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OREO inspires playfulness among Filipinos, marks 110th year

For 110 years now, OREO has been satisfying and bringing delightful bonding time to families with its delicious and high-quality taste.

The world’s number one cookie and best-tasting sweet sandwich was born in the Chelsea Market in Manhattan back in 1912. Since then, OREO has been offered in other flavors and varieties yet continues to be the sweet snack that is part of and inspires more playful moments among consumers around the world.

This is how OREO’s maker Mondelēz International wants to celebrate the cookie’s 110th year — make more families have playful moments with OREO.

“OREO is known to be a playful cookie because of the fun experience, the delicious cookie, the high-quality product, and the way that it brings people together because of the fun and playful way to consume it,” said Criselle Villafuerte, senior brand manager for biscuits of Mondelēz International.

Everyone is pretty much aware of the iconic tradition of enjoying an OREO: twist the cookie, lick it, and dunk it in milk. This is what makes the cookie playful and brings families together to have fun.

Mondelēz International wants more Filipinos to have such a fun experience with OREO to mark its 110th year by offering new flavors, making the delight more accessible, and supporting more playful moments among families.

Aside from the original OREO, its beloved taste can also be enjoyed in different and playful snacking formats in the Philippines. Each year, Mondelēz Internatinoal launches seasonal flavors in the market. It brought out around three flavors last year, among which is the new OREO Fizzy and the return of the Peanut Butter and Chocolate OREO and the Golden OREO.

This year, as part of its 110th birthday celebration, new OREO flavors will be available that consumers can enjoy.

“We are also offering different pack offers, the P7.60 pack at sari-sari stores.Iin supermarkets we are also coming up with a more value-for-money or budget pack that will enable people to enjoy an OREO,” Ms. Villafuerte shared.

And to support more fun and playful experiences with OREO among families, the Save Dads campaign was launched in January, which is also part of OREO’s 110th celebration.

The campaign involved the #OREOSaveDads dance challenge that hopes to bring out the playful side of hardworking dads as they join their kids in enjoying Oreo.

“We know that now in the pandemic, work-life balance is difficult as everyone’s working from home. That is why we have the Save Dads campaign to remind everyone to always have playful moments with your kids even you are working from home. And you can use an OREO for that,” Ms. Villafuerte said.

OREO will mark its 110th birthday in the Philippines in May and will be filled with exciting activities that consumers should watch out for. “We want to celebrate the 110 years of making consumers’ lives more playful,” Ms. Villafuerte said.

 

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Manufacturing cools down anew in January

Factory output sustained its slowdown for the second straight month in January as the fresh  surge in coronavirus disease 2019 prompted the government to reimpose stricter mobility curbs.

Preliminary data from the Philippine Statistics Authority’s (PSA) Monthly Integrated Survey of Selected Industries (MISSI) showed manufacturing, as measured by the volume of production index (VoPI), grew by 16.5% year on year in January.

This was slower than December’s revised 21.3% growth and a turnaround from the 14.5% contraction recorded in January 2021.

This is the second month straight the VoPI posted a slower growth. It was also the 10th straight month that factory out posted positive reading.

Sixteen out of 22 industry divisions posted growth in January, led by manufacture of tobacco products which rose by 88.4% annually from -14.5% in December. It was followed by wood, bamboo, cane, rattan articles, and related products (86.8% from 110.3%) and basic pharmaceutical products and pharmaceutical preparations (47.8% from -30%).

Meanwhile, manufacture of wearing apparel (-24.2% from -0.4%) led the decliners that month, followed by leather and related products, including footwear (-6.3% from 0.5%) and chemical and chemical products (-2.3% from 31.5%).

In comparison, IHS Markit’s Philippines Manufacturing Purchasing Managers’ Index ended four consecutive months of growth after hitting the 50 mark in January, signifying no change in manufacturing condition the previous month.

The 50 mark separates manufacturing expansion and contraction.

The capacity utilization — the extent to which industry resources are used in producing goods — averaged 67.9% in January, faster from the revised 67.4% the previous month. Of the 22 sectors, 20 averaged a capacity utilization rate of at least 50%. — A. O. A. Tirona

Today’s visionary, tomorrow’s icon

ArchiNEXT: Young Designers’ Competition believes that young mind transforms the visions into our future’s icon. ArchiNEXT is a platform that challenges the ingenuity and proficiency of young students to showcase a sound design yet sustainable Architectural masterpieces.

ArchiNEXT is in partnership with the United Architects of the Philippines (UAP), the Council of Deans and Heads of Architecture Schools in the Philippines (CODHASP) and HCG (Hocheng Philippines Corporation) to help in recognizing the passion and hard work of each young designer in transforming them from an industrious learner to a trailblazer. ArchiNEXT is a three part program: Competition, Scholarship, and Internship.

From last year’s competition with the theme LINGAP: General Hospital and Extended Emergency Facility, ArchiNEXT related its theme to our nation’s current situation. As the pandemic hit the Philippines, our general healthcare system including General Hospitals and Extended Emergency Facilities was greatly affected, and ArchiNEXT challenged our young students to envision a sustainable and relevant structure that will benefit our rural communities especially in trying times.

FORMOSA: A Proposed Hospital and Extended Emergency Facility, design made by Yvonne Joy Salamero and Adrian Jerome Pajarillo from Bicol University,stood-out from all78 qualified entries and was awarded as last year’s Grand Winner. Coming from second place were students of University of Santo Tomas, Xyruz Jior Caluag, Keilah Raj Segovia and Danison de Guzman, with their design PIKALAWAG COMMUNITY HOSPITAL: An Integrated General Hospital and Community Aquaponic Garden, and the 3rd place was KALINAW by Gelene Francisco and Peter Jhon Marc Tubo from Bicol University

Now on its 8th Season, the theme for this year is LULINGHAYAW: A Localized Sustainable Eco-tourism Destination that challenges architectural students to envision a Filipino-inspired tourist destination. This time, ArchiNEXT takes on the challenge of promoting Philippine Architecture, Filipino Culture, and Philippine customs and traditions.

As ArchiNEXT 2022 gets more exciting it received entries from 26 different colleges and universities nationwide. A total of 151 qualified entries will be screened to determine the Magic Number Finalists who will be up for the Final Screening scheduled to be held on March 18, 2022.

Join us and be part of the ArchiNEXT: Young Designers’ Competition when we do the Final Screening to witness the story of this year’s Winners by visiting our FB page at: www.facebook.com/archinextph. The winners for ArchiNEXT2022 Winners will be announced during the celebration of Construction Expo (CONEX) and National Convention for Architects (NATCON). Likewise the Top 10 entries will also be displayed at the ArchiNEXT Gallery to showcase our very promising architectural students with their exemplary masterpieces.

ArchiNEXT: Young Designers’ Competition believes that this is just the beginning of every young student’s journey as an Architect. Scholarship and Internship awaits all winners which will also help the students to widen-up their limitless creativity because challenges never end.

Browse more amazing stories from ArchiNEXT previous winners and updates for at their Official website at www.archinext.ph.  #archinext2022 #lulinghayaw #archinext

 

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PHL moves to cushion oil shock impact

PHILIPPINE STAR/ MICHAEL VARCAS
Several bottles are filled with petroleum products in San Jose, Rodriguez, Rizal, March 4. Fuel retailers raised pump prices on Tuesday. — PHILIPPINE STAR/ MICHAEL VARCAS

ECONOMIC MANAGERS approved the implementation of several measures to cushion the impact of the Russia-Ukraine crisis on the Philippine economy, such as temporarily allowing more imports of rice, pork and fish, increasing coal supply, and raising fuel subsidies for public transport drivers.

In a televised Palace briefing on Monday evening, Finance Secretary Carlos G. Dominguez III said he does not expect the Russia-Ukraine crisis to “last very long,” adding the Philippine economy will only be affected because oil and food prices will continue to rise.

“The Philippine economy will likely be collateral damage. It is as if we are hit by a ricocheting bullet,” he said.

“This crisis may increase the prices across several sectors and thereby cause our inflation rate to breach our target, but with the measures that we discussed at the Economic Development Cluster… we are confident that we will be able to keep the inflation within our target range of 2 to 4% and maintain our growth path of 7 to 9% this year,” Mr. Dominguez said.

At the same briefing, Socioeconomic Planning Secretary Karl Kendrick T. Chua detailed the 14 measures approved by the Economic Development Cluster that would help ease the impact of the war between Russia and Ukraine on the economy.

This includes increasing imports of coal, corn, rice, pork, fish, sugar, and wheat.

He told President Rodrigo R. Duterte that economic managers will request for the issuance of an executive order to reduce tariffs.

The government can increase its supply of coal and lower prices by removing the most favored nation tariff rate of 7% until December, Mr. Chua said.

He also said there should be a continuous release of sanitary and phytosanitary import clearances for rice, and that the lower tariff rate for pork be extended.

Tariff rates for corn should be lowered, while direct importation of half of food manufacturers’ sugar stock should be allowed, Mr. Chua added.

He said the economic team recommended legislation that will increase the buffer stock of petroleum to 45 days from 30 days. A new law could also raise the buffer stock of liquefied petroleum gas (LPG) to 15 days from seven, he added.

“When we expand the buffer stock, we can ensure more adequate supply and meet demand in case there is a global shortage,” Mr. Chua said.

Mr. Chua said shifting the entire country to Alert Level 1, the least strict pandemic restrictions, would help strengthen the domestic economy.

“While we cannot prevent the risks coming from the global perspective, we can strengthen our domestic economy to provide the people with more jobs and opportunities,” he said.

The cluster also recommended that the government increase the fuel subsidy program for public utility vehicles to P5 billion from P2.5 billion.

“The first tranche we will give in March, the second tranche in April,” Mr. Chua said.

The additional subsidy can be funded through excess tax collections in March, National Economic and Development Authority (NEDA) Undersecretary Rosemarie G. Edillon said at a public briefing on Tuesday.

In addition, the cluster supports Senate Bill No. 139 or the Philippine Livestock Industry Development Act establishing a development fund for the sector to increase daily production.

Other recommendations by the economic team included allowing foreign ownership in micro-grid, solar, wind and tidal energy; promoting energy conservation; suspending pass-through fees charged by local governments; and including renewable energy and agriculture into the Strategic Investment Priority Plan, which details priority industries for government incentives. — Jenina P. Ibañez

Pressure to raise jeep fares grows

PHILIPPINE STAR/ MICHAEL VARCAS

By Arjay L. Balinbin, Senior Reporter

THE LAND Transportation Franchising and Regulatory Board (LTFRB) is facing pressure to raise the minimum jeepney fare as fuel prices are expected to continue to soar.

The LTFRB on Tuesday held a hearing on the petition to temporarily restore the minimum jeepney fare to P10 while there is no decision yet on two separate petitions to raise the base fare to P14-15.

LTFRB Chairman Martin B. Delgra III said petition to restore the P10 minimum jeepney fare will now be up for resolution, while the other proposed hikes will be heard on March 22.

Transport groups 1-United Transport Koalisyon (1-UTAK), Pasang Masda, Alliance of Transport Operators and Drivers Association of the Philippines (ALTODAP), and Alliance of Concerned Transport Organizations (ACTO) asked the LTFRB to restore the minimum fare to P10 for jeepneys from the current P9 in the National Capital Region and Regions 3 and 4. The LTFRB decided to “temporarily” reduce the minimum jeepney fare to P9 as diesel pump prices fell in December 2018.

The same groups are seeking a base fare of P14, or an increase of 55.56% from the current minimum jeepney fare, while the Liga ng Transportasyon at Operators sa Pilipinas (LTOP) is asking for a P15 minimum fare.

Greg G. Pua, Jr., counsel for 1-UTAK, Pasang Masda, ALTODAP, and ACTO, said the base fare should be reverted back to P10 pending resolution of their fare hike petition.

He noted the price of diesel was only P38 per liter in December 2018, and when they filed the petition in January 2022, diesel was already around P54.37 per liter.

“And now, because of the current increases, there is an additional P5.85, making the price of diesel around P62 to P63, a big difference from the price of P38 when the LTFRB provisionally reduced the minimum jeepney fare and a difference of P15 when it permanently granted a P10 minimum fare for jeepneys,” Mr. Pua said.

Rep. Vigor D. Mendoza II of 1-UTAK said the average daily fuel consumption of a jeepney is anywhere between 50 to 60 liters.

“We are doing around 3.2 to 3.5 kilometers per liter right now, and we are doing a passenger load of around 300 passengers a day (prior to Alert level 1),” he told the board during the hearing.

“The cost of fuel increase translates to around P1,200 additional expense. That’s 60 liters times the P20 jump — from P40 per liter to P60 per liter. If you have 300 passengers a day, the P4 or P5 we are asking for is just enough to cover this increase in fuel price as well as the increase in spare parts cost,” he added.

The conflict between Russia and Ukraine continues to push fuel prices upwards. Fuel prices increased for the tenth consecutive week on Tuesday: P3.60 per liter for gasoline, P5.85 for diesel, and P4.10 for kerosene. Since the start of the year gasoline, diesel, and kerosene prices per liter have risen by P13.25, P17.50, and P14.40, respectively.

Meanwhile, LTOP President Orlando Marquez invoked the section 4 of LTFRB’s Memorandum Circular No. 2019-035 on fare adjustment formula, which stated: “With due consideration to regional data and other surrounding circumstances, the LTFRB shall, without the need for public hearings and other special proceedings, increase or rollback the fare whenever such change occurs in fuel price.”

But LTFRB’s Mr. Delgra argued that the same memorandum stated that “changes to the formula shall be determined by the LTFRB, subject to the concurrence of the Department of Transportation, on the basis of new findings, studies, and other socioeconomic factors.”

In his presentation, LTFRB Officer-in-Charge for Franchise Planning and Monitoring Diosdado B. Santiago, Jr. cited a report by the National Economic and Development Authority in 2018, saying the proposed hike “would mean fueling further inflationary expectations when these costs are transferred to the consumers.”

To avoid transferring the costs to the consumer, Mr. Santiago said that there is a P2.5-billion fuel cash subsidy under the 2022 budget aimed at supporting around 264,443 jeepney operators and drivers under the LTFRB and 113,000 from other agencies or a total of 377,443 beneficiaries.

Mr. Santiago noted that the government has a service contracting program, but Mr. Pua, the transport groups’ lawyer, said not all jeepney drivers and operators are able to join this program.

In an analysis sent to BusinessWorld, transport expert Rene S. Santiago said the jeepney sector, numbering about 180,000 nationwide, is being killed slowly not just by the pandemic but also the worsening traffic congestion.

“Traffic congestion that crept slowly from 2011 to 2019, effectively reducing their revenue potentials by 50% and simultaneously increasing their fuel consumption by 38%; the PUVM (public utility vehicle modernization) program that set a three-year deadline for operators to replace their old fleet with new vehicles costing more than five times their previous capital; and failure of LTFRB to adjust fares with surging cost of fuel, in violation of its own directive MC-2019-035 dated 26-July 2019,” he added.

“The heaviest blow is on the lowly drivers who absorb the fuel cost and bear the market risk, aside from working more than 8 hours a day. Before the pandemic, the public utility vehicle drivers in Metro Cebu managed to earn about P600/day; a little bit higher at P800 in Metro Manila,” he also said.

Dollar reserves rise to $107.98B as of end-Feb.

REUTERS

By Luz Wendy T. Noble, Reporter

THE PHILIPPINES’ gross international reserves (GIR) edged higher as of end-February amid the higher valuation of the central bank’s gold reserves.

Preliminary data released by the Bangko Sentral ng Pilipinas (BSP) showed the GIR increased by 0.26% to $107.98 billion last month from the $107.69 billion seen as of end-January. It also went up by 2.68% from the $105.161 billion a year ago.

“The month-on-month increase in the GIR level reflected mainly the upward adjustment in the value of the BSP’s gold holdings due to the increase in the price of gold in the international market and the BSP’s net income from its investments abroad,” the BSP said in a statement on Tuesday.

The level of dollar reserves as of end-February is enough to cover about 8.4 times the country’s short-term external debt based on original maturity and 5.8 times based on residual maturity.

It is also equivalent to 10.2 months’ worth of imports of goods and payments of services and primary income.

Ample foreign exchange buffers protect an economy from market volatility and ensure the country is able to pay its debts in the event of an economic downturn.

“The GIR would help strengthen the country’s external position and, in turn, fundamentally support the country’s credit ratings,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Broken down, reserves in the form of gold were valued at $9.585 billion as of end-February, 4.4% higher than the $9.181 billion as of end-January and up 4.5% from the $9.17-billion level a year earlier.

Mr. Ricafort said global prices of gold may continue to appreciate as investors rush to safe-haven assets due to the ongoing Russia-Ukraine war.

The central bank’s foreign investments amounted to $93.107 billion, up by 0.18% from the $92.939 billion in the previous month and by 2.7% from the $90.679 billion in February 2021.

Meanwhile, foreign currency deposits dropped by a third to $554.4 million from $831.7 million a month earlier and by 83% from the $3.266-billion level a year ago.

The country’s reserve position in the International Monetary Fund (IMF) slipped by 0.14% to $798.9 million as of end-February from $800.7 million in the prior month and by 1.7% from the $812.5 million last year.

Special drawing rights — or the amount the country can tap from the IMF — was steady at $3.934 billion for the second straight month. It was more than three times the $1.232 billion as of end-January 2021.

Mr. Ricafort said ample foreign exchange buffers will be crucial for the Philippines amid heightened volatility in the markets due to the Russia-Ukraine war.

“High GIR provides greater cushion versus any further increase in the country’s import bill and widening of the country’s trade deficit, which could happen due to the sharp increase in the prices of imported oil and global commodities largely due to Russia’s invasion in Ukraine,” he said.

Oil prices have reached multi-year highs in recent days due to concerns over oil supply, with Russia being the second-biggest exporter of crude.

The BSP projects the GIR to reach $112 billion by the end of 2022.

Number of OFWs fell nearly a fifth to 1.8M in 2020

PHILIPPINE STAR/EDD GUMBAN

By Abigail Marie P. Yraola, Researcher 

THE NUMBER of registered overseas Filipino workers (OFW) declined by nearly a fifth year on year in 2020 amid the coronavirus disease 2019 (COVID-19) pandemic, data from the Philippine Statistics Authority (PSA) showed. 

The ranks of OFWs dropped by 18.6% to 1.77 million in 2020 from 2.18 million in 2019, the latest PSA’s Survey on Overseas Filipinos showed.

In 2020, there were around 1.71 million overseas contract workers (OCWs), accounting for 96% of the total. However, this was a 19% drop from the 2.11 million OCWs in 2019.

Other Filipinos who worked abroad without working visa or work permits such as tourist, visitor, student, medical, and other types of non-immigrant visas but were presently employed and working full time in other countries accounted for 3.6% of the total. The population of these workers slipped by 7.4% to 63,810 in 2020 from 68,940 in 2019.

Economists largely blamed this to the pandemic, as many countries implemented strict lockdowns and closed their borders in an effort to contain the spread of COVID-19 in 2020. As a result, many businesses shut down and workers lost their jobs.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the pandemic is the only reason for this massive decline of Filipino workers working abroad.

In an e-mail interview, he said the Department of Foreign Affairs (DFA) and the Department of Labor and Employment (DoLE) acknowledged that many OFWs were repatriated after losing their jobs and had nowhere else to go due to the pandemic.

More than 800,000 OFWs returned to the country since the onset of the pandemic, DoLE said last year.

“The COVID-19 pandemic is a global phenomenon adversely affecting both rich and poor economies worldwide, with world GDP (gross domestic product) declining by 3.9% in 2020,” said University of the Philippines School of Labor and Industrial Relations Professor Emily Christi A. Cabegin in an e-mail interview.

“To contain the contagion, countries have imposed restrictions on domestic and cross-border mobility that led to the disruption of global supply chains and closures of businesses, with severe impacts on the tourism and travel industry,” she added.

The PSA data also showed more women worked abroad than men. Female OFWs accounted for 59.6% of the total in 2020, while 40.4% were men.

Around 22.4% of OFWs were aged 30 to 34, while 20% were aged 35 to 39 and 19% were aged 45 and above.

In 2020, nearly half or 47% of OFWs were employed in “elementary occupations,” higher than the 39% share in 2019. These include household service workers, cleaning and kitchen staff, and others involved in manual labor.

Workers in services and sales accounted for 14.4%, lower than the 17.6% share in 2019, as many restaurants and shops were shuttered during the lockdowns. OFWs working as plant and machine operators and assemblers accounted for 11.5%, slightly lower from the 12.3% share in 2019.

Around 18% or 185 in every 1,000 OFWs came from the Calabarzon Region. OFWs from Central Luzon accounted for 11.8% of the total, followed by Western Visayas with 9.2%, and the National Capital Region with 8.4%.

Majority or 83.6% of the OFWs worked in Asian countries such as Saudi Arabia (26.6%), United Arab Emirates (14.6%) and Kuwait (6.4%). Other destinations were Europe (with 6.7% share), North and South America (5.2%), and Australia (3.4%).

The decline in OFWs resulted in a large decrease in remittances as well.

An OFW sent an average of P86,810 in 2020, down by 18.6% from P106,618 average in 2019.

Total remittances from OFWs reached P134.77 billion, falling by 35.9% from P210.40 billion in 2019. These comprised of cash sent home with P113.08 billion from P157.04 billion, cash brought home (P18.98 billion from P46.20 billion), and in kind (P2.71 billion from P7.17 billion).

Banks are the most preferred mode of sending cash remittances. Results of the survey show that in 2020, about 51% were sent by OFWs through banks, and 45.9% were sent through money transfer services.

“The Philippines is a major global labor-sending country and is the fourth-largest remittance recipient in the world. The economic crisis brought about by the COVID-19 pandemic resulted in massive loss of employment of OCWs in their host countries, many of whom have been forced to repatriate to the Philippines,” said Ms. Cabegin.

The pandemic brought the country’s cash remittances down by 0.8% to $29.90 billion in 2020, the first annual contraction in more  than two decades since the 18.3% contraction in 1999, central bank data showed.

With tourism and travel industry among the hardest hit by the pandemic, many  sea-based OFWs lost their jobs and many others with labor permits could not be immediately deployed.

“The COVID-19 pandemic rendered many OFWs jobless…The decline in actual remittances sent was also because of the recession brought by the 2020 lockdowns and movement restrictions,” Mr. Asuncion said.

The reference period for the survey was in April to September 2019 and April to September 2020 while estimates were based on the 2015-based Population Projections.

Number of overseas Filipino workers

DMCI Holdings profit soars on units’ strong growth

DMCI Holdings, Inc. on Tuesday reported a core net income of P5.01 billion in the fourth quarter, up 145% year on year, bringing its full-year core earnings to P17.4 billion or higher by 164% from a year earlier.

Earnings growth last year was due to surging commodity prices, recovering electricity rates, and boosted productivity, the diversified engineering conglomerate’s stock exchange disclosure said.

“Nearly all of our subsidiaries grew triple digits in 2021 because of higher productivity and what we believe is the start of a commodities super cycle,” DMCI Holdings Chairman and President Isidro A. Consunji said.

Including nonrecurring gains, fourth-quarter net income rose 152% to P4.9 billion. For the full year, net income without one-off items grew 214% to P18.4 billion.

The diversified engineering conglomerate recognized a non-recurring income of P1 billion from deferred tax re-measurement arising from Republic Act No. 11534, or the Corporate Recovery and Tax Incentives for Enterprises Act.

In 2020, it recorded a nonrecurring loss of P708 million largely from sales cancellations for a real estate project.

Last year, Semirara Mining and Power Corp. (SMPC) and DMCI Project Developers, Inc. (DMCI Homes) accounted for 79% of core net income for the period.

Of DMCI Holdings’ subsidiaries, SMPC contributed P9.2 billion, a 360% upswing from P2 billion previously, following an increase in coal sales, average coal selling prices, and a hike in the average electricity selling prices.

Net income contributions from DMCI Homes more than doubled with a 127% growth to P4.4 billion from P1.9 billion on higher revenue recognition from accelerated construction accomplishments.

DMCI Mining Corp. recorded a 150% boost in its contributions to P1.2 billion from P483 million due to record-high shipments of nearly 2 million wet metric tons and a 40% increase in the average nickel selling prices.

DMCI Power Corp.’s share grew 8% to P580 million from P537 million due to the combined effect of higher electricity sales and lower fuel costs because of the commercial operation of its Masbate thermal plant.

D.M. Consunji, Inc. grew its contributions more than three times or 247% to P378 million from P109 million, owing to higher construction accomplishments and marginal pandemic-related expenses.

Meanwhile, coronavirus disease 2019 (COVID-19) restrictions translated to flat contributions from affiliate Maynilad Water Services, Inc. at P1.6 billion.

This year, DMCI Holdings said: “We expect intense volatility in the coal and nickel markets because of global supply disruptions and economic sanctions on Russia, the world’s third-largest and sixth-largest producer of nickel and coal, respectively.”

“While the escalation and prolonged aftermath of these sanctions will keep index prices elevated, possible policy interventions by China and Indonesia could create significant drawbacks for SMPC and DMCI Mining. Supply disruptions could also mean higher fuel expenses and raw materials costs for DMCI and DMCI Homes,” it added.

“Meanwhile, we expect our power and water businesses to benefit from the full economic reopening of the Philippines. Consumption should return to normal as companies and schools revert to on-site arrangements,” it added.

DMCI Holdings said its strong operating cash flow from higher commodity and electricity prices allowed it to pay out a total of P6.37 billion, or P0.48 per share, in special cash dividends last Nov. 10.

“This raised 2021 total cash dividends to P12.75 billion or P0.96 per share, which translates to a payout ratio of 194% — well above the company dividend policy of 25% of the previous year’s core net income and another all-time high for the group,” it added.

DMCI Holdings shares fell by 2.84% or 27 centavos to finish at P9.23 per share at the stock exchange on Tuesday. — Luisa Maria Jacinta C. Jocson

Petron swings to P6-B profit amid easier mobility

PETRON.COM

PETRON Corp. swung to profitability in 2021 with a reported net income of P6.14 billion from P11.4-billion net loss in 2020 on the back of higher sales volume due to more relaxed quarantine restrictions.

In a press release on Tuesday, Petron said it “continued to bounce back from the impact of the pandemic” after its sale grew by 5% to 82.24 million barrels last year.

“To say that we’ve come a long way since the start of this pandemic would be an understatement. We have recovered significant volumes in key market segments, and more importantly, we have returned profitability to our business,” Petron President and Chief Executive Officer Ramon S. Ang said.

The country’s largest oil refining and marketing company said its retail volume rose 6.4% during the implementation of granular lockdowns, while its industrial sales went up by 2%, pushed by the re-opening of the economy.

“Petron’s lubricant sales recorded the highest growth at 11%, highlighting the strong performance and presence of its locally produced engine oils and other lubricant products in the market,” the company said.

The increase in international prices also played a huge role in the firm’s economy, driving its consolidated revenue for last year to P438 billion, 53% higher than the P286 billion posted in 2020.

“Dubai crude prices breached the $80 per barrel level in the fourth quarter due to recovering oil demand and tighter supply. As a result, it averaged nearly $70 per barrel in 2021, 64% higher than 2020’s $42 per barrel. This is Dubai crude’s highest annual average in the past three years,” the company said.

The San Miguel Corp. unit is also looking forward to the completion of its 184-megawatts (MW) power plant in Limay, Bataan, which, it said, will reduce its refinery’s usage of fuel oil and will convert the feedstock into more fuel for sale.

In January, Petron said it would offer and issue $500-million worth of senior notes to repay debts and partially fund its P12-billion power plant project in Bataan.

Petron shares at the Philippine Stock Exchange on Tuesday went up by 14 centavos or 3.68% to close P3.94 apiece. — Marielle C. Lucenio

Manila Water unit acquires Davao water company

MANILA Water Philippine Ventures, Inc. (MWPV), a wholly owned subsidiary of Manila Water Co., Inc., acquired full ownership of Davao Del Norte Water Infrastructure Co., Inc. (Davao Water) after it bought the shares held by iWater, Inc.

“The acquisition is in line with the company’s strategic direction to maximize the business potential of existing ventures and take on opportunities for growth and expansion in Visayas and Mindanao,” Manila Water said in a disclosure on Tuesday.

Prior to the purchase, MWPV held 51% and iWater held a 49% equity interest in Davao Water.

Davao Water and the water district in Tagum, Davao del Norte partnered to implement a bulk water supply and purchase project, which is being carried out by their joint venture company, Tagum Water Co., Inc.

In 2015, Davao Water formalized a joint venture agreement with the Tagum City water district and formed Tagum Water Co., Inc.

The agreement covers the construction of a bulk water supply system, which includes an intake structure through riverbank filtration, a transmission pipeline, a 5,000-cubic meter water reservoir, and a water treatment plant with a capacity of 38 million liters per day.

The project began delivering water in May 2020 but is expected to fully complete its contract term in 2035.

It is estimated to benefit almost 300,000 people and will serve the water requirements of commercial and industrial establishments in Tagum City.

Manila Water brings water and wastewater services to the east concession zone of Metro Manila and Rizal province. Meanwhile, MWPV serves key metropolitan areas in Batangas, Laguna, Bulacan, Pampanga, Boracay, Iloilo, and Samar.

Manila Water Co., Inc. reported consolidated earnings of P3.7 billion for 2021, which was 18% lower than the previous year due to the pandemic.

In its unaudited report for 2021, revenues dropped 4% to P20.3 billion from P21.1 billion in 2020, due to lower billed volume across all segments in its east zone concession area and in several local subsidiaries, as well as lower customer consumption due to the pandemic.

At the stock exchange on Tuesday, Manila Water shares fell by P1.00 or 5.01% to P18.98 each. — Luisa Maria Jacinta C. Jocson

Art Fair Philippines goes hybrid

AR Art Trail featuring Leeroy New’s artwork Aparisyon (Apparition)

AFTER getting more than 276,000 website views and over 40,000 visitors in its first online edition in 2021, Art Fair Philippines returns as a hybrid event for the 10th edition, which runs from March 23 to April 1.

Since the Art Fair’s first year in 2013 and its last onsite show in 2020, a physical exhibition takes a new space at the Ayala Triangle Gardens and gallery venues, while online exhibitions and activities can be accessed at www.artfairphilippines.com.

“Coming from the pandemic, it’s about time that we move forward by encouraging people to attend activities in person. We thought it was ideal to give everyone a chance to go out and see more things,” said Art Fair Philippines co-founder Geraldine “Dindin” B. Araneta in an online press conference on March 1.

‘DELIBERATELY UGLY’
Art consultant Norman Crisologo and exhibition designer and theater director Ed Lacson will present art installations at the Ayala Tower One Fountain Area for the ArtFairPH/Projects section. The outdoor works will showcase the “baroque quality” of Philippine art, according to Mr. Crisologo.

Art Fair Philippines co-founder Lisa Ongpin-Periquet described the art installations as “the deliberately ugly, the seemingly spontaneous, the recklessly experimental with a unique Filipino sensibility.”

The other featured artists for the Projects section with special exhibitions around the space are the late Arô Soriano, social realist Nune Alvarado, Bjorn Calleja, Johanna Helmuth, Ryan Jara, Doktor Karayom, Tyang Karyel, Aze Ong, Wyndelle Remonde.

Joining the exhibition is Ilonggo artist Melvin Guirhem, this year’s recipient of the Karen H. Montinola Selection.

The inflatable sculpture of Russian artist Sasha Frolova will no longer be shown due to shipping difficulties brought about by the Russia-Ukraine crisis.

“Logistically it became difficult to ship Sasha’s artwork to Manila, after the invasion of Ukraine. We also felt that, perhaps, showing her work for the upcoming fair did not suit the times, when the war has been so devastating for the people of Ukraine,” said Ms. Lopa in a Viber message to BusinessWorld.

The ArtFairPH/Photo section also joins the physical exhibition. Curated by Neal Oshima, Michael Salientes, Mark Nicdao, and Gio Panlilio, the photography exhibition is titled Tattoos, Ternos and Couture, A Celebration of Philippine Fashion Photography.

According to Ms. Araneta, the exhibition hopes to present fashion photography as an art beyond its attachment to fashion brands.

“The curators were afraid that we’re seeing that it’s really been looked at as a service to the garment industry, but this is really a way to highlight the practice of photographers within the fashion industry,” she said.

Appearing on screen at a public amphitheater is a work by New York-based new media artist Jeremy Couillard for The ArtFairPH/Film section. The showcase includes his new film There Is No Up Or Down, Only Attraction (2022) which “explores curious creatures across galactic vistas, pixelated gaming maps, and streetscapes.” Mr. Couillard’s Fuzz Spiral series — a collection of three films based on the artist’s video game Fuzz Dungeon (2021) will also be featured.

The physical art fair will also exhibit works by the chosen artists for #ArtFairPH/Residencies: Derek Tumala for Manila Observatory, Hannah Nantes for Linangan Art Residency, Jao San Pedro for Emerging Islands, Alwin Reamillo for Orange Project, and Faye Abantao for Butanding Barrio. 

Launched in 2021, ArtFairPH/Residencies is open to Filipino artists across all disciplines. The application period for 2022 will be from March 23 to April 23. The chosen artists shall be announced by May 20.

Also returning to the art fair is “10 Days of Art,” a series of events around the Makati Central Business District in celebrating art. As in previous years, the public may visit art installations around Makati City.

This year’s three major public art exhibits will include an art installation by James Clar called I Can’t Tell You What I Don’t Know, Only That I Don’t Know at the plinth in front of the Ayala Museum; works by Juanito Torres and Norman Dreo, two solo exhibits titled Perspectives, will also be on view at the Greenbelt 5 Gallery. For schedules and updates, visit www.10daysofart.com.

DIGITAL MEETS PHYSICAL
New to the fair is an interactive augmented reality (AR) Art Trail at the Ayala Triangle Gardens, which uses the Daata AR app.

The AR Art Trail features Leeroy New’s artwork Aparisyon (Apparition), sculptures made from discarded plastic bottles; and visualized elements from author Eliza Victoria’s fantasy short story, Let Me Hold Your Hand.   

Forty-six exhibitors from the Philippines and abroad will showcase artworks in their respective galleries and through online viewing rooms at the fair’s website.

This year’s Philippine exhibitors include 1335Mabini, Altro Mondo Gallery, Art Cube Gallery, Art Elaan, Art For Space, Art Underground, Art Verite Gallery, Artery Art Space, Avellana Art Gallery, Boston Art Gallery, CANVAS, District Gallery, Eskinita Gallery, Galerie Roberto, Galerie Stephanie, Grounded Holistic Arts and Culture Studio, J Studio, Kaida Contemporary, León Gallery, Luzviminda, Modeka, MONO8 Gallery, Paseo Art Gallery, Pinaglabanan X, Qube Gallery, Salcedo Private View, Secret Fresh, Silverlens, Strange Fruit, The Crucible Gallery, Tin-aw, The Metro Gallery, White Walls Gallery, and Ysobel Art Gallery. 

Physical visits to the respective spaces of exhibitors can be planned with help from the fair website’s Gallery Hop section, which organizes galleries per location from Quezon City to Muntinlupa City.

This year’s art fair also goes beyond Metro Manila with the participation of art groups from the three main islands in the Regional Focus section. The exhibitors are: Ibagiw Art Fest x Gallery 2600 (Luzon), VIVA ExCon Dasun Bacolod x Orange Project (Visayas), Langgikit x Museo De Oro x Art Portal Gallery (Mindanao), and Lawig-diwa x Gallery Down South (Mindanao).

The six participating international galleries are: Art Agenda (Singapore/Jakarta), Gajah Gallery (Singapore/Yogyakarta), Mayoral (Paris/Barcelona), Yavuz Gallery (Singapore/Sydney), Gallery Kogure (Tokyo), and YOD Gallery (Osaka). NFT galleries A/terhen and Cyber Baat will also present exhibitions.

The exhibits by this year’s participants will be viewed at the Art Fair’s official website. Art Fair Philippines guests can also join the virtual gallery walkthrough scheduled on March 23 and 24.

WHAT’S ONLINE?
The ArtFairPH/Talks returns online this year with discussions presented in partnership with the Ateneo Art Gallery, Museum Foundation of the Philippines, and the Embassy of Spain.

This year’s ArtFairPH/Talks will include a series of discussions with Paco Barragán, an independent curator and arts writer based in Madrid, about art collecting and advice for artists. A discussion on the special photo exhibit Tattoos, Ternos and Couture, A Celebration of Philippine Fashion Photography will feature curators Messrs. Oshima, Michael Salientes, Mark Nicdao, and Gio Panlilio.

There will also be a panel discussion on NFTs — the main focus of the fair’s 2020 edition.

“The NFT talks were one of our best attended events last year,” said Art Fair Philippines co-founder Trickie Lopa.  “We were lucky because we discussed it and we put it out at the right time. It’s part of the art conversation now that there’s a very strong crypto art community here.”

Art Fair Philippines 2022 also continues to develop ArtFairPH/Open Studios. For this edition, Art Fair Philippines has collaborated with J Studio and ceramicist Pablo Capati to showcase a three-part series of pottery demos entitled Conversations on Clay with Jezzel Wee, Marco Rosario, Ella Mendoza, Krista Nogueras, Jon Pettyjohn, and Joey de Castro.

Other activities include virtual art tours. In the lineup for ArtFairPH/Tours is Baguio Artists Studio Visits: Part 2, a continuation of last year’s video documentation of visits to artists’ studios by Nona Garcia, Abbie Lara and Kawayan de Guia. Meanwhile, visual artists Plet Bolipata and Elmer Borlongan will take fair visitors on a virtual tour of their new studio called the Bolipata and Borlongan Talyer Video Tour.

“Grappling with whether we can move or not outdoors was one of the things that we had to contend with,” Ms. Araneta said. “Organizing for an online event also has its share of challenges. I think we worked with a good team. We subjected the site to several tests to make sure that everything will go well.”

Visiting hours are from 10 a.m. to 10 p.m. For more information on this year’s program and schedule of activities, visit the Art Fair Philippines website www.artfairphilippines.com and follow Art Fair Philippines on Instagram (@artfairph) and Facebook (www.facebook.com/artfairph). — Michelle Anne P. Soliman

Slow recovery seen for consumer goods industry

THE country’s fast moving consumer goods (FMCG) industry is projected to have a slow return to pre-pandemic levels, according to data and consulting company Kantar.

Kantar said in a statement on Tuesday that the country’s FMCG industry declined 4% year on year during the first nine months of 2021.

“Total beverages only saw a 1% growth, while dairy experienced a -11% growth in year-to-date September 2021 compared to the same period the year before. Moreover, breakfast categories like total coffee, coffee creamer, cereal and oatmeal further declined in the last two years since the pandemic started,” Kantar said.

“Filipinos instead turned to easier or more convenient ways of cooking via bouillons, instant noodles, cooking oil, seasonings and sauces. Healthier beverages such as cultured milk, family and adult milk, and energy drinks also showed stable growth locally,” it added.

According to Lourdes Deocareza-Lozano, Kantar Philippines Worldpanel Division new business director, local FMCG companies should consider the changes to consumer behavior following the coronavirus disease 2019 (COVID-19) pandemic in order to boost the industry.

“Our data reveal that major markets around the world are slowly showing signs of pre-pandemic times. While restrictions are being lifted in many countries, including the Philippines, FMCG companies, including our small and medium enterprises, must pay attention to behaviors that consumers have developed since the pandemic and capitalize on these in order to sustain the momentum,” Ms. Lozano said.

In comparison, Kantar said FMCG growth slowed to 0.8% in countries such as the United Kingdom, France, Spain, mainland China, Indonesia, Brazil, and Mexico from January to September last year.

“Globally, food categories under breakfast and lunch benefit most from the shift to a work-from-home setup, especially during the first nine months of 2021. Beverages (2.5%) and dairy (1.8%) such as milk, flavored milk, coffee, ready-to-drink tea, juices and carbonated soft drinks saw steady growth across the seven major markets covered by Kantar’s recent study,” it said.

“In addition, the return of face-to-face socializing in other parts of the globe may be having a positive impact on the health and beauty category with a 1.8% increase in consumer spend. This covers makeup, sun protection, and fragrances,” it added.

Meanwhile, Kantar said 1.8 million Filipino homes purchased in-home FMCG items online at least once last year.

It added that products usually bought via online channels include bar bath soap, shampoo, laundry powder, lotion, baby diaper, and frozen or chilled meat.

“During the height of quarantine restrictions, the Philippines shared the same upward trend for e-commerce activity as the other countries. From September 2019 to September 2021, the total online FMCG penetration increased from 5% to 7.2%. This was even higher in the National Capital Region (7.8% to 9.9%), North Luzon (5.6% to 8.5%), and South Luzon (6% to 9.4%),” Kantar said.

However, Ms. Lozano said e-commerce still plays a small part in the overall growth of the local FMCG industry, adding that there is still room for growth.

“E-commerce is here but there’s still room to increase its share of the FMCG market in the country. Companies that are able to optimize traditional, modern and online space to retain customers and attract new ones can help drive the sector’s growth back to pre-pandemic numbers,” Ms. Lozano said. — Revin Mikhael D. Ochave

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