Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 1841

Rupture on TC Energy’s NGTL gas pipeline sparks wildfire in Alberta

A section of TC Energy’s NGTL gas pipeline system in Alberta ruptured and caught fire on Tuesday, sparking a wildfire in a remote area, the company said.

“An initial ignition of natural gas at the rupture site is now extinguished. We are working to support Alberta Wildfire in their response to contain a secondary fire,” the company said in a statement on its website.

TC said there were no injuries and it was working closely with first responders in the region.

The fire broke out about 40 km (25 miles) northwest of Edson, Alberta, in Yellowhead County. Canadian broadcaster Global News said there was a plume of flames and smoke visible from many kilometers away.

Alberta Wildfire data showed one new active wildfire in the Edson forest area, which it listed as out-of-control and measuring 10 hectares.

TC Energy said it has isolated and shut down the affected section of the NGTL system. It activated emergency response procedures after being notified about an incident at about 11 a.m. (1700 GMT).

“The remainder of our system is operating normally and there are no commercial impacts at this time,” TC said.

The Canada Energy Regulator said it is sending inspectors to the area to monitor and oversee the company’s response and determine the impact of the incident.

NGTL is TC Energy’s natural gas gathering and transportation system for the Western Canadian Sedimentary Basin (WCSB). – Reuters

Judge temporarily blocks Ohio gender-affirming care ban

WESLEY TINGEY-UNSPLASH

 An Ohio judge on Tuesday temporarily blocked a Republican-backed state law banning gender-affirming care, such as puberty blockers and hormones, for transgender minors from taking effect later this month.

Judge Michael Holbrook of the Franklin County Court of Common Pleas said that the two transgender children and their families who are suing to challenge the law, which would also prevent transgender girls from competing on girls’ sports teams, would be permanently harmed if the law takes effect on April 24.

The order will remain in place for two weeks, or until a hearing on the families’ motion for a longer-term order blocking the law. Ohio Attorney General Dave Yost in a statement said he was confident the law would be upheld.

“This is just the first page of the book,” he said. “We will fight vigorously to defend this properly enacted statute, which protects our children from irrevocable adult decisions.”

Ohio is one of at least 22 Republican-controlled states that have passed laws restricting gender-affirming care. Tuesday’s ruling comes a day after the U.S. Supreme Court allowed Idaho to enforce its ban while it appeals a lower court order blocking it.

Ohio’s Republican-controlled legislature passed its law in January.

The vote overrode the veto of Governor Mike DeWine, a Republican who said he made his decision after hearing from parents of transgender youth that gender-affirming care had been lifesaving for their children.

In his ruling, Holbrook said the families who challenged the law were likely to succeed in their argument that it improperly addressed two separate subjects, healthcare and sports, rather than a single subject as required by the Ohio constitution.

He did not directly address whether they were likely to succeed in proving that the law was discriminatory and took away families’ right to make choices about their healthcare.

“We are thrilled and relieved that Ohio’s ban on gender-affirming healthcare has been halted and that transgender youth can continue, for the near term at least, to access medically necessary healthcare,” Freda Levenson of the American Civil Liberties Union of Ohio, a lawyer for the plaintiffs, said in a statement. – Reuters

EU auditors say lobbyists can easily slip under bloc’s radar

REUTERS

BRUSSELS – Lobbyists can easily bypass EU transparency rules to influence policy, the 27-nation bloc’s auditors said on Wednesday.

The European Court of Auditors’ (ECA) report comes as European Union institutions discuss a new Ethics Body to guide the conduct of officials and ahead of a planned review of the bloc’s transparency register of lobbyists.

That review follows a 2022 cash-for-influence scandal at the heart of the European Parliament in which Qatar and Morocco have been accused of bribing decision-makers.

Qatar has denied wrongdoing. Morocco has complained of “judicial harassment” after a probe by Belgian prosecutors.

More recently, European Commission President Ursula von der Leyen said her pick for the EU’s new business envoy had decided not to take up the post, after critics alleged cronyism.

Any accusations of wrongdoing risk damaging the EU’s reputation ahead of European Parliament elections in June.

ECA warned the transparency register risked becoming “a paper tiger” unless it was significantly bolstered.

“A range of lobbying interactions with EU lawmakers can be hidden from the public eye,” said Jorg Kristijan Petrovic, who lead the audit, which identified major loopholes.

These include requirements to register meetings between lobbyists and high-ranking staff only and solely for pre-scheduled appointments. The report also said that funding for more than one in three NGOs was unclear.

Currently, a formal record is not required for spontaneous meetings, unscheduled phone calls and email exchanges, said ECA.

New EU ethics rules are expected to set standards regarding acceptance of gifts, hospitality or travel, meeting lobbyists, financial interests, and on conditions for activities after terms have ended.

While roughly 12,500 organizations are listed in the EU register, watchdog Lobbycontrol estimates up to 29,000 lobbyists are active in Brussels where bloc-wide policies are honed.

Lobbycontrol campaigner Max Bank said Big Tech has stepped up its lobbying considerably in recent years, spending 113 million euros ($120 million) in 2023, with the five largest companies alone spending 33 million euros in the EU hub.

“No one is naive anymore after Qatar, money can buy your influence,” said Paul Tang, a Dutch socialist member of the 705-strong European Parliament. – Reuters

IMF hikes growth forecast for PHL

The International Monetary Fund (IMF) sees the Philippine economy growing by 6.2% this year. — PHILIPPINE STAR/RYAN BALDEMOR

By Luisa Maria Jacinta C. Jocson, Reporter

THE INTERNATIONAL Monetary Fund (IMF) raised its gross domestic product (GDP) growth forecast for the Philippines for this year and 2025. 

In its latest World Economic Outlook (WEO), the IMF upwardly revised its Philippine growth forecast to 6.2% for this year from 6% previously. This is within the government’s revised 6-7% growth target.

“Real GDP growth for 2024 was revised slightly to 6.2% from the January WEO forecast of 6%, reflecting carryover from a better-than-expected outturn in the last quarter of 2023,” IMF Representative to the Philippines Ragnar Gudmundsson said in an e-mail.

The Philippine economy grew by 5.5% in both the fourth quarter and full-year 2023.

Based on IMF projections for emerging and developing Asia, the Philippines is expected to post the second-fastest GDP growth this year, just behind India (6.8%). It is ahead of Vietnam (5.8%), Indonesia (5%), China (4.6%), Malaysia (4.4%) and Thailand (2.7%).

“Growth in emerging and developing Asia is expected to fall from an estimated 5.6% in 2023 to 5.2% in 2024 and 4.9% in 2025, a slight upward revision compared with the January 2024 WEO Update,” according to the report.

The multilateral lender sees five Association of Southeast Asian Nations member economies (ASEAN-5) to expand by an average of 4.5% this year, slightly lower than the 4.7% forecast it gave previously. 

The ASEAN-5, composed of the Philippines, Singapore, Malaysia, Vietnam, and Indonesia, is forecast to grow by 4.6% next year, slightly higher than its 4.4% projection in January.

For 2025, the IMF sees Philippine GDP growing by 6.2%, a tad higher than its previous forecast of 6.1% but below the government’s 6.5-7.5% target.

Mr. Gudmundsson said the forecast for 2025 is supported by expectations of an “acceleration in domestic demand and investment.”

Next year, the Philippines has the second-fastest projected growth in the region, just behind India and Vietnam (both at 6.5%).

“Over the medium term, structural reforms to close infrastructure and education gaps, attract greater foreign direct investments (FDIs), and harness benefits from the digital economy should help realize a (Philippine) growth potential of about 6-6.5%,” Mr. Gudmundsson said.

“These reforms should be complemented by strengthening existing social protection schemes and addressing climate change through a more integrated strategy that includes a carbon pricing scheme,” he added.

Economic managers are targeting 6.5-8% growth from 2026 to 2028.

Meanwhile, the IMF sees global growth settling at 3.2% for both 2024 and 2025. It raised its 2024 forecast by 0.1 percentage point but kept its 2025 projection unchanged from January.

“Nevertheless, the projection for global growth in 2024 and 2025 is below the historical (2000-2019) annual average of 3.8%, reflecting restrictive monetary policies and withdrawal of fiscal support, as well as low underlying productivity growth,” the IMF said.

It said that emerging market and developing economies are expected to “experience stable growth through 2024 and 2025, with regional differences.”

INFLATION
Meanwhile, the IMF sees inflation averaging 3.6% this year, lower than the 3.7% forecast in its January update.

“Inflation is projected to gradually approach the target of 3% in the second half of 2024, though risks remain tilted to the upside as a surge in food or fuel prices could lead to increased pressure for greater wage hikes and persistence in core inflation,” Mr. Gudmundsson said.

Inflation accelerated for a second straight month to 3.7% in March, mainly due to high food and transport costs. The BSP sees inflation averaging 3.8% this year.

BSP Governor Eli M. Remolona, Jr. has said that upside risks to inflation have worsened, prompting the central bank to be “somewhat more hawkish than before.”

Inflation could temporarily accelerate to above the 2-4% target over the next two quarters, according to the BSP.

The IMF also sees inflation averaging 3% in 2025, same as its previous estimate.

The BSP expects inflation to average 3.2% next year.

Mr. Gudmundsson said that the BSP should “maintain a sufficiently restrictive monetary policy stance until inflation fully returns to target.”

“Scope for a gradual reduction in the policy rate could emerge later this year provided that inflation expectations are firmly anchored and upside risks to the inflation outlook do not materialize,” he added.

At its latest meeting in April, the Philippine central bank left its benchmark rate unchanged at a near 17-year high 6.5% for a fourth straight meeting.

From May 2022 to October 2023, the Monetary Board raised borrowing costs by 450 basis points (bps).

Mr. Remolona told Bloomberg on Monday that if inflation continues to worsen, there is a chance that there will be no rate cuts this year.

The central bank will likely begin policy easing by the first quarter of 2025, he added.

Remolona says rate cut more likely in 2025 on inflation risks

Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. — BLOOMBERG

THE WINDOW for the Philippine central bank to start reducing the key rate in the second half of 2024 is narrowing as the risk that inflation may breach its target for a third straight year rises, according to Philippine central bank Governor Eli M. Remolona, Jr.

“The upside risks have become worse than before, and that’s the reason we’ve stayed hawkish,” Mr. Remolona said in an interview on Monday at the Bangko Sentral ng Pilipinas (BSP) office in Manila. “The policy rate is on the tight side. So, by being hawkish, what we mean is we will stay where we are,” he said.

Monetary easing will more likely begin in the first quarter of 2025, and the cuts won’t be “huge” — just enough to bring the benchmark closer to the neutral rate of about 6% from the current 6.5%, the governor said.

As things stand, the odds are “over 56%” that inflation may breach the BSP’s 2%-4% target again this year and “that’s a reason to be hawkish,” Mr. Remolona said. “That has to change significantly before we decide to cut,” he said.

Policy makers across the world, including in the Philippines, have signaled they’re not in a rush to lower borrowing costs and wanted to see more evidence of firmly decelerating price pressures before pivoting to easing. Since taking over in July 2023, the BSP governor, who has worked at the Bank for International Settlements and the Federal Reserve of New York, has adopted a broadly hawkish stance.

Price risks in the Philippines have lingered even after the BSP’s most-aggressive tightening campaign in two decades that has taken the key rate to a 17-year high. Mr. Remolona presided over the last increase in October, done out of the cycle, to rein in inflation. It helped that economic growth remained among the fastest in the region.

Rice inflation in the Philippines hit a fresh 15-year high in March while the peso has touched a seven-month low, weakening along with other emerging currencies as the Middle East conflict intensifies. Mr. Remolona said he’s comfortable with the peso’s current level and that the BSP has hardly been intervening in the foreign currency market. The peso fell for a fourth day.

An “extraordinarily weak” economy would increase the need for a rate cut, the governor said, but he pointed out that the BSP’s latest growth estimate for 2024 was better than the 4.5% forecast he gave last year, without disclosing details.

The Philippines is seen to expand by 5.8% this year, according to a median estimate in a Bloomberg survey of economists, after rising by 5.5% in 2023.

Philippine inflation, meanwhile, quickened for a second month to 3.7% in March with price pressures seen persisting until next quarter, longer than the BSP previously expected. The peso fell as much as 0.3% against the dollar on Tuesday to P56.99, the lowest since Sept. 6, 2023.

“Things have gotten worse in terms of inflation. So yes, if the trend continues, it won’t happen this year,” the governor said of the rate cut.

An escalation in the Israel-Iran conflict that could impact global oil supplies is a potential risk to the Philippine economy, Mr. Remolona said. The Southeast Asian nation imports nearly all of its fuel needs and is among the world’s top buyers of rice.

“The broadly hawkish stance is prudent given upside risks to inflation and perhaps the BSP is seeing growth will remain intact,” said Robert Dan J. Roces, chief economist at Security Bank Corp. in Manila. “Add to these recent bets that the Fed won’t rush to cut rates. This should be supportive of the peso.”

Below are Mr. Remolona’s comments on other matters:

On cutting the reserve requirement:

“If we’re going to lower it, we don’t want to do it while we’re hawkish. We definitely want to lower it significantly. One question is by how much and the other questions is when.”

On push for capital market reforms:

“It’s very important for our transmission mechanism. Right now, the policy rate is an overnight rate. There are no significant economic decisions that are being made based on an overnight rate. You need one year, a mortgage is five years. So that’s how a deeper capital market helps the transmission mechanism.”

On shift to market-determined overnight reverse repurchase facility:

“It took a little bit of adjustments, but we’re now where we want to be. When we do the auctions, on some days it’s above the policy rate, on some days it’s below. We want the policy rate to be in the middle. When we started doing it, it was always below the policy rate, which means there’s just too much liquidity in the market. Now it’s sometimes above, sometimes below, that’s where we want it to be.” — Bloomberg

Red tape poses challenge for foreign investors, says German ambassador

A German national flag flies atop the illuminated Reichstag building in Berlin, Germany. — REUTERS

By Justine Irish D. Tabile, Reporter

BUREAUCRATIC RED TAPE and foreign ownership restrictions remain some of the challenges facing foreign investors in the Philippines, Germany’s ambassador to the Philippine said on Tuesday.

German Ambassador to the Philippines Andreas Michael Pfaffernoschke told reporters on Tuesday that foreign businesses still face hurdles in terms of securing permits, especially at the local level.

“There are many permits you need in the Philippines; there is sometimes corruption involved, and there are different layers of government units that are involved in getting permits,” he said.

“So, making these things easier, streamlining the processes, and reducing red tape are definitely among the key concerns.”

Mr. Pfaffernoschke said issues involving red tape are not just a concern of German businesses, but of the broader business community.

“When it comes to red tape… it’s the number of permits you need, it’s the time it takes to get a permit… I think it’s not unique to German businesses, you will hear this from the whole business community in the Philippines,” he said. 

David Klebbs, economic counselor of the German Embassy, said that the typical obstacles faced by German businesses doing business in the Philippines involve bureaucracy.

“It’s sometimes not easy to get the right permissions; there are different levels, local government units, and (other) different things,” Mr. Klebbs said.

While some German businesses may say that doing business in the Philippines is easier, he noted most still say that it is difficult.

“Most businesses say (that) they feel it’s difficult. They feel it’s not so easy to understand what’s happening. So it really helps to have certain things. What usually helps is a one-stop shop, which is also being done already by the Filipino government,” he said.

Mr. Klebbs said the government should try to make the permits processing “as easy and transparent as possible.”

The Philippines may look into lifting the foreign restrictions on ownership and procurement, which may lead help attract more investments, he said.

“If you look, for example, at the Procurement Law, it is one of the magical tools that the country has to be open to foreign investors … In the end, you can get many offers if you do it well, and you can choose the best provider,” Mr. Klebbs said.

“There are companies that started on the procurement contracts in the Philippines and were not in the Philippines before, and now they’re very successful,” he added.

He said that the procurement law should be more open and procurement procedures should be less complicated and time-consuming.

“Same as foreign ownership. It is really difficult for foreign companies to do business if they’re not able to own their businesses,” he said. “Also with the ownership of land. Sometimes you need land to do business. If you can’t own the land, you can’t do the business because it’s too risky.”

“But we think that it is better to allow it. But I do understand this notion that certain things should stay for the people, but it’s a balanced approach,” he added.

The House of Representatives has already approved Resolution of Both Houses (RBH) No. 7, which seeks to amend the restrictive economic provisions of the Constitution.

Under Article 12 of the Constitution, foreign ownership of land and businesses is only limited to 40%.

Germany was the top source of foreign-approved investments in the Philippines last year, accounting for P393.99 billion, and among the leading sources of foreign direct investments, contributing $149.89 million.

Data from the Philippine Statistics Authority showed that total trade between the Philippines and Germany was valued at $4.65 billion in 2023.

More yellow alerts expected in Luzon grid by mid-May

The Luzon grid was placed on red and yellow alerts on Tuesday. — PHILIPPINE STAR/RYAN BALDEMOR

By Sheldeen Joy Talavera and Ashley Erika O. Jose, Reporters

THE LUZON and Visayas grids were placed on red and yellow alerts on Tuesday after several power plants went on forced outage.

The Institute for Climate and Sustainable Cities (ICSC) on Tuesday said the Luzon power grid will likely experience a shortfall in power supply until May as the majority of hydroelectric power plants are expected to run on derated capacity.

“We are [seeing] the threat of power supply deficiency especially since power supply conditions are exacerbated which is expected to impact the hydropower capacity,” Jephraim C. Manansala, chief data scientist at the Institute for Climate and Sustainable Cities (ICSC), said at a briefing on Tuesday.

The Luzon power grid is projected to be the most affected by the looming power supply deficiency as the majority of hydroelectric power plants supplying the grid will be running on low capacity, the think tank said.

“The threat of power supply deficiency during the dry season is looming, where the major concern is the higher-than-usual temperatures associated with the El Niño weather phenomenon, which are expected to impact hydropower capacity across the country,” the Manila-based climate and energy policy group said.

ICSC said that around 1,435 megawatts (MW) or 70% of the 2,050-MW hydroelectric capacity will be unavailable in the Luzon grid during the dry season.

Power demand typically surges during the hot summer months. Mr. Manansala said Luzon is expected to experience the tightest power supply between May 16 and May 30, adding that yellow alerts are expected from April 29 to May 26.

Peak demand is expected in May, reaching 13,917 MW in Luzon, 2,834 MW in Visayas, and 2,584 MW in Mindanao, ICSC said.

“El Niño reduces the available capacity from hydroelectric power plants. All baseload power plants need to be compliant with the grid operating and maintenance program and any unplanned outages may deplete operating reserves levels,” Mr. Manansala said.

The El Niño weather phenomenon has started weakening but will still persist until May, the state weather bureau said, adding that its effects may last until August.

ICSC said there will be minimal impact on the Visayas grid as the region has limited hydroelectric capacity, while the Mindanao grid is expected to maintain normal reserves during the period.

The sufficient power reserves in Visayas and Mindanao is also due to the high-voltage direct current (HVDC) imports from Mindanao with the expanded operations of Cebu-Negros-Panay transmission and the Mindanao-Visayas Interconnection Project (MVIP). The MVIP allows Mindanao to export up to 450 MW to Visayas allowing the region to have power supply security.

The country’s recurring power supply problems stem from the centralized and baseload-reliant plants, Pedro H. Maniego, Jr., senior policy advisor of ICSC, said.

Baseload power plants, like coal-fired plants, are those that can continuously generate power to meet the power demand.

Alberto R. Dalusung III, energy transition advisor at the ICSC, said the government must focus on the timely delivery of the committed power plants and the improvement of the grid to accommodate additional power capacity.

“There has to be expansion of the transmission system. So, we can definitely absorb more renewables and more [technologies] like biomass, geothermal, and this imposes less requirements on the grid,” Mr. Dalusung said.

YELLOW, RED ALERTS
Meanwhile, the National Grid Corp. of the Philippines (NGCP) said that a red alert was placed over Luzon between 2-4 p.m. and 6-9 p.m. on Tuesday.

A yellow alert was placed over Luzon from 1-2 p.m.; 4-6 p.m.; and 9-11 p.m.

Yellow alerts are issued when the supply available to the grid falls below a designated safety threshold. If the supply-demand balance deteriorates further, a red alert is declared.

The NGCP said that the peak demand was at 13,024 MW, which nearly outpaced the available capacity of 13,537 MW.

“Nineteen power plants are on forced outage, while three others are running on derated capacities, for a total of 2,117.3 MW unavailable to the grid,” the grid operator said.

Based on the data from the NGCP, power plants that went on forced outages in Luzon include Pagbilao units 1 and 2, Masinloc 1, Sta. Rita 40, Southwest Luzon Power Generation Corp. 2, Bakun 1 and 2, Ambuklao 1 and 2, Binga 1 and 4, Bineng, BT2020, the generating unit of the National Irrigation Administration, VS Gripal Power Corp., Maris 1 and 2, NMH, and Irisan.

As of 5:09 p.m., the NGCP extended the red alert status in Luzon to 11 p.m. due to the outage of two additional plants: Kalayaan 1 and 2 at 180 MW each.

Sought for comment, First Gen Corp. Vice-President for Corporate Communications Ramon A. Carandang said that the Sta. Rita plant is targeted to sync with the grid on Wednesday morning.

“The protection system activated Sunday due to a minor issue, so they had to repair it. They’re supposed to be online, they’re supposed to be functioning again, Sta. Rita, by (Tuesday night),” Mr. Carandang said on the sidelines of an event.

A yellow alert was also declared over the Visayas grid between 2-4 p.m. and 6-9 p.m. During the period, the available capacity was at 2,742 MW while the peak demand was 2,440 MW.

The NGCP said that 12 power plants are on forced outage, while five are at limited capacity, bringing the unavailable capacity to 676.5 MW.

A red alert in Visayas was later raised between 5-9 p.m. due to an outage of an additional power plant, KEPC SPC Power Corp. 1 at 103 MW.

Energy Regulatory Commission (ERC) Chairperson Monalisa C. Dimalanta said that they will investigate the power outages that took place.

“There are those plants that are on planned outages that have extended their period of repair. So those are the complications that we really cannot anticipate,” Ms. Dimalanta told BusinessWorld on the sidelines of an event.

The NGCP said as of 4:16 p.m. that MLD was implemented in parts of Baguio City, Benguet, Ilocos Sur, Nueva Ecija, and Aurora, to protect the integrity of the power system.

MORE POWER PROJECTS
In a separate statement, the NGCP has called for more power generation projects to avoid outages in the Visayas amid the full energization of the Cebu-Negros-Panay 230-kilovolt Backbone Project Stage 3 (CNP3).

“The project’s completion was touted by some parties as the primary solution to the recent spate of power outages in Negros and Panay. But CNP3 is not the sole or primary solution to the woes of Panay consumers,” the grid operator said.

The NGCP said that the development of sufficient power generation supported by reliable transmission is the key “for optimized energy development.”

“While the line will help improve the delivery of power, more baseload plants in Negros and more in-island generation in Panay are needed to prevent the occurrence of power outages,” the NGCP said.

DoubleDragon says net income soars 23.3% to P15.93 billion

SIA and Caktiong-led property developer DoubleDragon Corp. (DD) saw a 23.3% increase in its 2023 net income to P15.93 billion, attributed to higher revenue.

The company’s revenue improved by 75% to P24.74 billion in 2023 from P14.13 billion in 2022, DD said in a regulatory filing on Tuesday.

As of end-December, DD’s total assets increased by 15.6% to P181.24 billion, while total equity rose by 15.9% to P94.57 billion.

DD Chairman Edgar “Injap” J. Sia II said the company’s assets are set to increase with the upcoming completion of seven additional buildings that will be added to its portfolio this year.

He added that the company’s balance sheet will also improve once DD’s hotel unit, Hotel101 Global Pte. Ltd., completes its listing on the Nasdaq Stock Exchange.

 “We believe the Hotel101 novel and unique concept and business model that has never been done yet in any other country, and is ready for export to other parts of the world,” Mr. Sia said.

Hotel101 is set to list on Nasdaq with a valuation of over $2.3 billion (P130 billion) from a merger deal with special purpose acquisition company JVSPAC Acquisition Corp. in the United States.

The listing is expected to be done in the third quarter. Hotel101 will be listed with the ticker “HBNB.”

According to Mr. Sia, DD already completed 1.3 million square meters of recurring revenue from a string of provincial community malls, warehouse complexes, office buildings, and hotels.

“We expect to all become mature assets generating optimum levels of revenues and income to DD by 2025,” Mr. Sia said.

Hotel101 is targeting to have one million rooms across more than 100 countries.

It aims to have presence in 25 countries by 2026. These include Philippines, Japan, Spain, United States, United Kingdom, the United Arab Emirates, India, China, Thailand, Malaysia, Vietnam, Indonesia, Singapore, Cambodia, Bangladesh, Mexico, South Korea, Australia, Canada, Switzerland, Turkey, Italy, Germany, France, and Saudi Arabia.

Hotel101 recently started the development of a 680-room hotel in Madrid, Spain. It is also building a 482-room hotel in Hokkaido, Japan.

The company also previously secured a 3,647-square meter commercial lot in Los Angeles, California, for its first hotel in the US.

DD shares retreated by 3.19% or 26 centavos to P7.90 apiece on Tuesday. — Revin Mikhael D. Ochave

Villar-led Vista Land says profit climbs 39% to P10.3 billion

VILLAR-LED property developer Vista Land & Lifescapes, Inc. saw a 39% increase in its net income to P10.3 billion in 2023, led by higher revenues and new project launches.

Vista Land’s consolidated revenue increased by 18% to P35.2 billion, the company said in a statement on Tuesday.

Real estate revenue grew by 19% to P15.2 billion, while rental income totaled P16 billion. The company’s earnings before interest, taxes, depreciation, and amortization rose by 21% to P20.6 billion.

Vista Land launched 34 projects valued at P50.7 billion as of end-2023.

“Our 2023 results showed our optimism in the real estate industry. These launches were key to our reservation sales reaching about P72 billion. We are on our way with our maximization of resources strategy as the majority of our launches were vertical developments across the country and we will continue to do so in 2024,” Vista Land Chairman Manuel B. Villar, Jr. said.

 Vista Land President and Chief Executive Officer Manuel Paolo A. Villar said the company aims to sustain the development of its various projects.

“We will continue to pursue our residential segment now with the launch of more vertical, as well as higher-end products. This has been part of our overall strategy of asset optimization. We also continued with our master planned developments through Vista Estates, now at 26, across the country,” Mr. Villar said.

“Our leasing business on the other hand, sustained its growth as we ended 2023 with a total gross floor area of 1.6 million square meters or over 100 investment properties consisting of 42 malls, 56 commercial buildings, and 7 office buildings,” he added.

Vista Land has P342.4 billion worth of total assets as of end-2023, up by 6% from end-2022, while equity reached P132.9 billion.

 The company spent P27.1 billion on capital expenditures last year, with the majority allocated to construction and land development.

It added that land acquisition remains muted as the company plans to utilize its existing land bank.

 The property developer hopes to continue to maximize its land assets through Vista Estate developments nationwide and increased involvement in upscale projects such as its Brittany and Crown Asia initiatives.

It also plans to prioritize mixed-use developments that combine vertical and commercial elements in its ongoing and planned projects.

Vista Land’s business units include Camella Homes, Communities Philippines, Crown Asia, Brittany, Vista Residences, and Vista malls.

 On Tuesday, Vista Land shares dropped by 0.65% or one centavo to P1.53 apiece. — Revin Mikhael D. Ochave

Alliance Global’s income reaches P19.6 billion

ALLIANCEGLOBALINC.COM

TAN-LED holding company Alliance Global Group, Inc. (AGI) said it saw a 21% increase in its attributable net profit to P19.6 billion last year, driven by better performances across its businesses.

 Consolidated revenues reached “an unprecedented level” of P211.2 billion in 2023, up by 15% from P183.6 billion in 2022, AGI said in a stock exchange disclosure on Tuesday.

“2023 was a historic year for the group as it delivered excellent performance across all of its businesses, led by its real estate, tourism, and consumer segments,” AGI Chief Executive Officer Kevin L. Tan said.

“This was achieved even amid heightened competition in the domestic and global market, various macro challenges in some key markets, rising cost pressures and higher interest rates,” he added.

AGI’s real estate arm Megaworld Corp. saw a 29% increase in its attributable net income to P17.3 billion as revenues jumped by 17% to P69.7 billion.

The revenue growth was driven by the “16% year-on-year growth in real estate sales, the sharp recovery in the revenues of Megaworld Lifestyle Malls by 54% and Megaworld Hotels by 46%, in addition to the 3% rise in rentals of Megaworld Premier Offices,” AGI said.

Newport World Resorts owner and operator Travellers International Hotel Group, Inc. recorded an 89% jump in net income to P2 billion, while net revenues increased by 19% to P31.9 billion.

 “This was driven by the resurgence in tourism and meetings, incentives, conferences, and exhibition activities, which allowed for a stellar 40% year-on-year increase in hotel and other revenues to P7.4 billion, while its gross gaming revenues went up by 7% to a new high of P34.2 billion,” AGI said.

Brandy and whiskey manufacturer Emperador, Inc. posted a 10.5% decline in its net income to P8.64 billion due to the weaker performance of its brandy business.

The company saw a 5% increase in its consolidated revenue to P65.6 billion.

“This was driven by the sustained improvement in international whisky sales as Whyte & Mackay’s single malt brands The Dalmore, Fettercairn, Jura, and Tamnavulin continue to make significant inroads in major markets like Asia, North America, and travel retail,” AGI said.

Golden Arches Development Corp., the master franchise holder of fast food giant McDonald’s in the Phillippines, logged a 39% growth in attributable profit to P2.5 billion in 2023 from P1.8 billion a year ago.

 The company’s sales revenue rose by 24% to P42.8 billion in 2023 from P34.4 billion in 2022. It has 740 stores nationwide as of end-2023.

 “For 2024, we look forward to the much-anticipated policy rate cuts as inflation begins to ease, improving the economic and business environment with the resurgence in consumer spending, as well as demand for housing, tourism and staycation activities. Armed with our superior product offerings, AGI is well-positioned to take advantage of these enormous opportunities as they unfold,” Mr. Tan said.

On Tuesday, AGI shares dropped by 0.42% or four centavos to P9.50 apiece. Megaworld stocks fell by 2.25% or four centavos to P1.74 per share. Emperador shares rose by 0.11% or two centavos to P18.18 each. — Revin Mikhael D. Ochave

GSIS acquires 8.18% stake in Robinsons Land’s REIT

GSIS FACEBOOK PAGE

THE government Service Insurance System (GSIS) has acquired an 8.18% stake in the real estate investment trust (REIT) of Gokongwei-led Robinsons Land Corp. (RLC) as the government agency bolsters its investment portfolio.

GSIS now owns 877.43 million common shares of RL Commercial REIT, Inc. (RCR), equivalent to an 8.18% stake, the listed REIT said in a stock exchange disclosure on Tuesday.

The deal has an estimated value of over P4.3 billion using RCR’s stock price of P4.95 apiece on Tuesday.

 “Jose Arnulfo A. Veloso, GSIS president and general manager or his representative, has the sole power to vote/direct the voting or dispose/direct the disposition of said shares,” RCR said.

“For the past 60 days, GSIS acquired a total of 790.22 million common shares of RCR,” it added.

The announcement came as RLC recently sold 1.73 billion common shares of RCR to “high-quality long-only institutional investors” at P4.92 apiece worth P8.5 billion. The move increased RCR’s public float to 49.95% from the previous 33.86%.

According to RLC, the deal allows RCR to obtain accretive assets from the property developer’s pipeline of investment properties.

“Investing in REITs would benefit GSIS by providing them a recurring source of dividend income,” COL Financial Group, Inc. Chief Equity Strategist April Lynn Lee-Tan said in a Viber message.

China Bank Capital Corp. Managing Director Juan Paolo E. Colet said that the move by GSIS is a “good long-term investment in a top quality REIT.” 

 “Based on its acquisition price, GSIS will enjoy a high dividend yield of around 8% with the potential for growth as more yield-accretive assets are infused into RCR,” Mr. Colet said.

“They are number two in terms of market capitalization,” he added.

As of Tuesday, RCR has a market capitalization of P53.1 billion at P4.95 per share. The company has 10.73 billion outstanding shares.

Ayala-led AREIT, Inc. has the highest market capitalization among REITs at P78.05 billion.

AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message that the entry of GSIS would bode well for the company’s stock price.

“RCR has been one of the underperformers in the REIT space, with -8.8% total returns (capital gains plus dividends) since listing. The entry of GSIS could provide the much-needed vote of confidence in the stock that could turn the price action around,” Mr. Garcia said.

“Looking at the broader picture, this recent spate of deals in the REIT segment could be indicative that the worst is over for dividend-yielding securities in particular and for equities in general. While the Bangko Sentral ng Pilipinas is still maintaining its hawkish tone, it seems that GSIS is already positioning for the advent of easier monetary policy and lower risk-free returns,” he added. — Revin Mikhael D. Ochave

GMA Network’s profit down 42% as ad revenue falls

GMA Network, Inc. saw a decrease in its attributable net income to P3.16 billion last year, mainly due to lower advertising revenue.

The company’s net income attributable to parent fell by 42.1% to P3.16 billion last year from P5.46 billion in 2022, the company’s financial statement showed.

The network’s revenues stood at P18.64 billion, 13.5% lower than the P21.56 billion recorded previously.

Of its top line, the network’s advertising revenue declined to P17.18 billion, marking a 15.1% decrease from the P20.23 billion in 2022; sales of services revenue went up to P1.14 billion from P992.77 million a year earlier, while sales of goods contracted by 8.6% to P311.62 million from P340.87 million.

“GMA Network and subsidiaries made a last-ditch effort to close the gap in the top line for the year 2023, with a stronger performance in the second half of the year, which partly mitigated the slow start during the first semester,” the company said.

“However, the absence of a little over P3-billion worth of political advocacies and advertisements made a huge dent on the company’s top line,” it added.

It noted that online and digital licensing managed to mitigate the lack of election-related placements. “These revenue sources saw considerable improvements in 2023, which were crucial in addressing the challenges faced by the traditional advertising segment of the company,” the company said.

The company’s total expenses declined to P14.59 billion, 1.2% lower than the P14.42 billion in 2022.

At the local bourse on Tuesday, shares in the company fell by four centavos or 0.45% to end at P8.85 apiece. — Ashley Erika O. Jose

1...1,8401,8411,842...12,701Page 1,841 of 12,701
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube