Cash remittances up 2.9% in January

March 18, 2025 | 12:33 am

US dollar currency — US dollar bills are seen at a money exchange office. — REUTERS

By Luisa Maria Jacinta C. Jocson, Reporter

MONEY SENT HOME by migrant Filipinos rose by 2.9% year on year in January, the Bangko Sentral ng Pilipinas (BSP) said on Monday.

Cash remittances from overseas Filipino workers (OFWs) coursed through banks increased by 2.9% to $2.92 billion in January from $2.84 billion in the same month in 2024.

The 2.9% annual growth in January was a tad slower than the 3% expansion seen in December 2024.

Month on month, remittances declined by 13.7% from $3.38 billion in December.

Cash remittances in January were also the lowest level in two months or since $2.81 billion in November.

BSP data showed remittances from land-based workers jumped by 3.4% to $2.33 billion in January from $2.25 billion a year ago.

Sea-based OFWs sent home $587 million during the month, inching up by 0.9% from $582 million in the previous year.

“The growth in cash remittances from Saudi Arabia, the United States, Singapore, and the United Arab Emirates (UAE) mainly contributed to the increase in remittances in January 2025,” the central bank said.

In January, the US remained the top source of remittances, accounting for 41.2% of the total.

This was followed by Singapore (7.5%), Saudi Arabia (6.6%), Japan (5.7%), and the United Kingdom (4.7%).

The UAE (3.5%), Canada (3.1%), Taiwan (2.8%), Qatar (2.8%), and Malaysia (2.4%) were also main sources of cash remittances.

Remittances from the top 10 countries accounted for over 80% of overall remittances during the month.

Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said the 13.7% month-on-month drop in cash remittances is “not alarming” as this was a seasonal effect as the bulk of remittance flows is usually seen in the fourth quarter.

“The month-on-month slowdown of remittances is expected as the effects of the holiday season came to a close,” Reinielle Matt M. Erece, economist at Oikonomia Advisory and Research, Inc., said.

“Typically, remittances grow faster during the latter months of the year as families celebrate the holidays,” he added.

Meanwhile, central bank data showed personal remittances, which contain inflows in kind, increased by 2.9% to $3.24 billion in January from $3.15 billion in the same month in 2024.

“The increase was observed in remittances from both land-based and sea-based workers,” it added.

Remittances from workers with contracts of one year or more rose by 3% to $2.52 billion, while those with contracts less than one year went up by 2.5% to $650 million.

In the coming months, Mr. Erece said risks arising from global economic uncertainty could dampen remittance flows.

“This year, we should monitor the persistent global economic uncertainty caused by trade wars and geopolitical tensions, which may cause a bit of a slowdown in remittances as OFWs cushion the risks of higher living costs abroad,” he said.

Markets are pricing in the potential impact of US President Donald J. Trump’s barrage of tariffs on the rest of the world. Among these proposals is a reciprocal tariff that Mr. Trump has pledged to impose on all of the US’ trading partners.

“We should also monitor the exchange rate, influenced by the Fed and BSP’s respective monetary policies. A cautious Fed can cause a peso depreciation, enticing OFW remittances to take advantage of an elevated peso value of the dollar,” he added.

While the US central bank is expected to keep interest rates unchanged on Wednesday, its commentary on the impact of tariff policies on US inflation and growth will also be closely watched, Reuters reported.

Cash remittances rose by an annual 3% to $34.49 billion in 2024. The BSP expects remittances to grow by 3% this year.

Inflation could overshoot 2-4% range in second half — BSP

March 18, 2025 | 12:32 am

Public market — People are seen in Baclaran Market in Parañaque City, March 17, 2025. — PHILIPPINE STAR/RYAN BALDEMOR

THE BANGKO SENTRAL ng Pilipinas (BSP) said inflation could overshoot the 2-4% target range in the second half of this year amid base effects.

In its latest Monetary Policy report, the central bank said annual inflation is likely to settle within the 2-4% target band from this year to 2026 amid declining rice prices.

“However, inflation could exceed the target range in the latter part of 2025, primarily due to base effects from easing commodity price pressures in the corresponding period of 2024,” it said.

“Inflation is then projected to move closer to the midpoint of the target range in 2026, supported by an expected moderation in global commodity prices,” it added.

The BSP’s baseline forecasts for inflation are at 3.5% for 2025 to 2026. Accounting for risks, inflation could reach 3.7% in 2026.

In February, the consumer price index (CPI) sharply slowed to 2.1%, bringing headline inflation to 2.5% in the first two months.

For this year, inflationary pressures could come from “higher global oil and non-oil prices, peso depreciation, and recent above-expectation inflation readings,” the BSP said.

However, inflation could breach the 2-4% target range if crude oil prices rise, it said.

BSP estimates show that if crude oil prices average above $100 per barrel, inflation could hit 4.1% this year and 4.8% next year.

Based on the latest Development Budget Coordination Committee macroeconomic assumptions, Dubai crude oil is seen to range from $60 to $80 per barrel this year.

However, the BSP reiterated that risks to the inflation outlook have remained “broadly balanced.”

“Upside risks include potential increases in electricity rates, transport charges, and pork prices,” it said.

According to the BSP’s risk matrix, there is a high probability for a rise in pork prices and a low probability for elevated transport and electricity costs.

“Conversely, the main downside risk stems from the spillover effects of lower tariffs on imported rice to domestic rice prices.”

Rice inflation further decreased to 4.9% in February from the 2.3% drop in January. This was the lowest rice inflation print since the 5.7% contraction in April 2020.

Rice prices are seen to decline further after the Agriculture department declared a food security emergency on rice, as well as lowered the maximum suggested retail price of 5% broken imported rice.

According to the BSP’s calculations, the likelihood of inflation settling within target this year remains above 50%.

“For 2026, the probability of inflation remaining within the target range has increased to nearly 50%, with a corresponding decrease in the likelihood of inflation exceeding the upper limit of the target range.”

INFLATION EXPECTATIONS
Meanwhile, inflation is expected to remain within the Philippine central bank’s 2-4% target from this year until 2027, according to economists surveyed by the BSP.

Analysts’ average inflation estimates were unchanged at 3.2% for this year and 3.3% for 2026, according to the BSP’s Survey of External Forecasters.

Economists also expect inflation to settle at 3.4% in 2027, still within the target band.

“Forecasters identify several potential upside risks to the inflation outlook. These include the effects of geopolitical tensions and adverse weather conditions on commodity prices, particularly oil.”

“Other factors cited are base effects, uncertainties in international trade, potential upward adjustments to utility rates and transport charges, and proposed minimum wage increases.”

The analysts surveyed assigned a “high probability” of inflation remaining within target over the forecast horizon.

This year, economists expect an 83.2% probability that inflation will settle within 2-4% versus the 15.4% chance that it will exceed the target band.

“The likelihood of inflation falling within the target range is estimated at 84.4% for 2026 and 76.5% for 2027.”

Meanwhile, the respondents expect further policy easing by the central bank this year.

“Regarding monetary policy expectations, most analysts anticipate a loosening of the BSP’s stance in 2025, with projections ranging from 50 to 100 basis points (bps) of easing.”

After keeping rates steady in February, BSP Governor Eli M. Remolona, Jr. said a rate cut is still “on the table” at the Monetary Board’s meeting in April, signaling “a few more” rate cuts for the rest of the year.

The central bank unexpectedly kept rates steady at its February policy review, opting to keep the target reverse repurchase rate (RRP) at 5.75%. The BSP had delivered three straight 25-bp cuts at each of its meetings in August, October and December in 2024.

“Views on the 2026 target RRP rate are more diverse, spanning from a 75-bp reduction to no change. For 2027, a majority of respondents foresee the BSP continuing on an easing path.” — Luisa Maria Jacinta C. Jocson

Below-target growth likely in 1^st half of 2025

March 18, 2025 | 12:31 am

Infra-construction-building — CONSTRUCTION of a building is underway in Quezon City. — PHILIPPINE STAR/MIGUEL DE GUZMAN

PHILIPPINE economic growth is likely to fall short of the government’s target in the first two quarters, GlobalSource Partners said.

“Our assessments show that GDP (gross domestic product) may be expected to increase within a narrow band over the next two quarters — rising from just above 5.7% in first quarter to approximately 5.9% in second quarter,” GlobalSource country analysts Diwa C. Guinigundo and Wilhelmina C. Mañalac said in a report on March 14.

This would be below the Development Budget Coordination Committee’s (DBCC) 6-8% target band until 2028.

GlobalSource’s first-quarter growth forecast of 5.7% would be slower than the 5.8% print in the same period in 2024.

For the second quarter, GlobalSource’s 5.9% GDP growth projection would be slower than the 6.4% print in the same period in 2024.

“This modest upward trend is driven by resilient historical GDP performance, growth in the services sector, and short-term USD/PHP exchange rate effects,” GlobalSource said.

However, local and geopolitical risks may affect the growth outlook in the first half.

“If both domestic and geopolitical shocks occur in a big, adverse way, they could unsurprisingly alter the outcome of this initial analysis,” GlobalSource said.

National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan earlier this month said government growth targets may need to be revisited amid rising global economic uncertainty.

“It’s too early to change at this point but we need to be watchful and be flexible because of this uncertainty,” he said.

A DBCC meeting is scheduled to be held at the end of March.

Budget Secretary and DBCC Chair Amenah F. Pangandaman has said that the committee historically keeps its target unchanged during the first and second quarters of the year.

Earlier, Finance Secretary Ralph G. Recto said that “6-6.5% [growth] is doable for 2025.”

However, GlobalSource said the Philippine economy should grow faster than the DBCC’s 6-8% target.

“The economic scarring of the pandemic actually requires the Philippines to grow by much more than the targeted growth rates of 6-8% through the end of the Marcos administration. Persistent poverty and income inequality are additional imperatives to grow by much more,” it said.

During the MAP Economic Briefing and General Membership Meeting on March 12, Mr. Guinigundo said that Philippine GDP growth of 6-8% annually would bring the economy to around P60 trillion by 2036

“To overcome this setback, growth will have to be between 9% and 9.5% through 2028 to be able to return to the original growth path,” he said.

In 2024, the economy expanded by 5.6%, from the 5.5% print in 2023 amid subdued consumption and lower farm output. It fell short of the government’s revised 6-6.5% target.

“It’s easy to blame the onslaught of typhoons during the latter part of the year, which constrained economic expansion. Such weather disturbances could indeed explain part of the failure, but not the entire dynamics,” GlobalSource said.

The economy grew by 5.2% in the fourth quarter, slower than the 5.5% print in the same period in 2023 after a series of typhoons hurt agricultural output.

“Sufficient stock buffering, mangrove propagation, zonal building along the coasts could have also mitigated the effects of these supply shocks. Yes, food inflation likewise deterred economic growth because private consumption spending was generally restrained,” GlobalSource said.

NEDA Undersecretary for Policy and Planning Group Rosemarie G. Edillon attributed the weaker-than-expected GDP growth in 2024 to “extreme weather events, geopolitical tensions, and subdued global demand.” — Aubrey Rose A. Inosante

Actis invests $600M for 40% stake in MTerra Solar

March 18, 2025 | 12:12 am

MGEN Renewable Energy, Inc. (MGreen), through its subsidiary SP New Energy Corp. (SPNEC), said global investment firm Actis Rubyred (Singapore) Pte. Ltd. has completed a $600-million transaction to acquire a 40% equity stake in MTerra Solar, MGreen’s solar development platform.

“This landmark investment marks a major step forward in our mission to accelerate the clean energy transition in the Philippines. With MTerra Solar, we are reinforcing our commitment to delivering reliable, sustainable, and cost-effective energy solutions,” Emmanuel V. Rubio, president and chief executive officer (CEO) of MGen and SPNEC, said in a media release on Monday.

“This collaboration with Actis and MGreen strengthens our ability to meet the country’s growing energy demand while advancing a greener and more resilient energy future,” he added.

The deal’s closing follows the share subscription agreement signed in September last year between Terra Solar Philippines, Inc. — the project’s developer and an SPNEC subsidiary — and Actis.

MGreen is the renewable energy arm of Meralco PowerGen Corp., a wholly owned subsidiary of Manila Electric Co. (Meralco). The company holds a controlling stake in SPNEC.

With the signing of the subscription agreement, Actis will officially join the Filipino firms in developing and expanding MTerra Solar, which will include a 3,500-megawatt-peak solar farm and a 4,500-megawatt-hour battery energy storage system once fully commissioned.

“MTerra Solar is a marker of what’s possible in terms of scale and ambition with renewable energy in Southeast Asia. It represents the largest such project in this fast-growing region, and we’re delighted to be partnering with MGreen and MGen to deliver this critical project and accelerate the Philippines’ energy transition,” said Rahul Agrawal, partner and head of energy for Southeast Asia at Actis.

Once completed, the P200-billion MTerra Solar is expected to provide clean energy to approximately 2.4 million households under a 20-year, 850-MW mid-merit power supply agreement with Meralco.

The first phase of the project is scheduled for commercial operations by 2026, with the second phase set for 2027.

A syndicate of the country’s largest banks has committed around P150 billion in project financing.

MTerra Solar is part of MGen’s pipeline of projects aimed at achieving an attributable renewable energy capacity of over 1,500 MW by 2030.

“MTerra Solar began as an ambitious project and is now moving toward making a meaningful contribution to the government’s target of having 35% of the country’s energy sourced from renewables. Our collaboration with Actis is a pathway to achieving clean energy for Filipinos,” said Manuel V. Pangilinan, chairman and CEO of Meralco.

UBS AG Singapore Branch served as financial advisor to SPNEC. Latham & Watkins and Picazo Law acted as international and domestic legal counsel to MGreen and SPNEC. Morgan Stanley served as financial advisor, while Milbank and SyCip Law acted as international and domestic legal counsel, respectively, to Actis.

Sought for comment, Juan Paolo E. Colet, managing director at China Bank Capital Corp., said Actis’ investment “ensures that the necessary equity funding is in place to support the completion of the Terra Solar project.”

“Actis brings well-regarded energy infrastructure expertise that will certainly help Terra Solar execute and manage this massive project,” he said in a Viber message.

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 an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

SMC leads power generation with 22.44% market share — ERC

March 18, 2025 | 12:11 am

San Miguel Global Power — SAN MIGUEL GLOBAL POWER

THE ENERGY Regulatory Commission (ERC) said San Miguel Corp. (SMC) dominated the power generation sector with a 22.44% market share of the national grid as of end-2024.

SMC overtook Aboitiz Equity Ventures (AEV), the investment arm of the Aboitiz Group that controls Aboitiz Power, as the country’s largest power producer in terms of installed generating capacity and market share, the ERC said in a statement on Monday.

Data from the ERC showed that SMC had the highest installed generating capacity nationwide at 6,079.6 megawatts (MW).

Broken down, the company had an installed capacity of 5,519 MW in Luzon; 180.67 MW in Visayas; and 379.89 MW in Mindanao.

AEV came in next with a total capacity of 5,894.5 MW, accounting for 21.75% share in the national grid.

Lopez-led First Gen Corp., a leading renewable energy producer, cemented its position as the third leading energy player with a market share of 13.22%, translating to 3,583 MW of capacity to the national grid.

Pangilinan-led power distributor Manila Electric Co. inched up as the fourth largest power producer by generating a total capacity of 1,467 MW, representing market dominance at 5.42%.

Lastly, Ayala Corp., a conglomerate which controls renewable energy developer ACEN Corp., accounted for 5.28% share in the generation sector with 1,431.3 MW of capacity to the national grid.

Under Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001, no company or related group can own, operate or control more than 30% of the installed generating capacity per grid and 25% in the national scale.

As the country’s energy regulator, the ERC sets the caps for installed generating capacity and market share limitation annually, and may be adjusted as necessary, based on the maximum capacity of generation facilities.

In a resolution dated March 13, the ERC initially set the maximum installed generating capacity to the national grid at 27,096 MW. This is higher than the 25,567.3 MW set for 2024.

For Luzon, the regulator has capped the installed generating capacity for Luzon at 19,419.6 MW, 3,383.9 MW for Visayas, and 4,292.6 MW for Mindanao.

Power companies cannot exceed a market share of 6,774 MW in the national grid. Generating firms are not allowed to go beyond 5,825.9 MW in Luzon, 1,015.2 MW in the Visayas, and 1,287.8 MW in Mindanao.

The commission noted that there are “certain industry developments” that have not been reflected in the data set. Once ready and available, the commission will update the caps set for the year.

“All individuals and entities subject to the MSL (market share limitation) are reminded to strictly comply with the prescribed limits and promptly report to the ERC within fifteen days of exceeding these limits from the start of occurrence, including the reasons for non-compliance,” the regulator said.

SMC INCOME
In a related development on Monday, SMC announced a net income of P36.7 billion for 2024, compared with P44.7 billion in 2023.

“On a reported basis, net income stood at P36.7 billion, including foreign exchange adjustments,” SMC said in an e-mailed statement on Monday.

Core net income rose 22% to P52.3 billion, while operating income increased 11% to P160.8 billion.

Consolidated revenue grew 9% to P1.6 trillion, driven by higher sales volumes in the power, spirits, and fuel and oil segments, along with contributions from the beer and infrastructure businesses.

“Our strong 2024 performance reflects strategic growth, operational efficiency, and disciplined execution. We remain focused on strengthening and making our businesses more efficient while driving sustainability and long-term growth,” SMC Chairman and Chief Executive Officer Ramon S. Ang said.

San Miguel Food and Beverage, Inc. posted a 7% increase in net income to P40.9 billion, with consolidated sales rising 6% to P400.9 billion on higher volumes and market expansion.

San Miguel Foods’ net income surged 33% to P8.4 billion as sales grew 3% to P185 billion, driven by its protein and prepared and packaged food segments.

San Miguel Brewery Inc. saw a 1% increase in net income to P25.6 billion, supported by a 4% rise in sales to P153.4 billion.

Ginebra San Miguel’s net income grew 3% to P7.3 billion, as sales jumped 17% to P62.5 billion on strong consumer demand.

San Miguel Global Power Holdings Corp. recorded a 25% increase in net income to P12.4 billion, with revenue climbing 21% to P205.1 billion.

Petron Corp.’s net income fell 16% to P8.5 billion despite an 8% rise in revenue to P868 billion on higher sales volume.

San Miguel Infrastructure maintained growth, with revenue up 7% to P37.5 billion and operating income improving 12% to P20.3 billion.

The cement segment—comprising Eagle Cement Corp., Northern Cement Corp., and Southern Concrete Industries, Inc. — saw net sales decline 6% to P34.9 billion, while operating income increased 10% to P6.6 billion due to cost-control measures. — Sheldeen Joy Talavera and Revin Mikhael D. Ochave

Telcos to see modest growth, sustain strong credit profile, says CreditSights

March 18, 2025 | 12:10 am

Briefs 6 telco - BW FILE PHOTO — BW FILE PHOTO

PHILIPPINE telecommunications (telco) companies are expected to see modest growth this year while maintaining a strong credit profile, driven by continued data and broadband expansion, according to financial research firm CreditSights.

“Overall, we are comfortable with the resilient credit profiles of both Globe and PLDT, underpinned by their leading mobile and broadband market positions in the Philippines,” CreditSights said.

Pangilinan-led PLDT recorded a 21.4% increase in attributable net income for 2024, reaching P32.31 billion, fueled by all-time-high service revenue growth.

Consolidated revenue rose 2.8% to P216.83 billion from P210.95 billion in 2023, primarily driven by higher service revenues.

Telco core income, which excludes the impact of asset sales and losses from Maya Innovations Holdings, increased by 2.3% to P35.14 billion from P34.34 billion in 2023.

Meanwhile, Ayala-led Globe posted a full-year core net income of P21.50 billion for 2024, marking a 13.6% increase from P18.92 billion in 2023.

Its consolidated revenue grew 2% to P165.02 billion from P162.33 billion a year earlier.

PLDT and Globe saw sluggish revenue growth last year, CreditSights said, adding that mobile data remained a key growth driver for both telcos, supported by evolving consumer data consumption habits and rising smartphone adoption.

CreditSights expects Globe and PLDT’s credit metrics to grow modestly by about 0.1x to 0.3x this year.

Revenue and EBITDA (earnings before interest, taxes, depreciation, and amortization) growth for both firms is expected to remain in the low- to mid-single digits, as competition in mobile and broadband intensifies with DITO Telecommunity Corp.’s expansion.

The financial research firm noted that tight competition in mobile and broadband will be mitigated by Globe and PLDT’s data center revenues.

For instance, ST Telemedia Global Data Centres (STT GDC) Philippines’ 33-megawatt (MW) data center is expected to be operational by mid-2025, while PLDT’s VITRO Sta. Rosa was completed in 2024.

PLDT continues to explore options for selling a minority stake in its data center business.

The company previously engaged Japan’s Nippon Telegraph and Telephone (NTT) for a potential sale of up to 49% of its data center business, but the deal was eventually dropped.

PLDT also ended negotiations with fund manager CVC Capital Partners for the sale of its data center unit.

To date, PLDT, through its subsidiary ePLDT, Inc., operates 11 data centers, including the 50-megawatt hyperscale data center in Sta. Rosa, Laguna.

At the local bourse on Monday, PLDT shares rose by P3, or 0.22%, to close at P1,363 apiece, while Globe shares declined by P10 to P2,096 per share.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

Maynilad targets July 10 for IPO

March 18, 2025 | 12:09 am

Maynilad-water treatment facility — MAYNILADWATER.COM.PH

WEST ZONE water concessionaire Maynilad Water Services is targeting a July 10 listing for its P49.15-billion initial public offering (IPO).

The water provider filed a registration statement with the Securities and Exchange Commission and a listing application with the Philippine Stock Exchange (PSE) for the IPO on Monday, Maynilad said in an e-mail statement.

The offer period is set for June 25 to July 2, based on the company’s indicative timeline.

The IPO will involve up to 2.46 billion common shares at a maximum price of P20 per share, representing 30.45% of Maynilad’s total issued and outstanding capital stock.

The offering consists of 1.78 billion primary common shares, an overallotment option of up to 266.31 million primary common shares, an upsize option of up to 379.29 million common shares, and 36.31 million primary common shares to be offered to Pangilinan-led, Hong Kong-based investment holding firm First Pacific Co. Ltd.

If the indicative terms remain unchanged, Maynilad’s public listing could become the country’s largest IPO, surpassing the P48.6-billion stock market debut of food manufacturer Monde Nissin Corp. in June 2021.

IPO proceeds will be used to fund Maynilad’s 2025–2026 capital expenditure program for water, wastewater, and customer service and information system projects. A portion may also be allocated for general corporate purposes.

Maynilad is one of six IPOs expected by the PSE this year. The water provider has tapped BPI Capital Corp., HSBC, Morgan Stanley, and UBS as joint global coordinators and joint bookrunners for the IPO. BPI Capital Corp. will also serve as the domestic lead underwriter.

Signed into law on Dec. 10, 2021, Republic Act No. 11600 granted Maynilad a 25-year legislative franchise until 2047 to establish, operate, and maintain a waterworks system and sewerage and sanitation services in the West Zone service area of Metro Manila and Cavite province.

The law also requires Maynilad to offer at least 30% of its outstanding capital stock within five years from the grant of the franchise.

Maynilad serves parts of Manila, Quezon City, and Makati, as well as Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, and Malabon. It also supplies water to the cities of Cavite, Bacoor, and Imus, and the towns of Kawit, Noveleta, and Rosario in Cavite province.

Metro Pacific Investments Corp., which holds a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave

SM Prime to expand solar energy capacity this year

March 18, 2025 | 12:08 am

Solar_Panel_SM — SM City in Santa Rosa, Laguna — SMSUPERMALLS.COM

SY-LED property developer SM Prime Holdings, Inc. plans to expand its solar energy capacity this year as part of its sustainability initiatives.

The company aims to add 20 solar rooftop projects to optimize power consumption and enhance resilience against fluctuating energy costs, SM Prime said in a regulatory filing on Monday.

SM Prime currently operates 47 malls and properties with solar installations, with a total capacity of 63 megawatts.

In 2024, the company generated 27.6 gigawatt-hours (GWh) of clean energy, marking a 49% increase from 2023.

The continued rollout of solar panels across SM malls and developments has reduced its reliance on traditional power sources, cutting carbon emissions by 19,140.6 tons.

“Expanding our use of solar energy enhances the sustainability of our developments. This initiative also enables us to support the Interruptible Load Program (ILP) of the Department of Energy,” SM Prime President Jeffrey C. Lim said.

The ILP helps stabilize the grid during peak electricity demand by allowing distribution utilities and electric cooperatives to request large power consumers to use their own generator sets and power sources.

Participants include malls, large businesses, and factories with significant standby capacity, ensuring sufficient power supply when demand exceeds available resources.

Meanwhile, SM Prime’s parent company, SM Investments Corp. (SMIC), said it remains bullish on the country’s growth, driven by rising consumption.

“We believe that growth in the Philippines will continue to be consumption-driven. Seventy percent of our gross domestic product is consumption-driven, and our business is right within that footprint,” SMIC Executive Vice-President for Treasury, Finance, and Planning Erwin G. Pato said in an e-mail statement.

“Our offerings in retail, integrated property development, and financial services will continue to be key players in this consumption-driven growth,” he added.

SMIC recently announced a P60-billion share buyback program, the largest in Philippine corporate history, saying the conglomerate is “undervalued.”

“We’re having this buyback because we believe in our company and its growth potential,” Mr. Pato said.

In 2024, SMIC’s net income rose 7% to P82.6 billion, while its retail arm, SM Retail Inc., posted a 5% increase in net income to P20.9 billion.

“We’re a proxy of the Philippine economy because of our scale and the communities we serve. With lower interest rates, we believe this will help our macroeconomics and could lead our economic managers to achieve our inflation rate target within the 2% to 4% range. If that happens, it suggests a strong tailwind for the consumer story,” Mr. Pato said.

On Monday, SM Prime shares declined by 1.47% or 35 centavos to P23.45 apiece, while SMIC stocks rose by 0.62% or P5 to P813 per share. — Revin Mikhael D. Ochave

Sugar, renewables drag URC income down 2% to P12.5B

March 18, 2025 | 12:07 am

GOKONGWEI-LED food and beverage manufacturer Universal Robina Corp. (URC) saw its net income decline by 2% to P12.5 billion in 2024 from P12.8 billion in 2023, weighed down by lower profit from its sugar and renewables segment.

Sales rose by 3% to P161.9 billion on volume growth across all divisions, URC said in a regulatory filing on Monday.

Operating income dropped by 4% to P16.7 billion due to weaker profits from the sugar and renewables business, following a windfall in 2023. Core net income likewise declined by 3% to P12.2 billion.

URC’s branded consumer foods (BCF) segment posted a 2% sales increase to P109.5 billion.

BCF Philippines sales remained flat at P74.7 billion as value-for-money items outpaced the rest of the portfolio.

BCF International recorded an 8% sales growth to P34.8 billion, driven by strong volume and value expansion despite generally tepid consumer sentiment across Southeast Asia.

Sales from the agro-industrial and commodities group rose by 5% to P51.3 billion, as higher volumes across most segments offset price adjustments in feeds and flour.

URC also declared a dividend of P2 per share for stockholders on record as of April 11, with payout set for May 9. The figure is 5% higher than in the same period last year.

“We delivered strong cash generation and dividend growth while pivoting to stronger volume growth recovery, as consumer sentiments improve after absorbing multi-year inflationary pressures,” URC President and Chief Executive Officer Irwin C. Lee said.

“We expect further improvements in URC’s growth momentum going forward as we continue to provide new product innovations and better value offers to delight our customers and consumers with good food choices,” he added.

URC has earmarked over P8 billion for capital expenditures this year to support its growth plans.

On Monday, URC shares gained 1.12% or 80 centavos to close at P72.30 apiece. — Revin Mikhael D. Ochave

Hollywood studios embrace live experiences amid film, TV gloom

March 18, 2025 | 12:07 am

Netflix-Bridgerton — NETFLIX’s Queen’s Ball is a touring version of its hit show Bridgerton. — NETLIX.COM/CORINA MARIE

1 of 2

NETFLIX, INC. has had over 70 marriage proposals at the Queen’s Ball, a touring version of its hit show Bridgerton.

The events, which involve picking an attendee to be honored by the queen, are frequently posted online, according to Greg Lombardo, who heads the live experiences business at the streaming TV service.

“It just creates such conversation out there and supports that title in between those season releases,” Mr. Lombardo said on Friday at an industry event.

Netflix, Warner Bros. Discovery, Inc., and other entertainment companies are looking beyond films and TV shows, opening hotels, restaurants, and other attractions to deepen their relationships with viewers. Unlike other parts of the industry, where participants lament budget cuts, tepid movie ticket sales, and jobs moving overseas, the attractions business is booming.

Paramount Global’s hotel portfolio has expanded to 1,500 rooms from 200 in the past three years, according to Marie Marks, who leads the company’s experiences business. Another 2,000 rooms are in development, tied to classic Paramount films and its Nickelodeon kids brand.

Warner Bros., which is building a Harry Potter studio tour attraction in Shanghai, also has a hotel adjacent to a theme park in Abu Dhabi.

“The appetite to go out and do stuff has never been higher,” said Peter van Roden, executive vice-president for themed entertainment at the company. “The hotel’s just killing it down there.”

The three were among the executives speaking at a conference run by the Themed Entertainment Association, a trade group representing attractions designers.

Walt Disney Co. said in 2023 it planned $60 billion in capital expenditures at its experiences division over the next decade. That includes introducing new cruise ships and theme-park rides. Comcast Corp.’s Universal experiences division is in the midst of its greatest expansion, which includes a $7-billion theme park opening in May in Orlando, a horror-themed attraction in Las Vegas and a park for younger kids outside of Dallas.

“We are really looking into these different markets and really expanding the product that we already deliver,” Eric Parr, a senior vice-president who leads the creative studios at Universal, said on a panel at the event.

Not everything sticks. A high-end, Batman-themed restaurant in London closed after two years.

“That was not really about money-making,” Mr. Van Roden said. “It was about how could the DC franchise do an amazing, really cool eating experience.”

Netflix has opened restaurants such as Bites in Las Vegas, which serves food tied to its TV shows, including Orange is the New Mac (and cheese) and a Love Is Blind cocktail.

The company is establishing two, year-round Netflix Houses in malls this year, one in suburban Philadelphia and another in Dallas. They’ll feature experiences like waltzing on a Bridgerton set and the glass bridge challenge from Squid Game. Touring experiences have appeared in over 100 markets and can be tweaked to include local culture, Mr. Lombardo said.

There are some Netflix programs that may not work for the immersive experience, such as Ozark, which involves money-laundering, Mexican drug cartels and the occasional body being found in a lake.

“I’d be hard pressed to expect a lot of people to go to that,” Mr. Lombardo said. — Bloomberg

CinePanalo 2025 Pocket Reviews: Diving deep and finding limitations

March 18, 2025 | 12:06 am

By Brontë H. Lacsamana, Reporter

WHILE the seven full-length films and 24 student-led shorts of the 2^nd edition of Puregold’s CinePanalo Film Festival provide an exciting array of stories from all over the Philippines to see, a shadow looms over the event due to a stark omission.

Baby Ruth Villarama’s Food Delivery: Fresh From the West Philippine Sea was dropped from the line-up at the last minute, so the documentary about the situation in the West Philippine Sea (WPS) was unable to screen alongside the seven other feature films. The reason given for its removal was the rather vague “external factors,” which elicited whispers among the crowd on the film festival’s opening night, March 14, at Gateway Mall 2 Cineplex in Quezon City.

Like last year’s Cinemalaya film festival, which canceled the documentary Lost Sabungeros for security reasons and barely screened the anti-Ayala Land documentary Asog (Cinemalaya was held in an Ayala mall that year), CinePanalo is also under the mercy of its backers and sponsors. Why the festival chose not to stand by the WPS documentary it funded is a question that will probably never be answered, though speculation abounds.

But, of course, the show must go on, and the opening night’s proceedings were outwardly lively and filled with excitement for the entries having their premieres. Robbed of the chance to see the film I was most excited to watch, I opted for two others that also seemed to delve into the depths of their respective stories — figuratively and literally, as they are both also set by the sea.

Here are my reviews:

SALUM
Directed by TM Malones

Salum (meaning “to dive” in Hiligaynon) is about a father and daughter who work as scallop divers to earn a meager living in northern Gigantes Islands, in Carles, Iloilo, where shellfish is plentiful. While this setting offers great potential to educate viewers on the realities faced by divers there, this film only lightly touches on those issues and focuses on a family-oriented story.

The narrative is simple, centered on a father’s deep love for his daughter, although he is unable to provide the comforts that she deserves. Allen Dizon takes on the role of the father, Kosko, who has been left behind by his wife who is in Japan and he now struggles to provide for his only daughter. Christine Mary Demaisip plays 13-year-old Arya who is more than happy to help out her father in diving for scallops, though she wishes they could afford to buy her a phone.

Both leads, nominated for Best Actor and Actress at the festival, assume their roles with ease. The former embodies the pressures of a father who is driven mad by his limitations and by the rumors of unimaginable wealth that can ease their situation. However, it’s kind of odd that he’s the only character who speaks Tagalog while the rest speak Hiligaynon. Demaisip, though young, is as natural an actress as she is a swimmer, expressing the concern a daughter would have for a father under pressure. Both Dizon and Demaisip can be commended for actually doing the diving in the film, too, using the round flippers called yapak that real scallop divers in the region use.

The film paints the life of Filipino shellfish divers as one filled with life-threatening risk and exploitation. We briefly see compressor diving, which differs from freediving as it uses a basic form of surface-supplied assistance in the form of a battery-powered compressor that feeds air into a long hose for a diver to use underwater. This is dangerous due to the unreliable nature of the outdated, rusty equipment that can break down at a moment’s notice, and also due to the lack of technical stops done from the depths. Kosko mentions that his father was a victim of this, as many divers resorting to the method suffer from decompression sickness that can lead to blindness, paralysis, or even death.

Then there is a rumor that one of the clams Kosko and Arya sold to a rich businessman allegedly contained a pearl worth millions. Dizon then convincingly takes on a father’s feverish descent into finding treasure to give his daughter a comfortable life. The film speaks to the dangers of letting such false hopes and ambitions lead people to their downfall, similar to how the divers resort to unsafe practices like compressor diving. But the film never clearly makes this connection, instead throwing in issues of land ownership with Kosko mentioning that his father’s family used to own Silangan Island, until they were pressured to sell it for a pittance to a developer who has now turned it into a resort.

Salum honors the perseverance of those making an honest living while also depicting the circumstances that lead them to poverty. However, its attempts to dive into (excuse the pun!) certain issues feels insufficient. Kosko’s brief madness is treated as a learning experience, though he goes so far as to wastefully shuck piles of clams and scallops and even break the law by using an unregistered boat. The tragedy of his situation, while compelling, never fully serves the realities of Filipino seafood diving that were presented in the film. Ultimately though, it’s a solid representation of the kind of uplifting story that CinePanalo is going for. That people are there to help, and that an honest living is the most noble, is a great conclusion to the drama, marked by excellently filmed diving footage. But Salum also cracks open exactly what limits projects that are submitted to the control of film fests — that the stories told are toned down to fit its limiting, uplifting, family-friendly criteria.

FLEETING
Directed by Catsi Catalan

Fleeting is a beautifully filmed love letter to the short yet sweet nature of improbable romances. It appears to be the softest and gentlest film in the lineup. It follows Janella Salvador as Gem, a dreamer who moves to Mati, Davao, to attend flight school and fulfill her ambition of becoming a pilot. There, her workaholic, fully online life clashes with the slow-living mantra of RK Bagatsing’s JC, the surfer owner of the resort and café she’s staying in, who actually turns out to be the black sheep heir of a cacao farm.

Salvador and Bagatsing, also nominated for acting awards at the festival, play their parts to perfection. This being director Catsi Catalan’s debut is not obvious as she manages to bring out the best of both the leads’ talents — a mix of ferocity and vulnerability on Salvador’s part, and a blend of arrogance and mystery on Bagatsing’s — while also giving us a nice film to look at. Fleeting is a love letter to the meeting of two worlds: the calm, meandering pace of provincial Davao Oriental and the frenetic pace and pressures of the city; the reliable ebb and flow of the waves at sea (representing JC’s love for surfing) and the overwhelming vastness of the picturesque sky (representing Gem’s love for flying); the full surrender to the present moment and the yearning to connect with the rest of the world.

There are echoes of the typical romance here, not exempt to cliched lines galore, except there is no major conflict to dramatically wedge the two characters apart. The film instead has them meet, dance around each other, come together in poignant moments of understanding, and ultimately come apart. It’s all stretched out, at times to its detriment, some parts just made to entice you to visit Mati and try sikwate hot chocolate (admittedly it entices very well!). But its approach to love is as tame and natural as a beachside view of the horizon parting the heavens and the earth.

The scenery makes for a quintessential travel-oriented romance, with Gem starting out as a basic city girl tourist on the beach who pushes for JC’s café to have Wi-Fi. None of it really goes anywhere as they are shown to easily adjust to each other later on, him agreeing to have her market the café on social media, and her no longer pushing him to install Wi-Fi.

There’s also a little issue with how the guy turns out to be rich, being able to come and go to his family’s farm as he pleases (which isn’t usually how the black sheep of any family would behave). The resort-café also seems to operate on its own logic, having existed long enough for Gem to find it despite supposedly almost going bankrupt, as if JC is so incompetent as to not know the basic rules of running a business. It’s as if his being a mysterious black sheep of a rich family is an excuse for all of this to happen — as per the formula of many other romcoms before it. Fleeting turns out to not be any different when it comes to that.

It achieves its purpose, though, promoting Mati as a picturesque destination that many audience members will want to look into for their next vacation. The premise is old and bland, yet gorgeously told as the visuals of sea and sky parallel the characters’ differing paths in life. Again, it’s good enough for a debut and fully in line with the best CinePanalo has to offer.

Converge eyes up to 16% revenue growth

March 18, 2025 | 12:06 am

CONVERGE ICT Solutions, Inc. expects its revenues to grow by up to 16% this year after posting a P10.8-billion net income for 2024.

In a regulatory filing on Monday, the listed fiber internet provider said its profit rose by 18.9% to P10.8 billion from P9.09 billion in 2023.

“With the company’s strong trajectory and the industry’s broad underserved market, the company’s well-engineered products are well-positioned to capitalize on this growth potential,” Converge said.

The company’s total revenues increased by 14.8% to P40.61 billion from P35.36 billion a year earlier.

Broken down, revenues from its residential business rose by 14% to P34.42 billion, while enterprise revenues grew by 22% to P6.19 billion from P5.08 billion.

Converge said its FiberX subscriber base expanded by 196,419 during the year, 57.9% higher than the previous year.

Its small and medium enterprise segment remained the company’s fastest-growing subsegment.

“At Converge, our vision has always centered on giving amazing digital experiences,” Converge Executive Vice-President and Chief Commercial Officer Benjamin B. Azada said.

In January, Converge secured a Tier 3 design certification for its Caloocan data center, which is expected to go online this year.

The certification signifies compliance with industry standards for maintainability and redundancy, Converge said, adding that the facility is designed to accommodate 300 racks.

In a regulatory filing on Monday, the listed fiber internet provider said its profit rose by 18.8% to P10.8 billion from P9.09 billion in 2023. — Ashley Erika O. Jose