracking led to inaccuracies, double bookings, and missed billings. The reliance on clinic managers for data management also resulted in errors and unaudited monetary losses. “Consolidating and balancing all branches’ month-end reports became tedious and chaotic,” Naila laments. Recognizing the need for a more efficient system, PMP Pain Center turned to HealthBlocks360.
HealthBlocks360, developed by Philippine-based HealthBlocks, is a comprehensive, cloud-based clinic management software. It offers solutions for inventory, financial, and patient record management, as well as appointment scheduling and billing. The platform is customizable to meet the specific needs of healthcare providers.
Streamlining clinic operations
PMP Pain Center was established in 2020 by Angelo Romero, President; and Naila Romero, Chief Finance Officer, a dedicated husband-and-wife team.
PMP Pain Center, under the foresight of its owners, the Romeros, has always prioritized patient care and expanding its customer base. Understanding the needs of both their employees and the customer lifecycle, they embraced technology to enhance their operations.
Naila highlights the transformation, stating, “With HealthBlocks360, it’s easier to consolidate all reports and remotely monitor all branches. What used to take manual effort, we now obtain in just one click.” She adds, “The system handles everything — from appointment setting, patient information, and sales monitoring to HMO collections. All of our previous challenges have been resolved.”
Recognizing that not all employees are tech-savvy, the Romeros chose a user-friendly software that simplifies report generation and patient record retrieval, making transactions and audits seamless. Angelo notes, “The system not only meets our current needs but also helps us identify potential future problems.”
Today, the technology has reduced employee workload, ensuring accuracy and efficiency, and positioning PMP Pain Center for sustained growth and enhanced patient care.
Collaboration and customization
PMP Pain Center has found great success in collaborating closely with HealthBlocks360, ensuring tailored solutions that meet their specific needs and goals. HealthBlocks360 offers a wide array of features including patient appointment scheduling, inventory tracking, financial management, and secure patient record handling — all accessible remotely via its cloud-based platform for seamless operation management.
The Romeros have personalized various aspects of HealthBlocks360 to enhance productivity and efficiency within their clinics. “We’ve customized productivity reports for our physical therapists, performance reports, and even bank reconciliation reports,” Naila explains. “This customization capability from HealthBlocks360 has significantly optimized our clinic operations.”
With the robust support of this management system, Angelo, Naila, and the PMP team are focusing on expanding their network. Their future plans include collaborations with academic institutions and physical therapy schools, as well as expanding services to private companies, aiming to establish themselves as the foremost physical therapy clinic in the Philippines.
“With HealthBlocks’ adaptability and efficiency,” Naila stresses, “we are confident in integrating all future branches seamlessly.”
PMP Pain Center’s proactive approach in seeking and leveraging innovative technology, one shown by its successful partnership with HealthBlocks360, demonstrates how organizations in healthcare management are thinking ahead and recognize the need for streamlined operations that elevate patient care.
About PMP Pain Center:
Pain Management Plus (PMP) Pain Center is a leading physical therapy clinic offering evidence-based treatment and protocols spearheaded by affiliated medical doctors and licensed physical therapists. Established in January 2020, PMP Pain Center has over 30 branches nationwide.
About HealthBlocks360
HealthBlocks360, developed by HealthBlocks, Inc., a subsidiary of MaroonStudios, Inc., is a cloud-based clinic management software offering solutions for inventory, financial, patient records, appointment scheduling, billing, and more. Tailored to the Philippine healthcare community, it enhances efficiency and effectiveness in clinical operations.
About MaroonStudios, Inc.
Founded in 2014, MaroonStudios, Inc. is an IT company committed to advancing the Philippines into a first-world economy through innovative software technologies. Known for their smart-creative engineers, MaroonStudios has excelled in global competitions, perfecting their software processes to world-class standards while serving numerous organizations worldwide.
In 2016, MaroonStudios received seed funding from Sagesoft Solutions and Bonifacio Triangle Capital Holdings, leading to the launch of its health IT subsidiary HealthBlocks, Inc. in 2018, focused on providing modern, affordable healthcare management solutions.
Start your pain management journey with PMP Pain Center. Explore how HealthBlocks360 can elevate patient care and enhance operational efficiency. For more details, visit the websites of PMP Pain Center and HealthBlocks360 today.
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SAAVEDRA-LED Citicore Energy REIT Corp. (CREIT) booked an attributable net income of P334.14 million for the second quarter (Q2), up 5.7% from the previous year’s P316.08 million, mainly driven by additional revenues from new assets acquired in 2023, which were funded by green bonds.
Gross revenues went up by 5.8% to P448 million from P423.53 million a year ago, the company said in a regulatory filing on Monday.
Its gross expenses for the April-to-June period fell by 2.8% to P26.07 million from P26.83 million last year.
From January to June, the company’s attributable net income climbed by 11.7% to P693.41 million versus the P621.04 million a year ago.
“The increase is mainly related to full take-up of incremental revenues from the assets acquired in 2023 which were financed by the green bond issuance,” CREIT said.
Revenues were higher by 15.1% to P920.85 million. Gross profit increased by 16% to P868.71 billion, translating to a gross profit margin of 94%.
“The increase [in gross profit] is related to the company’s expansion of leasing activities arising from various acquisitions of freehold assets out of the green bond’s proceeds, which have a full impact of revenue recognition this year,” the company said.
During the period, CREIT’s gross expenses went up by 2.2% to P52.14 million from nearly P51 million a year ago.
CREIT is the Philippines’ first real estate investment trust listing with a focus on renewable energy. It specializes in owning sustainable infrastructure projects, including income-generating renewable energy properties across the Philippines.
CREIT’s sponsor, Citicore Renewable Energy Corp., has over five gigawatts of project pipeline in varying stages of development, with its first gigawatt well underway. — Sheldeen Joy Talavera
THE RETURN of in-person events has been fueling the demand for MICE (meetings, incentives, conferences, and exhibitions) facilities across the Philippines. There’s no doubt that developers are cashing in on this gargantuan need for massive convention centers. The strong take-up for this sub-segment should also be buoyed by the rise in foreign tourists, including business travelers.
Filipino Swifties will definitely be glad to welcome and hear Taylor Swift live in the Philippines. The clamor to eventually host the multi-awarded performer has been compelling property firms to build massive convention centers that can accommodate Taylor’s fans. But what’s interesting is that developers are also trying to capture demand from business travelers who want to convene in person. Colliers believes that despite the availability and proliferation of online platforms, nothing replaces people’s desire to physically network and interact. This is particularly true for Filipinos, considered highly sociable beings. Already, there are plans to develop a massive convention center within Villar City, while the government has announced its plan to build the P18 billion ($314 million) New Philippine International Exhibition Center, which will have 108,000 square meters of exhibition/event space and host up to 150,000 attendees. Once completed, it will become the largest exhibition venue in Southeast Asia. It’s go big or go home for MICE development in the Philippines.
Colliers believes that the establishment of more MICE and co-working facilities should complement the accommodation and dining packages that hotels will offer to business travelers. The integration of these facilities is of utmost importance, especially in business hotels located in major business districts in Metro Manila, Pampanga, Cebu, and Davao. The Tourism department is also priming the Philippines as a major MICE destination, and this should enable the country to corner major global MICE events (including Taylor Swift’s concert and related promotional activities) and further boost tourist arrivals and spending across the archipelago. Colliers believes that previous hosting of MICECON events in Clark, Cebu, and Davao should help promote the Philippines’ viability as a MICE hub in the ASEAN region.
THRIVING MICE OPPORTUNITIES FOR HOTEL DEVELOPERS Four- and five-star hotels are likely to benefit from the return of in-person corporate events and the resurgence of business travel. Property exhibits, pharmaceutical product launches, and overseas employment summits are among the events that help drive occupancies of hotels and are primarily hosted in hotels’ meeting rooms and exhibition centers. Hotel operators should maximize the return of these in-person events and tap corporates by offering attractive packages. Hotel operators should also work closely with the Tourism department, which is actively enticing international organizations to mount their events in the country. The department is also priming the Philippines as a key MICE destination in Asia, and this should result in the holding of international MICE events in the Philippines, especially in Metro Manila, Clark in Pampanga, Cebu, and Davao.
MORE FOREIGN BRANDS IN KEY AREAS Colliers believes that now is an opportune time for foreign brands to expand their presence in the Philippines, given the planned modernization of the country’s international airports and the projected rise in international arrivals. The Department of Tourism is aiming to attract 7.7 million foreign visitors this year, up from 5.45 million in 2023 and 2.65 million in 2022. The government has also set a lofty goal of attracting 12 million international tourists by 2028. This optimism has been enticing foreign hotel operators to expand their presence across the Philippines. Sofitel Philippine Plaza Manila has officially closed its doors on July 1, 2024, but is expanding its presence in key destinations such as Cebu and Clark in Pampanga. Accor Hotels will also be developing a 175-room Ibis Styles and a 250-room Mercure Hotel in Subic, Zambales. Radisson Hotels also announced that they will be launching Radisson Blu in Cagayan de Oro, as well as other Radisson brands in Cebu. Other foreign-branded hotels in the pipeline will come from Sheraton, Dusit Thani, Citadines, and Tryp by Wyndham. Colliers recommends that developers be on the lookout for upcoming convention centers and soon-to-be modernized airports outside the capital region for their hotel expansion plans.
OCCUPANCY SLIGHTLY SOFTENS Average hotel occupancies in Metro Manila reached 63% in the first half of 2024, lower than the 65% in the second half of 2023 due to new supply. By end-2024, we expect average occupancy to hover between 60% and 65% as the number of returning overseas Filipino workers is likely to pick up during the holiday season.
The holiday-induced increase in demand for MICE and other in-person events should also help prop up occupancies in the second half of 2024.
NEW KEYS IN QC AND BAY AREA In the first half of 2024, Colliers recorded the delivery of 2,700 rooms, more than triple compared to 797 rooms a year ago. Quezon City (QC) accounted for nearly half of the new supply with the delivery of Hop Inn North EDSA (187 rooms), Ibis Styles Manila Araneta City (286 rooms), Citadines Roces (200 rooms), and Solaire North (526 rooms), Quezon City’s first five-star hotel. The Grand Westside Hotel also opened in the Bay Area and is now the largest hotel in the country with 1,530 rooms. In 2024, we forecast the completion of 4,560 rooms, lower than our earlier forecast of 5,100 rooms due to construction delays.
Among the hotels due to be completed in the second half of 2024 are Ridgewood Premier Hotel in C5 Road, Somerset Valero Makati, Seda Hotel One Ayala, Seda Hotel Arca South, Ascott DD Meridian Park, and Westside City Resorts World. The Bay Area will likely account for nearly half of the new supply.
Joey Roi Bondoc is the director and head of Research of Colliers Philippines.
LISTED Filinvest REIT Corp. (FILRT) said that 16 out of 17 buildings, equivalent to 94% of its property portfolio, are now powered by renewable energy (RE).
The recent additions to the company’s green portfolio are Filinvest Axis Tower 1 and Filinvest Cyberzone Cebu Tower 1, which transitioned to renewable energy after renewing their supply contracts with FDC Utilities, Inc. in June, FILRT said in a statement to the stock exchange on Monday.
Filinvest Three also transitioned to renewable energy under the government’s Green Energy Option Program (GEOP) on July 26.
“With these recent additions, 16 out of FILRT’s 17 Grade A buildings, or 94% of the portfolio in terms of the number of properties, are now supplied with 100% renewable energy as of July 2024,” the company said.
The GEOP is an initiative of the Energy department that empowers users to choose renewable energy as their primary power source.
Other FILRT buildings powered by renewable energy include Vector One, Vector Two, Vector Three, iHub 1 and 2, Filinvest One, Filinvest Two, Plaza A, Plaza B, Plaza C, Plaza D, Plaza E, and 5132 Building.
The only nonrenewable energy powered building in FILRT’s portfolio is the Capital One building in Alabang, which has a direct contract with its retail electricity supplier and coordinates independently with its chosen supplier.
“Our goal is to ensure that all our properties are not only economically viable but also environmentally responsible. This success is shared with our tenants, who are equally dedicated to our sustainability goals,” FILRT President and Chief Executive Officer Maricel Brion-Lirio said.
For the first half, FILRT saw a 7% increase in its net income to P601 million from P561.31 million a year ago. Revenue dropped by 11% to P1.4 billion while costs and expenses also fell by 3.1% to P643 million.
FILRT shares were unchanged at P3.09 per share on Monday. — Revin Mikhael D. Ochave
Corporate leadership entails business transparency, integrity, and accountability, which are manifested in SM’s publication of Integrated and Sustainability Reports, its conduct of forums and public briefings, and its accessible company website, among others. Transparency invites all forms of feedback, including scrutiny, which SM welcomes from its investors and all stakeholders. We use feedback to improve our corporate governance (CG) and Environmental, Social, and Governance (ESG) initiatives alongside business performance. Doing this expands and further strengthens the circle of business trust such that investors, shareholders, and stakeholders see actual results of efforts towards actively engaging with them.
SHARED RESPONSIBILITY Good governance becomes an even more effective tool when it is a shared responsibility and when everyone does his or her share in upholding the values of fairness, accountability, and integrity.
While the tone is set from the top, it is crucial that everyone in the organization should be involved not as mere participants but as stakeholders. SM directors, key officers and leaders attend CG training at least annually pursuant to regulatory requirement. Such a venue is used to keep leaders and management abreast of CG and ESG trends that affect business performance and strategies.
Other than SM’s annual stockholders’ meeting, the company communicates and engages with all of its stakeholders through various communication channels, such as social media and the company website. SM recognizes that the business becomes more meaningful to its customers, shareholders, and all other stakeholders when they can take part in the growth journey.
SM Investments practices good CG in all its dealings with all stakeholders, investors, business partners, creditors, customers, and employees because it believes that good CG will provide long-term growth, sustainability, and success. Its good CG framework and practices are part of the company’s core values on fairness, integrity, accountability, transparency, and stakeholder engagement. The company is recognized for practicing good CG through the ASEAN Corporate Scorecard alongside various awards and recognition.
In SM, running the business is anchored on values set by its founder, Henry Sy, Sr. or Tatang as he was fondly called. As part of its DNA to serve communities, the company values encompass the ESG aspects of the business from the get-go.
In a book written by Daniel Aronson called The Value of Values, he explains a framework called CORE which stands for Customer, Operations, Risks, and Employees.
Aronson said that the “crux of any business” are the customers. In a similar manner, Tatang instilled a high standard of service to SM’s patrons with customers at the heart of SM for 65 years.
The author also explains that when companies assess their operations through the lens of their values, they “uncover hidden inefficiencies.” The kind of business pragmatism in SM becomes a good tool in confronting complex business challenges such as the recent pandemic. It ensured sustainable returns to shareholders while still upholding the regulatory and environmental standards. This also applies to SM’s practical approach towards sustainability where it assesses what is feasible and works at where it can make the most impact such as in energy efficiency, efficient use of water resources, waste management and community engagement.
As examples, SM’s property development arm, SM Prime Holdings, is working towards reducing its ecological footprint through solar rooftops, water recycling systems, the adoption of air conditioning inverters and installation of standard Light-Emitting Diode (LED)-lighting and motion detectors on its escalators, solid waste management, advanced water conservation practices and green building developments.Currently, it sources more than 50% of its electricity from renewable energy across all its properties and facilities nationwide.
SM has been recycling water since the 1990s, treating an average of 1 billion gallons annually in past years to repurpose for mall operations including toilet cleaning and landscaping use. It has integrated rainwater harvesting systems in over 30 malls, particularly in flood-prone areas. It made another breakthrough in water usage by treating rainwater into potable water in SM City Baguio.
SM Prime also partnered with GUUN Co. of Japan to actively participate in developing infrastructure for systematic waste management and resource recovery.
The third is all about risks. “Companies often identify risks sooner when seeking to further their values,” says Aronson. Risk means that the vast legacy of the conglomerate would be at risk.
To help manage risks, SM has started to integrate ESG risks into its risk registers, realizing that these need special attention because of their evolving, interconnected, and long-term nature.
The most important point Aronson made is about employees and that if the company wants to get the best people, their business values should align with the company’s.
SM employees are educated on CG and ESG through the employee onboarding and training program and awareness campaigns. Through the Orientation for New Employees of SM (ONE SM), new employees are given an overview of SM’s CG framework, including the different corporate policies and its various components. A substantial portion of the orientation is devoted to discussing SM’s core values and the Code of Ethics, highlighting the roles that each can play in the development of the organization’s CG culture. The Governance, Risk and Compliance Group collaborates with the Human Resources Group, Internal Audit Group, and other teams to continue improving this program for all employees.
SM’s teams exemplify Tatang’s entrepreneurship, drive, teamwork, leadership, and, most of all, business integrity. What Tatang proved is that acting on one’s good governance values can be a very good business strategy. And in his case, it was all about the philosophy that business growth and social growth go hand in hand.
The mantra of good CG cannot be just about the company and its shareholders. It must go beyond compliance with regulatory directives. It must consider fair and acceptable behavior, among others, to those who are more vulnerable, even if it means accruing less to the bottom-line.
One can always talk of governance at length but the true challenge, however, is not in extolling the virtues of good CG. Rather, it is what happens after that.The challenge is measuring howfar we have moved forward and how much of the CG proactive culture genuinely influences our ways of working. What we want to achieve is having the comfort that values, principles and practices are fully in place, reviewed and updated even when no one is looking and even if it does not always pay off.
Amando “Say” M. Tetangco, Jr. has been serving as the first independent director chairman of the Board of SM Investments Corp. since 2023. He is also the vice-chairman of SM Prime Holdings, Inc., and is an independent director of other companies. Prior to joining SM, Mr. Tetangco was a career central banker for over four decades.He eventually assumed the post of governor of the Bangko Sentral ng Pilipinas and chairman of the Monetary Board, serving two consecutive six-year terms from July 2005 to July 2017.
DMCI HOMES and Robinsons Land Corp. (RLC) Residences said that Cadence, the inaugural tower of their joint-venture development, Sonora Garden Residences, has sold 56% of its units.
Located in Robinsons Las Piñas Complex along Alabang-Zapote Road, the three-tower project began its turnover of units on July 27.
“The sales take-up is doing very well since we physically opened the project for viewing last March. The sales continue to show an upward trend over the past few months,” DMCI Homes told BusinessWorld via an e-mailed statement on Aug. 8, adding that Cadence is already 56% sold.
DMCI also said that both companies still expect P13 billion in revenue from Sonora Garden Residences and P6 billion for the Cadence building.
“Sonora Garden Residences is still priced competitively at P128,000 per square meter (sq.m.) at the moment vs. other developments in the area that can go as high as P190,000 per sq.m.,” DMCI said.
The firm also said that the upcoming opening in the fourth quarter of some infrastructure near the project will further benefit investors by improving the project’s accessibility.
The 1.45-hectare Sonora Garden Residences offers a mix of one-, two-, and three-bedroom units ranging from 28 to 83.5 sq.m., ideal for young professionals and startup families.
“The spacious units are complemented by expansive open spaces, lush gardens, and a variety of resort-inspired amenities, all of which perfectly blend with the relaxed atmosphere of Las Piñas City,” DMCI said.
The amenities include a kiddie pool, leisure pool, lap pool, and snack bar.
Residents can access the Sky Lounge, designed for family gatherings and community events, with a view of the southern metro’s cityscape.
Sonora Garden Residences also offers proximity to Robinsons Place Las Piñas, with access to various retail and dining options, and to Las Piñas, Zapote, and Dr. Arcadio Santos stations of the Light Rail Transit Line 1 Cavite extension project.
“Once completed, travel time between Quezon City and Cavite will be reduced from an hour and a half to just 25 minutes,” it said.
The project is minutes away from Dr. A. Santos Ave. (formerly Sucat Road) and the Manila–Cavite Expressway, providing convenient travel around the metro and to southern tourist destinations like Tagaytay, the firm said.
“With its strategic location, comprehensive amenities, and thoughtfully designed living spaces, Sonora Garden Residences is poised to redefine urban living in Las Piñas City, promising a serene and convenient lifestyle for its residents,” DMCI said.
THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Monday as it saw strong demand and even as rates mostly inched up as the market awaits the Bangko Sentral ng Pilipinas’ (BSP) policy decision this week.
The Bureau of the Treasury (BTr) raised P20 billion as planned from the T-bills it auctioned off on Monday as total bids reached P52.535 billion, or more than twice the amount on offer. This was higher than the P47.298 billion in tenders recorded at the Aug. 5 T-bill auction.
Broken down, the BTr borrowed P6.5 billion as programmed from the 91-day T-bills as tenders for the tenor reached P15.29 billion. The three-month papers were quoted at an average rate of 5.9%, 7.2 basis points (bps) above the 5.828% recorded last week. Accepted rates ranged from 5.878% to 5.929%.
The government likewise made a full P6.5-billion award of the 182-day securities as bids for the tenor reached P17.26 billion. The average rate for the six-month T-bill stood at 6.093%, up by 3.1 bps from the 6.062% fetched last week, with accepted rates at 6.074% to 6.1%.
Lastly, the Treasury raised the planned P7 billion via the 364-day debt papers as demand totaled P19.985 billion. The average rate of the one-year debt inched down by 1.2 bps to 6.062% from the 6.074% quoted for the tenor last week, with the BTr only accepting bids with this yield.
At the secondary market before the auction, the 91-, 182-, and 364-day T-bills were quoted at 5.8429%, 6.1056%, and 6.1977%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data provided by the Treasury.
The government made a full award of the T-bills as the offer was met with strong demand, with investors seeking to lock in returns from longer tenors in anticipation of the start of the BSP’s easing cycle, a trader said in a text message.
“Treasury bill average auction yields were again mostly slightly higher after the faster inflation rate in July and the faster-than-expected GDP (gross domestic product) growth rate that could reduce the possibility of a BSP policy rate cut as early as Aug. 15,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message on Monday.
Analysts are divided on the Monetary Board’s rate decision this week as faster inflation in July caused BSP Governor Eli M. Remolona, Jr. to take a less dovish policy stance.
A BusinessWorld poll showed that nine out of 16 analysts surveyed expect the central bank to deliver a 25-bp rate cut at Thursday’s review.
This would bring the target reverse repurchase rate to 6.25% and would be the first reduction in benchmark borrowing costs since November 2020, or during the height of the coronavirus pandemic.
The BSP has kept its policy rate at an over 17-year high of 6.5% since October 2023 following cumulative increases worth 450 bps.
The Monetary Board is now “a little bit less likely” to cut rates at this week’s policy meeting following the elevated July inflation print, Mr. Remolona said last week, adding that they remain open to off-cycle moves.
Headline inflation picked up to a nine-month high of 4.4% in July from 3.7% in June, the Philippine Statistics Authority (PSA) reported last week. This was slower than the 4.7% print in the same month a year ago and was within the BSP’s 4%-4.8% forecast for the month.
However, this was the fastest print in nine months or since the 4.9% clip in October 2023. It also marked the first time since November that inflation exceeded the central bank’s 2-4% annual target.
Meanwhile, Philippine GDP expanded by an annual 6.3% in the second quarter, the PSA reported separately last week. It was stronger than the revised 5.8% growth in the first quarter and 4.3% in the second quarter of 2023.
For the first semester, economic growth averaged 6%, hitting the low end of the government’s 6%-7% target.
On Tuesday, the BTr will offer P30 billion in reissued seven-year Treasury bonds (T-bonds) with a remaining life of six years and 11 months.
It wants to raise P220 billion from the domestic market this month, or P80 billion through T-bills and P140 billion via T-bonds.
The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.48 trillion or 5.6% of gross domestic product for this year. — A.M.C. Sy
CAST and crew of Tumandok with the Cinemalaya Organizing Committee. — SCREENGRAB FROM CINEMALAYA FACEBOOK PAGE
TUMANDOK, a film that follows a 16-year-old chieftain’s daughter as she and her people fight for their ancestral land in Panay, was the top winner at the 20th edition of the Cinemalaya Independent Film Festival, bagging five awards including Best Film and Best Screenplay at the awards night on Aug. 11 at Ayala Malls Manila Bay.
The film, directed by Richard Jeroui Salvadico and Arlie Sweet Sumagaysay, also won the Network for the Promotion of Asian Cinema (NETPAC) Award for Full-length Feature, Best Supporting Actor for Felipe Ganancial, and Best Original Music Score for Paulo Almaden and the Ati People of Kabarangkalan and Nagpana.
“[Tumandok is awarded the Best Film] for its focus on a marginalized sector of Philippine society; for its nearly epic sweep of the life and landscape of a people disempowered by the wealthy and the powerful and victimized by government neglect and corruption; for its highly convincing characters and effective ensemble acting by a cast of non-professional actors; and for its highly effective filmmaking in defense of the rights of indigenous people to their ancestral domain,” the citation read.
“Although this is our first full-length film, we take ourselves out of it because this film is the symbol of bravery and strength of the Ati community who co-authored, co-directed, and made this with us,” Ms. Sumagaysay said in her acceptance speech.
Named for the Ati word for “native” or “inhabitant,” the film is based on real accounts by the Atis in Barotac Viejo, Iloilo.
The next big winner of the night was Kono Basho, which bagged four awards including Best Director for Jaime Pacena II, Best Cinematography for Dan Villegas, and Best Production Design for Eero Yves Francisco.
The family drama follows Ella, played by Gabby Padilla, who reunites with her estranged half-sister in Japan at her father’s funeral, allowing them to heal from their respective traumas.
Ms. Padilla’s portrayal in Kono Basho earned her the Best Actress award “for her sensitive and very moving portrayal of a young woman navigating the cultural complexities of a foreign funeral while coming to terms with personal loss and family grief.”
Ms. Padilla shared her Best Actress award — a first in Cinemalaya history — with Marian Rivera,whowas recognized “for her spirited portrayal of a public school teacher risking life and limb to protect the sanctity of the ballot” in the film Balota.
Meanwhile, child actor Enzo Osorio was named Best Actor, for “his sensitive and very convincing portrayal of a boy who refuses to be silent and to be silenced about his abuse” in the film The Hearing, according to the citation.
In the short feature film category, Cross My Heart and Hope to Die took home the Best Short Film prize, its director Sam Manacsa also earning the Best Director award.
The short follows an unpaid office worker who finds comfort in a love interest through his constant phone calls.
“[Cross My Heart and Hope to Die won Best Short Film] for its heartbreaking portrait of overworked and underpaid women workers, and its subtle but mordant critique of their abuse and exploitation,” the citation read.
This year’s Cinemalaya was held at Ayala Malls Manila Bay in Parañaque because of the extensive ongoing renovation of its regular venue, the Cultural Center of the Philippines’ main building. The festival showcased 20 films in competition this year, with 10 full-length features and 10 short feature films. — Brontë H. Lacsamana
And the winner is…
FULL-LENGTH FEATURE FILMS • Best Film:Tumandok by Richard Jeroui Salvadico and Arlie Sweet Sumagaysay
• Best Direction: Jaime Pacena II for Kono Basho
• Best Actress: Gabby Padilla for Kono Basho; Marian Rivera for Balota
• Best Actor: Enzo Osorio for The Hearing
• Best Supporting Actress: Sue Prado for Kantil
• Best Supporting Actor: Felipe Ganancial for Tumandok
• Best Screenplay: Arden Rod Condez and Arlie Sweet Sumagaysay for Tumandok
• Best Cinematography: Dan Villegas for Kono Basho
• Best Production Design: Eero Yves Francisco for Kono Basho
• Best Editing: Dominic Bekaert for An Errand
•Best Original Music Score: Paulo Almaden, The Ati People of Kabarangkalan and Nagpana for Tumandok
• Best Sound: Jedd Dumaguina and Mario Consunji for An Errand
• NETPAC Jury Prize:Tumandok by Richard Jeroui Salvadico and Arlie Sweet Sumagaysay
• Special Jury Prize:Alipato at Muog by JL Burgos
• Audience Choice Award:Gulay Lang, Manong by BC Amparado
SHORT FILMS • Best Short Film:Cross My Heart and Hope to Die by Sam Manacsa
• Best Direction: Sam Manacsa for Cross My Heart and Hope to Die
• Best Screenplay: Sonny Calvento for Primetime Mother
• NETPAC Jury Prize:Abogbaybay by P.R. Monencillo
• Special Jury Prize:Pamalandong sa Danow by Breech Asher Harani
• Audience Choice Award: Primetime Mother by Sonny Calvento
ANG-LED conglomerate San Miguel Corp. (SMC) grew its first-half net income by 66% to P33.5 billion, carried by higher profits across its business segments.
First-half consolidated revenue rose by 15% to P789 billion, led by business units Petron Corp., San Miguel Global Power Holdings Corp. (SMGP), San Miguel Infrastructure, San Miguel Food and Beverage, Inc. (SMFB), and Ginebra San Miguel, Inc. (GSMI), SMC said in an e-mailed statement on Monday.
Operating income increased by 22% to P85.1 billion on higher margins in the power business and lower raw material costs in the food business.
“Our strong first-semester performance shows the resilience of our businesses even in a challenging market. We expect this positive momentum to continue throughout the year and deliver sustained value to all our stakeholders,” SMC Chairman and Chief Executive Officer Ramon S. Ang said.
On the food and beverage business, SMFB grew its first-half net income by 6% to P20 billion. Consolidated sales increased by 4% to P192.9 billion, while earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 5% to P33.9 billion.
San Miguel Brewery, Inc. saw a 1% increase in consolidated revenue to P75.1 billion on higher sales volume, while GSMI recorded an 18% increase in sales to P30 billion.
San Miguel Foods had a 3% sales increase to P87.8 billion, led by the double-digit revenue growth in prepared and packaged foods along with “resilient” poultry sales.
On the power segment, SMGP grew its first-half operating income by 56% to almost P23 billion, while EBITDA rose by 45% to P30.1 billion on improved margins from contracted volumes and contribution of higher-margin ancillary service from battery energy storage systems.
First-half revenue rose by 17% to P98.9 billion despite a lower average realization price caused by an overall decline in fuel prices.
On the fuel and oil segment, Petron recorded a 2% drop in first-half net income to P6 billion, while operating income rose by 8% to P17.3 billion.
Consolidated revenue increased by 21% to P444.5 billion from P367 billion last year as the company continued to register strong volumes in the Philippines and Malaysia, reaching 69.1 million barrels in the first six months, up 20% from the 57.6 million barrels sold last year.
On the infrastructure business, San Miguel Infrastructure saw a 9% increase in revenue growth to P18.1 billion, led by the 4% growth in combined tollways daily average volumes, which ended at 1.034 million vehicles. Operating income rose by 8% to P9.7 billion, while EBITDA increased by 9% to P14.7 billion.
On the cement business, Eagle Cement Corp., Northern Cement Corp., and Southern Concrete Industries, Inc. saw a 6% decline in first-half consolidated revenue to P19 billion.
Operating income rose by 31% to about P4 billion on the back of cost reductions and operating efficiencies, while EBITDA increased by 18% to P5.4 billion.
“Lower average selling price in response to the influx of imported traded cement weighed on its topline. However, the decline has been mitigated in part by stronger second-quarter sales volume,” SMC said.
On Monday, SMC shares dropped by 1.40% or P1.40 to P98.50 per share. — Revin Mikhael D. Ochave
With the robust support of this management system, Angelo, Naila, and the PMP team are focusing on expanding their network. Their future plans include collaborations with academic institutions and physical therapy schools, as well as expanding services to private companies, aiming to establish themselves as the foremost physical therapy clinic in the Philippines.
