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Safe sex: the latest casualty of Lebanon’s economic meltdown

STOCK PHOTO | Image by Gabriela Sanda from Pixabay

Lina, a 27-year-old Lebanese woman, started skipping her contraceptive pills a year ago as their price soared beyond her reach. Today, she is five months into an unplanned pregnancy and anxious about the future.

As Lebanon’s economic crisis makes birth control, condoms and screening tests too expensive for many young adults, doctors have warned about a wave of unwanted pregnancies, sexually transmitted infections (STIs) and possibly unsafe abortions.

“I don’t have a career, I don’t have anything stable, I don’t have a home where (the baby) can be safe,” said Lina, who is married and asked to use a pseudonym to protect her identity.

Lebanon’s economic meltdown has plunged more than 82% of the population into poverty, with the lira currency’s sharp devaluation hiking the cost of imported birth control supplies – from contraceptive pills to condoms.

Before the lira crashed in late 2019, a year’s supply of birth control pills cost about 21,000 lira. Today, it costs nearly 10-times as much.

A packet of six condoms now costs at least 300,000 lira – nearly half the monthly minimum wage.

This has effectively made contraceptives unaffordable for many young adults – with possibly life-threatening consequences, said Faysal El Kak, an obstetrician-gynecologist at the American University of Beirut.

“The potential rise in unintended pregnancies could result in further economic consequences, increase in maternal morbidity and mortality, and of course a rise in unsafe abortions,” El Kak told the Thomson Reuters Foundation.

Abortion is illegal in Lebanon – even in the case of rape or incest – and anyone who facilitates, promotes or has an abortion could face a fine and imprisonment.

The ban – and conservative attitudes about having a child outside marriage – mean women with unwanted pregnancies often seek out illegal abortions, said El Kak, estimating that unsafe terminations cause 25% of maternal mortality.

 

HUNGER FIRST

Nearly 12 million women in poorer countries lost access to contraception in the COVID-19 pandemic, leading to 1.4 million unplanned pregnancies, the United Nations said last year.

In Lebanon, the problem has been compounded by the country’s financial woes, with refugees and rural residents in particular facing a dearth of adequate and approachable sexual health services, El Kak said.

Even people seeking screening for STIs including HIV are struggling to afford the cost of an STI test, which can cost up to 200,000 Lebanese Lira in private clinics.

STI services have long been neglected and underfunded in Lebanon, leading to a lack of screening, shortages of trained personnel and laboratory capacity and scant pharmaceutical supplies for follow-up treatment, El Kak said.

There were 2,885 people diagnosed with HIV in Lebanon as of November 2021 of whom only 1,941 people were receiving antiretroviral treatment – far below the global average, according to estimates given by the National AIDS Program.

Stigma, discrimination and a ban on gay sex stop many LGBTQ+ Lebanese from getting tested or seeking treatment for HIV and other STIs, El Kak said.

Tough laws on sex work and drug use are also cited by health professionals and HIV campaigners as barriers to the delivery of screening and treatment services among high-risk groups.

Many local initiatives, often funded with charity donations, have been providing free STI tests in a bid to plug the gap.

According to data collected by SIDC, a nonprofit that provides the free testing, 70% of people who tested in their labs in 2021 were having unprotected sex.

But just as demand for affordable sexual health services grows, the crisis is depleting nonprofits’ funds as donors redirect their support to programmes focused on providing food and shelter, said Nadia Badran, SIDC’s president.

“(They) prioritise funding people who are dying from hunger, rather than from STIs,” Badran said. – Reuters

ANALYSIS: After sanctions barrage, Russia’s emerging market allies explore workarounds

A RUSSIAN FLAG flies with the Spasskaya Tower of the Kremlin in the background in Moscow, Russia, Feb. 27, 2019. — REUTERS

As western governments ratchet up sanctions against Russia over its invasion of Ukraine, Moscow’s emerging markets allies are exploring channels for trade and financing to continue.

The other members of the erstwhile BRICs group – Brazil, India and China – are treading cautiously for fear of tripping on the sanctions, but the beginnings of a parallel financial system centred on Beijing are becoming detectable.

The United States and Europe have banished big Russian banks from the main global payments system SWIFT and announced other measures to limit Moscow’s use of a $640 billion war chest.

So the willingness of the emerging market giants to sustain business relations with Russia highlights a deep rift over Europe’s biggest crisis since the World War II, and threatens to chip away the dominance of the U.S. dollar in global trade.

Chinese businesses and banks are now scrambling for ways to limit the impact of sanctions on their relations with Russia, with settlement of transactions in yuan seen rising at the expense of the dollar. The western curbs, which aim to cut Russia out of the global financial system, could also deepen commercial links between Moscow and Beijing.

In India, as concerns mount over sustaining supplies of Russian fertilizer, government and banking sources say there is a plan to get Russian banks and companies to open rupee accounts with a few state-run banks for trade settlement as part of a barter system.

Brazil’s President Jair Bolsonaro said his country will remain neutral in the conflict.

Deng Kaiyun, who heads Zhejiang’s chamber of commerce that represents Chinese private businesses that trade with Russia, said doing transactions without SWIFT was not a big issue, as the two countries both started de-dollarisation five years ago.

“Yuan-rouble settlement has become a normal business at major banks nowadays … We business people are already accustomed to that,” Deng said, adding yuan is increasingly popular with Russians.

 

SWIFT

The sanctions are prodding Russian and Chinese companies to open accounts at Chinese banks that have subsidiaries in Russia, said a Moscow-based lawyer who represents Chinese businesses.

“SWIFT is not the only payment system. If you block this channel, business people need to find alternatives,” said the lawyer, who declined to be named due to sensitivity of the topic.

A source at a Chinese state bank who declined to be identified says “exporters are now in favour of using yuan to settle their payments” with Russia. Some of those trades were settled in euros or dollars until last week.

A source at another state lender said that, given a lack of details in the Western sanctions, the bank is closely monitoring the situation while encouraging clients to use yuan in trade settlements with Russia.

Yuan settlements already accounted for 28% of Chinese exports to Russia in the first half of 2021, compared with just 2% in 2013, as both China and Russia step up efforts to reduce reliance on the dollar, while developing their own respective, cross-border payment systems.

The current crisis could accelerate the trend.

Dang Congyu, analyst at Founder Securities writes the SWIFT sanctions against Russia are “a milestone event that will accelerate the process of de-dollarisation.”

“Although it’s hard to replace SWIFT in the short term, this incident is very beneficial to yuan’s globalisation over the long run.”

 

DE-DOLLARIZATION

Efforts on de-dollarization are not limited to trade.

Investment firm Caderus Capital said it has been working to promote cross-border investment between Russia and China.

Managing director Andrei Akopian also hailed Russia central bank’s move to increase investment in yuan assets as “the best way to increase the popularity of the Chinese RMB among Russian investors.”

Yuan accounted for 13.1% of the Russian central bank’s foreign currency reserves in June 2021, compared with just 0.1% in June 2017. Dollar holdings dropped to 16.4%, from 46.3%.

“If we talk about trade and investment, it makes a lot of sense for both countries not to trade in the in U.S. dollars, because then you have double conversion, in addition to other difficulties recently,” Akopian said.

But the pain for many Chinese businesses is immediate, with a volatile rouble and trade contracts not being honoured.

“Everyone is focused on maintaining or cutting existing business right now. No one is talking about new business. That’s what I’m hearing from all quarters, including Chinese clients,” said a lawyer who declined to be named.

Han-Shen Lin, senior advisor The Asia Group and an ex-banker, also cautions that Chinese banks could face tougher scrutiny in the face of western sanctions against Russia.

“All the Chinese banks know that the U.S. dollar clearing global banks will be asking Chinese banks about involvement in sanctions-related counterparts transactions,” Lin said.

“What will be of interest is how Chinese banks can segregate the sanctioned transactions versus non-sanctioned”, such as energy-related businesses. – Reuters

AllDay introduces Philippines’ first supermarket ‘smart carts’

AllDay Supermarket rolls out smart carts in its stores, a nod to its continuous effort to bring global best practices to the local supermarket.

AllDay Supermarket, the country’s fastest growing supermarket operator, continues its tradition of innovation-first customer experiences by rolling out the Philippines’ first “smart carts” in its stores, a nod to its continuous effort to bring global best practices to the local supermarket experience.

AllDay’s smart carts are the latest addition to the chain’s growing collection of first-to-market innovations, including its Personal Shopper Service, and AllDay’s self-checkout counters—initiatives indicative of the market’s growing preference for an upgraded experience informed by emerging trends from all over the world.

AllDay’s smart carts make shopping efficient.

“We’re excited to bring to our customers yet another innovation to make in-person grocery shopping even more intuitive and enjoyable,” says Camille Villar, AllDay Supermarket’s Vice Chairman. “Our smart carts are a novel experience, and we are sure it will be an exciting experience for first-time users. This puts even more convenience and information about what they are buying in real time, right at their fingertips. More importantly, introducing these smart carts helps raise the bar for the local supermarket landscape, driving home our point that Filipino consumers now expect more in terms of experiential shopping, and we are of course happy to deliver.”

A simple, efficient experience

AllDay’s smart carts are easy to use, and allows for even more customer autonomy in-store.

Customers need to simply place their desired items in the smart cart, which automatically scans the selected items information, immediately reflecting prices and other important information on the cart’s user interface.

AllDay Supermarket’s smart carts are easy to use, and allows for even more customer autonomy in-store.

As a customer continues his or her shopping trip, a running total is generated in real-time, allowing for them to monitor and compare against their budget, or their shopping list for that particular trip.

When a customer is ready to check out, the smart cart will automatically generate a QR code for their total purchase, which can be scanned at either AllDay’s self-check out counters or simply handed over to AllDay’s trained cashiers for payment and check out.

AllDay Supermarket’s smart cart is the first in the Philippines.

Always innovating

Innovation, whether in-store or online, will always remain the beating heart of the AllDay experience. The rollout of AllDay smart carts in the AllDay flagship store at Evia Lifestyle Center is a direct result of the constant evaluation of global trends and practices that the chain believes to be most salient to the local supermarket landscape—a practice that saw the introduction of the country’s first self-checkout kiosks and the pioneering Personal Shopper Service, initiatives that have earned regional acclaim from groups such as Euromonitor International.

AllDay also continues to maintain and operate the best-in-class e-commerce platform www.allday.com.ph, which also aims to introduce new customer-facing improvements in 2022.

“Our focus continues to be directed towards bringing transformation to the local supermarket landscape,” says Villar. “The importance of continuous improvement of our services and experiences remains a top business priority for us, right alongside expanding our store network and bringing our established elevated in-store customer experience to even more communities all over the country.”

AllDay Supermarket

With the recent opening of new locations in the Villar group’s East Lake and WCC locations, AllDay Supermarket now operates 35 stores, including locations in Bataan, Pampanga, Libis, Shaw, Taguig, Las Piñas, Molino, Kawit, Sta. Rosa, Alabang, C5 Extension, Doña Manuela-Las Piñas, Iloilo, Naga, General Trias, Tanza, Evia Lifestyle Center, Malolos, Dasmarinas, Nomo, Imus, Salawag, Silang, Starmall Annex-Las Piñas, Cabanatuan, Sta. Maria, Santiago, Isabela, Talisay, Cauayan, Bacolod, Sto Tomas-Batangas and Eastlake – Muntinlupa.

 


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Feb. CPI likely within target — BSP

PHILIPPINE STAR/ MICHAEL VARCAS

THE CONSUMER price index  (CPI) likely rose within the central bank’s target range in February, but faced upward pressure from higher fuel and food prices, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said.

February inflation likely settled within a projection band of 2.8% to 3.6%, Mr. Diokno said in a Viber message to reporters, noting the BSP’s point inflation forecast is at 3.2%.

This will be within the central bank’s 2-4% target band.

“The series of oil price hikes along with higher prices of rice and meat are the primary sources of inflationary pressures during the month,” the BSP said in a separate statement.

If realized, the BSP’s point inflation projection will be quicker than the 3% in January, though still slower than the 4.2% in February 2021.

A BusinessWorld poll of 15 analysts yielded a median estimate of 3.3% for last month’s inflation.

Global oil prices soared in February amid tight supply and geopolitical tensions. Brent crude oil once again jumped beyond $100 on Monday, after Western nations imposed tough new sanctions on Russia for invading Ukraine.

Based on the latest data from the Department of Energy, gasoline, diesel and kerosene have jumped by P8.75, P10.85, and P9.55 per liter, respectively, since the year started.

On the other hand, the BSP said lower electricity rates in areas serviced by the Manila Electric Co. (Meralco) will be a factor that could offset faster price increases, alongside cheaper fish and vegetable products.

Meralco earlier said the overall electricity rate dropped by P0.1185 per kilowatt-hour (kWh) to P9.5842 per kWh in February from a month earlier. This means typical households in Metro Manila will see a reduction of around P24 in their bills due to lower generation charges.

“Looking ahead, the BSP will continue to monitor emerging price developments and possible second-round effects to help achieve its primary mandate of price stability that is conducive to balanced and sustainable economic growth of the economy,” the BSP said.

At its policy review on Feb. 17, the central bank raised its inflation forecast for the year to 3.7% from 3.4% previously due to higher global oil and nonoil prices.

The Monetary Board kept interest rates at record lows to support the recovery, but said it will be ready to arrest second-round effects of inflation due to higher oil prices when needed.

The Philippine Statistics Authority will release the February inflation report on Friday (March 4). — Luz Wendy T. Noble

January bank lending quickest in 19 months

BW FILE PHOTO

By Luz Wendy T. Noble, Reporter

CREDIT GROWTH in January accelerated to its fastest rate in 19 months, as banks began lending more to consumers amid the looser mobility restrictions in the country.

This also reflected the quicker pace of liquidity growth during the month.

Data from the Bangko Sentral ng Pilipinas (BSP) released on Tuesday showed outstanding loans by big banks rose by 8.5% to P10.002 trillion in January from P9.217 trillion a year earlier.

This was much faster than the 4.8% increase in December and marked the sixth consecutive month of expansion in outstanding loans. It was also the quickest growth rate since the 9.6% seen in June 2020.

“Bank lending improved further as easing coronavirus disease 2019 (COVID-19) restrictions and the continuous vaccine rollout supported market sentiment and demand,” BSP Governor Benjamin E. Diokno said in a statement.

Inclusive of reverse repurchase agreements, credit growth stood at 8.7%.

Bank lending also rose by 3% month on month, even as COVID-19 cases spiked in January.

The faster lending expansion during the Omicron surge reflected economic growth recovery, Security Bank Corp. Chief Economist Robert Dan J. Roces said.

“Mobility, for one, has improved much and stable at or very near the pre-pandemic level, and this tells us that consumer and business sentiments are improving, thereby translating to capital expansion and private consumption,” Mr. Roces said in a Viber message.

In January, production loans rose by 9.6% year on year, quicker than the 6% growth in December. This was mainly driven by an increase in loans for real estate activities (16.8%), financial and insurance activities (17.1%), information and communication (31.4%), and manufacturing (11.5%).

On the other hand, borrowings for business activities related to agriculture, forestry, and fishing (-5.6%); mining and quarrying (-15.6%); accommodation and food services (-4.8%); administrative and support services (-8.6%); and education (-9.5%) continued to decline.

Meanwhile, consumer borrowings inched up by 0.1% in January. This was the first expansion in 13 months or since the 4.4% growth in December 2020.

This was driven mainly by a 6.8% rise in credit card loans, while motor vehicles (-5.4%) and salary loans (-8.7%) still contracted.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said borrowers may have taken advantage of the still-low interest rates ahead of expected global monetary policy tightening and normalization.

“Some borrowers rushed financing activities/requirements in view of the increase in borrowing costs locally and globally amid elevated inflation and, as a matter of prudence, in preparation for the widely expected US Federal Reserve decision to accelerate reducing bond purchases,” Mr. Ricafort said in a Viber message.

At its Feb. 17 policy review, the Monetary Board kept interest rates at record lows but cited risks to recovery as the pandemic stretched on. However, officials said they will be ready to respond in case there is a need to arrest potential second-round effects in inflation amid higher oil prices.

“The BSP continues to prioritize policy support for the economy in order to sustain the recovery in credit activity amid the continued uncertainty in the growth outlook,” Mr. Diokno said.

“Nevertheless, stronger signs of recovery in overall economic activity will allow the BSP to carefully plan for the eventual normalization of its pandemic-related interventions when conditions warrant, in line with its price and financial stability mandates,” he added.

Security Bank’s Mr. Roces said the BSP’s focus will likely be on supporting economic growth for most of the first half of 2022 unless inflation risks become “too compelling to ignore.”

M3 GROWTH
Domestic liquidity grew by 9.8% in January, outpacing the 7.3% rise in December, BSP data showed.

M3 — which is the broadest measure of money supply in an economy — inched up by 2.8% month on month.

Domestic claims rose by 9.6%, quicker than the 7.7% in December.

Net claims on the central government increased by 19.6%, while claims on the private sector jumped by 6.1%. Growth in net foreign assets went up by 6.2%.

Mr. Diokno said the BSP has infused about P2.3 trillion in liquidity support to the financial system, which is equivalent to about 12.5% of GDP.

Economic recovery seen to get ‘significant’ boost from shift to Alert Level 1

PHILIPPINE STAR/ MICHAEL VARCAS
A GENERAL VIEW of the traffic along EDSA on Feb. 28, a day before the National Capital Region further loosens restrictions. — PHILIPPINE STAR/ MICHAEL VARCAS

By Revin Mikhael D. Ochave
and Kyle Aristophere T. Atienza, Reporters

BUSINESS GROUPS expect the Philippine economy’s recovery will get a “significant” boost as the country transitions to a “new normal.”

At the same time, the government on Monday reminded the public that the coronavirus disease 2019 (COVID-19) pandemic is not yet over, even as the National Capital Region (NCR) and 38 other areas will be under Alert Level 1 starting today (March 1).

“The removal of restrictions on the movement of people would assist enterprises in returning to pre-pandemic production and sales operations, particularly those where working from home is not possible or practical. With no more capacity constraints, service businesses, such as restaurants and retail shops, would regain lost patronage,” Alfredo E. Pascual, Management Association of the Philippines (MAP) president, said in a statement on Monday.

Under Alert Level 1, all business establishments can operate at full capacity.

Trade Secretary Ramon M. Lopez said on-site work is highly encouraged under Alert Level 1 to help the country’s economic recovery.

“We are highly encouraging on-site work. Work from home is allowed and optional… We are encouraging people to go to the office since it is included in reviving the economy,” he said in Filipino during a radio interview.

MAP’s Mr. Pascual said allowing people to return to their offices will also “address mental health issues caused by prolonged isolation and a lack of regular face-to-face interactions.”

“Of course, the required minimum health and safety protocols (vaccination, ventilation, social distancing, etc.) must be followed. Coordination with relevant sectors, such as transportation, is needed to avoid bottlenecks in mobility,” he added.   

In a mobile phone message, Makati Business Club Executive Director Francisco “Coco” Alcuaz, Jr. said the business sector welcomes the continued lowering of COVID-19 restrictions.

“On-site work will be a much-awaited boon to retail, food, transport, and other businesses, accelerating economic recovery,” he said, adding that companies should still consider to find a way to incorporate remote work.

Meanwhile, Steven T. Cua, Philippine Amalgamated Supermarkets Association (Pagasa) president, said in a mobile phone message that Alert Level 1 will hopefully lift consumer and business confidence.

Mr. Cua, however, said health and safety protocols should still be implemented such as requiring vaccination cards and maintaining social distancing. There should still be constant reminders about the threat of COVID-19, he added.

“People have trickled into the malls but not in levels before the lockdowns. For stand-alone supermarkets, the trickle is more tempered as people miss the nonessentials (eating out, cafés and bars, children’s arcades, etc.) more since everyone was deprived of these activities for a longer period of time,” Mr. Cua said.   

Rosemarie B. Ong, Philippine Retailers Association (PRA) president, said in a mobile phone message that retailers see the looser mobility restrictions as key to the sector’s recovery.

“It is a welcome note for us and allow all retailers to fully recover. We see improvements in reported COVID-19 cases and we see it as a relief and good news. We are hoping for a strong recovery,” Ms. Ong said.   

The Philippine economy expanded by 7.7% in the fourth quarter of 2021 as most parts of the country were under Alert Level 2 from November to December. This brought full-year growth to 5.6%, a turnaround from the record 9.6% contraction in 2020.

The government is targeting 7-9% growth for 2022.

Similarly, the Department of Tourism (DoT) is optimistic the tourism sector will show signs of a stronger recovery after NCR and other areas are placed under Alert Level 1.

Under Alert Level 1, the Safe, Swift, and Smart Passage (S-Pass) travel management system is not required for interzonal travel to areas under the same alert level, based on updated guidelines on the Nationwide Implementation of Alert Level System for COVID-19 Response.   

“Traveling between places under Alert Level 1 status, such as Baguio, Boracay, Ilocos Region, Aurora, Batanes, Laguna, Puerto Princesa City, Bacolod, Guimaras, Camiguin, and Davao City, is now easier and more convenient. The DoT anticipates with optimism the revival of many tourism jobs and opportunities that were once lost to the pandemic,” Tourism Secretary Bernadette Romulo-Puyat said in a statement on Monday.    

‘NOT ENDEMIC’
The Philippines is still at a level where it is transitioning to a new normal, Health Undersecretary Maria Rosario S. Vergeire told a televised Palace briefing.

“The pandemic is not over yet. We have yet to reach an endemic stage,” she said in Filipino. “We are still in a situation where we want to transition to a new normal.”

The de-escalation to Alert Level 1 is based on metrics, which include case trends, healthcare utilization rate, and vaccination rate.

Ms. Vergeire said the government may once again raise the alert level if cases and hospital utilization rates increase.

She said the government may shift its monitoring focus from COVID-19 numbers to the utilization rate in hospitals if most infections recorded nationwide and globally continue to be mild.

The Health official said establishments in areas under Alert Level 1 must self-regulate to prevent a sudden spike in infections.

“The community, establishments, spaces should be ready when cases increase again,” she said. “This is our new normal. It’s really self-regulation.”

Cabinet Secretary Karlo Alexei B. Nograles said at the same briefing that public and private establishments in areas under the lowest alert level are no longer recommended to set up disinfection tents, misting chambers and sanitation booths.

He added that digital contact tracing is also optional in areas under Alert Level 1.

The government is aiming to vaccinate more people as it reopens the national economy. A local government must vaccinate 80% of seniors before it can be put under Alert Level 1.

In areas under Alert Level 1, people aged 18 and above are still required to present proof of full COVID-19 vaccination before participating in mass gatherings and entering indoor establishments.

The country has fully vaccinated 63.09 million people as of Feb. 27, while 68.73 million have received an initial dose, Mr. Nograles said. It has injected 10.14 million booster shots.

Mr. Nograles expressed confidence that the Russia-Ukraine crisis will not significantly affect the country’s immunization program, saying the Philippines already has enough supply of COVID-19 vaccines.

“We are confident we have enough vaccine supply now here in our country,” he said. “We’re also very confident that whatever happens in the tensions happening now in Ukraine, we, with the international community also, will ensure that the vaccine supplies needed for the Philippines will not be hampered or delayed.”

Meralco net income jumps as energy sales rebound

MERALCO.COM.PH

MANILA Electric Co. (Meralco) posted a 9.5% increase in core net income in the fourth quarter last year to P6.55 billion as energy sales volume surged, the country’s largest electricity seller said on Monday.

In a media briefing, Meralco Chief Finance Officer Betty C. Siy-Yap said the quarterly sales improvement was “due to increased mobility and easing of restrictions.”

For full-year 2021, the electric utility reported a consolidated core net income of P24.61 billion, 13.4% higher than the earlier year as energy sales volume returned to near pre-pandemic levels. It also cited the contribution from its power generation business.

Reported income climbed 44% to P23.5 billion in 2021 from P16.32 billion previously with the exclusion of exceptional charges from the impairment recognized in 2020 on its investment in Singapore-based PacificLight Power Pte. Ltd.

In a statement released after the briefing, Meralco Chairman Manuel V. Pangilinan said: “Our excellent operational and financial performance in 2021 reflects Meralco’s continuing efforts to invest in customer-centric innovations and in our digital transformation journey to deliver quality and reliable service to our more than seven million customers, in the midst of a continuing pandemic.”

Meralco’s consolidated revenues jumped by 16% to P318.5 billion last year from P275.3 billion in 2020 as electricity sales rose 15% to P309.3 billion from P267.9 billion.

“We would also like to highlight that this has the inclusion of revenues from Global Business Power Corp. (GBP), which began consolidation in April 2021,” Ms. Siy-Yap said during the briefing.

Meralco unit Meralco PowerGen Corp. took full ownership over GBP in January 2021.

The power giant said energy sales volume went up by 6% to 46,073 gigawatt-hour (GWh), which it attributed to “sustained residential consumption, ramp-up in commercial volumes amid more relaxed quarantine restrictions, and strong industrial rebound within the franchise areas.”

It said energy sales volumes from Meralco and its unit Clark Electric Distribution Corp. increased by 6% and 10%, respectively.

In terms of the sales mix, residential sales accounted for 37%, while commercial and industrial sales accounted for 33% and 30%, respectively, Meralco said.

The continued work-from-home setup and remote learning have driven residential sales volume to grow 3% to 16,913 GWh from 16,488 GWh year on year.

The easing of community quarantine restrictions especially in the months nearing December and the ramped-up government vaccinations boosted commercial sales volume by 3% to 15,234 GWh from 14,766 GWh.

Meanwhile, Meralco said the industrial sales volumes returned to near pre-pandemic level, registering the biggest increase of 13% to 13,782 GWh from 12,176 GWh, backed by the strong performance of the semiconductor industry.

The company’s customer count also widened by 4% to 7.4 million by end-2021 from 7.1 million in 2020 as energization of new customers for both ordinary service and project-covered applications hit an all-time high, exceeding 2019 and 2020 levels, it said.

SUSTAINABILITY COMMITMENT
Meralco said it eyes adopting next-generation technologies, including battery energy storage system (BESS), offshore wind, and nuclear, specifically modular nuclear reactors to hasten decarbonization efforts.

The company said it would study more advanced technology to be incorporated on its daily operations such as green hydrogen. Meralco has committed to be coal-free by 2050.

“We also reaffirm our commitment to deeply embed sustainability in our strategy and operations, while embarking on a just, orderly, and affordable transition to clean and earth-friendly energy. Our long-term sustainability Strategy maps out this important decarbonization plan beginning today through 2050,” Mr. Pangilinan said.

Meralco shares at the local bourse jumped P5.00 or 1.38% to P368.00 apiece on Monday.

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., which has interest in BusinessWorld through the Philippine Star Group, which it controls. — Marielle C. Lucenio

SMIC records 65% profit surge as pandemic restrictions ease 

SM Investments Corp. (SMIC) posted a 65% net income growth last year after seeing a surge in consumer spending as the country eased its pandemic restrictions amid the holiday season.

In a disclosure to the exchange on Monday, the company said it logged a P38.5-billion net income in 2021, up from the P23.4 billion it registered the previous year.

Meanwhile, SMIC’s consolidated revenues inched up 9% to P428.1 billion from P394.2 billion year on year.

“We saw a rebound in consumer spending in the run-up to Christmas as restrictions across the country eased. This led to improved performance in our retail and mall units as our banks continued to deliver solid results,” SMIC President and Chief Executive Officer Frederic C. DyBuncio said.

“It is our hope that the further easing of restrictions after the latest surge in COVID cases will lead to sustained recovery of the economy and our businesses as the country adjusts to living with the virus. We are committed to continue our expansion plans,” he added.

The company’s banking segment reportedly accounted for 51% of its net income.

BDO Unibank, Inc. generated a P42.8-billion net income in 2021, a 51% increase from the P28.2 billion logged the previous year. The company said the growth was driven by an 11% climb in non-interest income and normalized provisions.

Meanwhile, China Banking Corp. reported a 25% net income growth to P15.1 billion. SMIC said the bank ended the year with “sustained core business growth and effective cost management.”

SMIC’s property segment made up for 25% of its net income last year. SM Prime Holdings, Inc. logged a 21% profit jump to P21.8 billion in 2021 from P18 billion a year ago, while its 2021 revenues were at the “same level” as 2020 with P82.3 billion.

Meanwhile, SMIC’s retail business contributed 17% to its profits in 2021.

SM Retail, Inc.’s net income in 2021 surged 133% to P9.6 billion from P4.1 billion, while its revenues inched up 2% to P303.9 billion from P296.8 billion. SMIC said the improved profitability of the segment was driven by the sustained growth in SM Stores and Specialty Stores sales.

SM launched 294 new stores in 2021, including new SM Stores in Caloocan and Camarines Norte. The food group, comprised of SM Markets (SM Supermarket, SM Hypermarket, and Savemore), Alfamart, and Waltermart, collectively launched 219 new stores.

SM Retail now has a portfolio of 3,215 outlets, including 1,539 specialty retail stores, 1,207 Alfamart stores, 214 Savemore branches, 73 WalterMart outlets, 68 The SM Stores, 62 SM Supermarkets, and 52 SM Hypermarkets.

Meanwhile, SMIC’s portfolio investments contributed 7% to its net income. In 2021, the company increased its stake in Goldilocks Bakeshop, Inc. to 74% from 34.1% last year, as well as increased its ownership in the 2GO Group, Inc. to 52.85% from 30.53%.

“We believe our portfolio investments have strong assets, synergies with our core businesses, and enormous long-term growth potential,” Mr. DyBuncio said.

SM’s total assets went up 10% last year to P1.3 trillion. The company said it maintains a “healthy balance sheet” with a gearing ratio of 38% net debt to 62% total equity.

SM shares at the stock exchange improved 2.41% or P21 on Monday, closing at P892 apiece. — Keren Concepcion G. Valmonte

SMPC income surges, hits record-high P16 billion

SEMIRARAMINING.COM

SEMIRARA Mining and Power Corp. (SMPC) reported its consolidated net income jumped by 393% to P16.2 billion last year on the back of “larger than expected” coal demand, the coal supplier and power generator said on Monday.

In a disclosure to the exchange, SMPC said last year’s income was the highest it has posted in its 41-year history. The increase translated to P3.81 per share earnings with a return on equity of 36%.

“The stellar earnings result was largely attributable to stronger-than-expected coal demand, which pushed index prices to record highs before settling at elevated levels because of the China price cap. The power segment further boosted [the company’s] performance with improved sales and prices,” SMPC said.

SMPC prides itself as the lone company in the country that mines its own fuel. Aside from supplying coal domestically, it also exports coal to neighboring countries, including the three top coal importers in the world: China, Japan, and South Korea.

The mining and power company said its coal production rose by 8%, coal shipments jumped 16%, and the average coal selling prices jumped 71%.

Its coal segment alone contributed to 70% of earnings with P11.4 billion, while SMPC subsidiaries SEM-Calaca Power Corp. (SCPC) and Southwest Luzon Power Generating Corp. (SLPGC) accounted for 35% and 5%, respectively.

SCPC contributed P3.3 billion to the parent company’s income, while SLPGC shared P1.4 billion.

“Our results reflect the hard work of our people. They rose to the challenges of the pandemic and delivered exceptional value to our stakeholders,” said SMPC President and Chief Operating Officer Maria Cristina C. Gotianun in a statement.

The parent company reported that SCPC’s standalone revenues jumped by 144% to P3.73 billion from P1.31 billion, while it swung back to profitability with a net income of P529 million from a P142-million net loss in 2021.

SLPGC revenues also climbed 20% to P1.78 billion and its net income widened by 113% to P232 million.

SMPC shares at the local bourse rose P2.70 or 10.8% to close at P27.70 apiece on Monday. — Marielle C. Lucenio

AREIT earns P2.4 billion amid stable operations

AYALA LAND, Inc.’s (ALI) real estate investment trust (REIT) unit AREIT, Inc. booked a P2.43-billion net income in 2021, the company said in a statement on Monday.

The full-year income already takes into account the P165-million net fair value change in its investment properties. Excluding that change in investment properties, net income would amount to P2.27 billion.

The Ayala-led REIT firm also said it saw stable operations in 2021, resulting in a 98% occupancy rate and a 98% rental collection rate.

AREIT generated a 63% revenue growth to P3.32 billion in 2021, while its earnings before interest, taxes, depreciation and amortization (EBITDA) went up 55% to P2.4 billion.

AREIT ended the year with a total gross leasable area (GLA) of 549,000 square meters (sq.m.) and assets under management (AUM) worth P53 billion. It is targeting to grow its AUM to reach P60 billion by this year.

The company aims to expand its asset portfolio at around 100,000 sq.m. of GLA in 2023 and 2024, which would increase its AUM by P10-15 billion.

“The company maintains its thrust to grow and diversify its asset portfolio by sector, location, and income contribution and achieve a total shareholder return range of 10-12%,” AREIT said.

The company bought Pasig City-based The 30th in 2021, adding 75,000 sq.m. to its GLA on top of a 98,000 sq.m.-property in Laguna Technopark, which is currently leased by Integrated Micro-Electronics, Inc.

AREIT also put into place a property-for-share deal with its sponsor ALI and subsidiaries last year, allowing AREIT to add the Vertis North Office Towers and mall, Ayala Life FGU office condo units, One and Two Evotech BPO buildings, and Ayala Northpoint BPO Buildings.

In a separate disclosure to the exchange on Monday, ALI’s board of directors approved a plan to raise up to P45 billion in debt capital.

ALI said the proceeds will be used to refinance maturing debt and to partially fund general corporate requirements. Funds will be raised via issuing retail bonds and/or corporate notes to be listed on the Philippine Dealing and Exchange Corp. and/or through the execution of bilateral term loans.

AREIT shares at the stock exchange climbed 0.61% or 30 centavos to close at P49.30 apiece on Monday, while ALI stocks went up 4.84% or P1.80 to finish at P39 each. — Keren Concepcion G. Valmonte

New ventures and the return of star-studded events as Star Magic marks 30th year

STAR MAGIC head Lauren Dyogi with the nine Kapamilya stars

DESPITE all the difficulties of the last two years, ABS-CBN’s talent agency Star Magic is celebrating its 30th anniversary with new television programs, international collaborations, and star-studded events.

Back in 1992, then Executive Vice-President and General Manager for ABS-CBN Freddie M. Garcia, together with then Program Director Johnny Manahan, had the idea to develop talents exclusively for the network’s programs and established the Talent Center. In the same year, it launched its first project, the afternoon youth show, Ang TV.

Over the next three decades, the talent agency — renamed Star Magic — has provided workshops in acting, dance, art, script appreciation, styling, and voice production. Star Magic alumni include Angelica Panganiban, John Lloyd Cruz, Kim Chui, JC De Veyra, Jed Madela, Sarah Geronimo, Maja Salvador, and Liza Soberano.

Its active artists, who recently signed new contracts, have a number of projects lined up for 2022.

Actor Gerald Anderson will soon star in the drama series, A Family Affair, along with actor and singer Sam Milby. Anderson will also star in a film, To Russia with Love. Actor Jake Cuenca will be working in the upcoming international series Cattleya Killer. Real-life couple Loisa Andalio and Ronnie Alonte will star in the upcoming drama series, Love in 40 Days. Meanwhile, Jolina Magdangal and Shaina Magdayao will continue to star in Magandang Buhay and FPJ’s Ang Probinsyano, respectively. Zanjoe Marudo is currently in the cast of The Broken Marriage Vow, the Filipino adaptation of BBC One’s Doctor Foster.

A NEW MEDIA LANDSCAPE
This year, Star Magic looks forward to bringing talents to global events in collaboration with TFC (The Filipino Channel). It will also bring back star-studded sports events, and the Star Magic Ball red carpet event, together with ABS-CBN’s Creative Programs, Inc. (CPI).

“We are venturing into a new year. Nagbago kasi ang landscape (the landscape changed). When we were on free TV, it was so easy to come up with programs…Nagyon, iba na ang engagement (Now, engagement is different). Hindi lang sa (It’s not only on) free TV, [but also] social media,” Star Magic and ABS-CBN entertainment production head Laurenti Dyogi said at a hybrid press conference on Feb. 23.

“We will continue to evolve, grow, and make activities not only to build camaraderie among the artists, but also to build their characters and to build their skills.”

Star Magic Studio will also partner with Star Cinema, Mavx Productions, and Regal Entertainment for film projects, and Star Magic Records for music projects. The talent center’s artists are also expected to be featured and star in original content on YouTube, Kumu, and other digital platforms.

“We’re now starting a catalog shoot for the new 2022 catalog of artists. We’re going to have a new website. And we’re venturing into the international arena. We’ve asked a lot of our artists to audition in international productions,” Mr. Dyogi said. “…I see it as a possibility reaching out to a global audience.”

Within the last two years, ABS-CBN has had to deal with the difficulties posed by the ongoing coronavirus disease 2019 (COVID-19) pandemic, has seen the renewal of its broadcast franchise denied by a hostile Congress, and some artists have decided to venture into other pursuits.

Mr. Dyogi, however, stressed that they are focusing on talents who have stayed with them.

“The loss of the franchise gave us a lot of insight into what’s important in our lives and who are the people who is also important and who value that relationship,” Mr. Dyogi said.

“I think we’ve gone through the worst already. Exciting times are just ahead,” he said. — Michelle Anne P. Soliman

JoyRide gets nod for 4-wheel transport service

MOTORCYCLE ride-hailing service JoyRide announced on Monday that it had received approval from the Land Transportation Franchising and Regulatory Board (LTFRB) to operate as a transport network company (TNC).

“We are grateful that JoyRide Car is now one of the accredited 4-wheel TNC in the Philippines,” JoyRide Senior Vice-President for Corporate Affairs Jose Emmanuel “Noli” M. Eala said in an e-mailed statement.

The company said it received its certificate of accreditation as TNC from the LTFRB on Feb. 24.

To recall, JoyRide launched its motorcycle ride-hailing services in 2019.

“We are very excited to have JoyRide Car as one of the newest services available in our superapp. As always, we remain committed to providing value-for-money quality service to the public through the use of a powerful and scalable technology platform,” Mr. Eala said.

“We view this as a good development as commuters will now have another viable choice for safe, comfortable, and affordable car rides to their destination,” he added.

JoyRide’s app currently houses multiple mobility products, including JoyRide MC Taxi (motorcycle ride-hailing), JoyRide Delivery (express motorcycle deliveries), JoyRide Pabili (buy-for-me services), JoyRide Taxicle (tricycle ride-hailing), and Happy Move (2-wheel and 4-wheel courier deliveries for business).

The app also has JR Mall (online marketplace for food, groceries, and other non-food items), Buy Load, and COVID-19 (coronavirus disease 2019) Home Testing services.

The company offers its services in Metro Manila, Rizal, Bulacan, Cavite, Laguna, Baguio, and Metro Cebu.

JoyRide said that since 2019, it has onboarded more than 20,000 Kasundo Driver-Partners with vehicles ranging from motorcycles, cars, vans, and trucks.

“JoyRide Car is now accepting transport network vehicle service, or TNVS, drivers and operators to register as partners,” it added. — Arjay L. Balinbin