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Aboitiz group’s net income up 38% in Q3

PHILSTAR

ABOITIZ Equity Ventures, Inc.’s (AEV) net income increased by 38% to P6.1 billion in the third quarter on the back of the higher earnings of its subsidiary Aboitiz Power Corp..

AEV said in a disclosure to the stock exchange on Tuesday that it recognized nonrecurring gains of P252 million in the period, up from P16 million a year ago, from the revaluation of its dollar-denominated assets.

“Without these one-off gains, the company’s core net income for the third quarter of 2021 was P5.8 billion, a 33% increase year on year,” it said.

Its consolidated earnings before interest, tax, depreciation and amortization (EBITDA) was at P16.7 billion, 5% higher from a year ago.

For the first nine months, AEV’s net income surged 135% to P19.5 billion. It recognized nonrecurring gains of P83 million in the period, up against P5 million the year prior, due to the revaluation of its dollar-denominated assets.

AEV said without these one-off gains, AEV’s core net income for January to September 2021 was P19.5 billion, up 133% year on year, while its consolidated EBITDA rose 28% of P49.5 billion.

“As we approach the end of 2021, we see the light at the end of the tunnel growing brighter in terms of the pandemic, and the Aboitiz Group’s performance trajectory continues to substantially improve throughout the current health crisis, posting figures that are again much higher than last year’s,” Aboitiz Group President and Chief Executive Officer Sabin M. Aboitiz said.

Among its business units, AboitizPower made up 58% of the total income contributions in the first nine months of the year, followed by financial services at 26%, food at 7%, infrastructure at 6%, and real estate at 3%.

In a separate disclosure on Tuesday, AboitizPower reported a consolidated net income of P5.6 billion in the third quarter, 70% higher than the P3.3 billion it posted in the same period in 2020.

It said it recognized nonrecurring losses of P41 million in the quarter against P305 million last year.

“Without these one-off losses, core net income for the third quarter of 2021 was P5.6 billion, 89% higher year on year. This was primarily due to commissioning revenue from the company’s new facility, GNPower Dinginin Ltd. Co. Unit 1, higher water inflow for AboitizPower’s hydro plants, higher availability of the Therma Luzon, Inc., Therma South, Inc. and Therma Visayas, Inc. facilities, and higher WESM (Wholesale Electricity Spot Market) dispatch in compliance with the must offer rule,” AboitizPower said.

For the first nine months of the year, AboitizPower posted a 124% increase in its net profit to P15.7 billion.

The company recognized nonrecurring losses of P36 million, lower than P528 million previously, due to net foreign exchange gains on the revaluation of dollar-denominated liabilities.

“Energy demand is continuously picking up as the country recovers from the pandemic. We look forward to the commercial operations of GNPD Unit 1 by end-November this year. This will deliver the much-needed energy into the grid to meet the country’s growing demand. Unit 2 is expected to be synchronized by Q1 2022,” AboitizPower President and Chief Executive Officer Emmanuel V. Rubio said.

“We are also excited about our pipeline of projects, which are mainly renewables and already in various stages of development. In addition to these new projects, our baseload plants have been performing well above benchmark targets for availability and reliability. This is to ensure that while we are aggressively pursuing renewables, we continue to serve the Philippines’ baseload requirements. We remain committed to balancing the reliability, cost-efficiency, and sustainability of our country’s energy system,” Mr. Rubio added.

Meanwhile, UnionBank of the Philippines, Inc. contributed P5.4 billion to AEV’s net income in the first nine months, 26% higher year on year “due to strong trading gains in the first half of the year, higher foreign exchange income, and higher fees and commissions.”

For food, AEV’s non-listed subsidiaries Pilmico Foods Corp., Pilmico Animal Nutrition Corp., and Pilmico International Pte. Ltd. contributed P1.5 billion, 54% higher year on year.

Meanwhile, for infrastructure, Republic Cement and Building Materials, Inc. contributed P1.4 billion to the total income of AEV in the period, 247% higher from the prior year due to higher demand for residential and infrastructure segments and the deferred tax liabilities of infrastructure under the Corporate Recovery and Tax Incentives for Enterprises law.

For real estate, Aboitiz Land, Inc. and its subsidiaries’ income contribution was at P2.9 billion in the first nine months, up by 34% from last year.

AEV shares went up by 2.69% or P1.30 to close at P49.70 apiece on Tuesday, while AboitizPower gained 0.93% or 0.3 centavos to finish at P32.45 each. — BADA

Back pain to bedridden

UNSPLASH

By Brontë H. Lacsamana

WHEN FREQUENT and persistent back pain greatly reduces one’s mobility, doesn’t improve with rest, and disturbs sleep, a chronic illness called axial spondyloarthritis (AxSpA) could be the culprit. 

“If detected late, there is really deformity and it’s debilitating. It impacts patients’ most productive years,” said Dr. Evan Glenn S. Vista, a rheumatologist at St. Luke’s Medical Center, explaining the effects of the inflammatory disease that involves the spine and the joints that connect the spine to the pelvis. 

“Even if it does not equate to the number of Filipinos with, say, hypertension or diabetes, this subset of patients in the population will be able to contribute to society if their AxSpA is controlled properly,” he added at a recent webinar on bones and joints.  

There are two types of AxSpA: non-radiographic (nr-axSpA) and radiographic, also known as ankylosing spondylitis (AS). The biggest difference between the two is that nr-axSpA doesn’t show up as spinal damage on a scan (such as an X-ray or magnetic resonance imaging) while AS does.  

The lack of visible inflammation on an X-ray can lead to a delay in diagnosis, which can be done by a primary care physician or, better still, by a rheumatologist, Dr. Vista said.  

Based on the International Map of Axial Spondyloarthritis (IMAS) online survey conducted in 2021, the average delay in diagnosis runs over seven years, with 81% of patients losing spinal mobility within the first 10 years of the disease.  

“The age of onset is mid-20s, normally the most productive time of life. Late diagnosis and inadequate treatment have potential socioeconomic consequences,” he added.  

SELF WORTH, MENTAL HEALTH
The Axial Spondyloarthritis Association of the Philippines (ASAPh), the Philippine Rheumatology Association (PRA), and pharmaceutical company Novartis renewed their partnerships to strengthen public knowledge of AxSpA and its early diagnosis and treatment.  

Got UR Back, a campaign headed by ASAPh, invites AxSpA patients to share their experiences of the condition for the medical community in the Philippines to listen to and act on. ASAPh has also encouraged patients to take the ongoing IMAS online survey, a global case study that seeks to shed light on the patient experience.  

“There’s currently no government program for AxSpA,” said Clark Ferrer, President of ASAPh, who also suffers from the disease. “Our vision is to have a forum with the government, so we can have a healthcare policy to provide for Filipinos with AxSpA.”  

He shared his own 21-year journey, from being bedridden due to frequent back pain to the decaying of his self-worth and mental health.  

Dr. Juan Javier Lichauco, president of the PRA, acknowledged that AxSpA patients today have a better support system and newer treatment options: “The presence and development of biologics really changed the quality of life of our patients. They have the ability to address symptoms of pain now, and these drugs have the ability to stop the progression of disease.”  

PRA also offers Clarrio, a mobile application that aims to help individuals suffering from chronic low back pain. Available for free on the App Store and Google Play, it allows users to categorize the level and nature of their pain and gives them tools to monitor and manage it. The app also connects to the PRA website, which lists over 200 rheumatologists and links to telemedicine services. 

SM Prime sets rate for P10-billion seven-year bond offer at 5.0994%

SM PRIME Holdings, Inc. has priced its its seven-year P10-billion retail bond Series O, which is the third tranche of its P100-billion shelf-registered fixed-rate papers, at 5.0994% per annum, it said on Tuesday.

The offer comprises a P5-billion principal offer, with an oversubscription option of up to P5 billion.

The bonds will be offered until Nov. 8, after receiving the permit to sell from the Securities and Exchange Commission, while its issuance is slated for Nov. 15.

“The proceeds of this latest retail bond will be used to pursue expansion opportunities across business segments, which will help sustain the company’s growth,” SM Prime Chief Finance Officer John Nai Peng C. Ong said in a statement on Tuesday. 

SM Prime assigned BDO Capital & Investment Corp. and China Bank Capital Corp. as the bonds’ joint issue managers. They will be joined by BPI Capital Corp., East West Banking Corp., First Metro Investment Corp., SB Capital Investment Corp., and RCBC Capital Investment Corp. as joint lead underwriters.

SM Prime’s seven-year Series O bond received a PRS Aaa rating from the Philippine Rating Services Corp., the highest issued by the debt watcher, which is “given to long-term debt securities with the smallest degree of investment risk.”

The rating also signifies the company’s capability to meet its financial obligations.

The P10-billion Series O bonds are part of the company’s P100-billion shelf-registered fixed-rate bonds.

The first tranche of the papers, which was made up of P15-billion fixed-rate bonds with five-year (4.8643% per annum) and seven-year (5.0583% per annum) terms, was issued in March last year.

Meanwhile, the second tranche with P10-billion fixed-rate bonds with terms of two-and-a-half years (2.4565% per annum) and five-year (3.8547% per annum) was issued in February.

Shares of SM Prime at the stock market improved by 1.21% or 40 centavos to close at P33.50 apiece on Tuesday. — K.C.G. Valmonte

T-bill rates inch up ahead of inflation, Fed meet

BW FILE PHOTO

THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Tuesday even as rates inched up ahead of the release of October inflation data and the US central bank’s policy review.

The Bureau of the Treasury (BTr) raised P15 billion as planned via the T-bills it auctioned off on Tuesday as the offer attracted P41.78 billion in bids, making it almost 2.8 times oversubscribed.

The demand seen on Tuesday was also bigger than the P34.721 billion in tenders recorded the previous week.

Broken down, the BTr borrowed P5 billion as planned via the 91-day T-bills from P13.08 billion in tenders. The three-month debt paper fetched an average rate of 1.13%, 1.1 basis points (bps) higher than the 1.119% quoted in the previous week’s auction.

It also raised the programmed P5 billion from the 182-day T-bills as the tenor attracted bids worth P14.94 billion. The average yield on the six-month debt stood at 1.395%, up 0.8 bp from 1.387% last week.

Lastly, the Treasury made a full P5-billion award of the 364-day securities it offered on Tuesday as demand reached P13.76 billion. The one-year paper fetched an average rate of 1.613%, up by 0.7 bp from 1.606% previously.

At the secondary market on Tuesday, the three-month, six-month and one-year T-bills were quoted at 1.2131%, 1.4488% and 1.6228%, respectively, before the auction, based on the PHL Bloomberg Valuation Service reference rates published on the Philippine Dealing System’s website.

National Treasurer Rosalia V. de Leon said in a Viber message to reporters after the auction that average rates moved up by around 1 bp or less as investors were waiting for the release of October inflation data as well as the US Federal Reserve’s policy review this week.

A bond trader said in a Viber message that the uptick in T-bill rates seen on Tuesday was not significant but shows the market’s desire for higher yields ahead of Friday’s consumer price index (CPI) release.

Inflation likely quickened in October due to a continued rise in pump prices and a spike in food costs due to a severe tropical storm, analysts said.

A BusinessWorld poll of 21 analysts yielded a median estimate of 4.9% for the October CPI, which matches the midpoint of the 4.5-5.3% forecast given by the Bangko Sentral ng Pilipinas (BSP).

If realized, headline inflation will exceed the 2-4% BSP annual target range for the third straight month. This will also be faster than the 4.8% seen in September and the 2.5% a year earlier.

The Philippine Statistics Authority will release October inflation data on Nov. 5.

Inflation has breached the BSP target since January, except in July when it was at 4%.

Meanwhile, the Fed is holding a policy meeting on Nov. 2-3, where it is expected to approve plans to scale back its $120-billion monthly bond-buying program.

On Wednesday, the Treasury will offer P35 billion in reissued five-year Treasury bonds (T-bonds) with a remaining life of four years and five months.

The Treasury plans to raise P200 billion from the domestic market in November: P60 billion via weekly T-bill auctions and P140 billion from weekly offers of T-bonds.

The government wants to borrow P3 trillion from local and external sources this year to help fund a budget deficit seen to hit 9.3% of gross domestic product. — Jenina P. Ibañez

Novavax COVID-19 vaccine gets first authorization; expects more within weeks, CEO says

Image via Jernej Furman/Flickr/CC BY 2.0

NOVAVAX, INC. expects regulators in India, the Philippines and elsewhere to make a decision on its coronavirus disease 2019 (COVID-19) vaccine within “weeks,” its chief executive told Reuters, after the shot on Monday received its first emergency use authorization (EUA) from Indonesia.  

Novavax shares were up about 13% after the company also said it had filed an application for emergency use of the vaccine to Canada and the European Medicines Agency.  

For Indonesia, the shot will be manufactured by the world’s largest vaccine manufacturer, Serum Institute in India (SII), and sold under the Indian company’s brand name, Covovax. Novavax said initial shipments into Indonesia are expected to begin imminently.  

The World Health Organization (WHO) is also reviewing Novavax’s regulatory filing and the US drugmaker expects that review to be resolved in the coming weeks, Chief Executive Stanley Erck told Reuters in a phone interview on Monday.  

A green light from the WHO would set the stage for Novavax to begin shipping doses to the COVAX program that supplies shots to low-income countries. Novavax and SII have together committed to provide more than 1.1 billion doses to COVAX, which is co-led by the WHO.  

“I think we’ll get some doses to COVAX this year,” Mr. Erck said. “But I think [Novavax is] going to really start being able to ship large quantity to COVAX in the first quarter” of 2022.  

Mr. Erck said Novavax has resolved all of its manufacturing challenges and does not expect regulators to have any further concerns about its production processes.  

He said Novavax is “in dialogue with the US FDA and … we expect a full submission within the next several weeks.”  

Novavax had delayed filing for US approval, and Politico reported last month that the company faced production and quality problems.  

SII is authorized to make the Novavax vaccine and the US company said it will apply for regulatory authorization for other facilities, such as its plant in the Czech Republic, in the coming weeks.  

Indonesia is slated to receive 20 million doses of the protein-based vaccine this year, according to the government.  

Penny Lukito, chief of the National Agency for Drug and Food Control of Indonesia, did not immediately respond to a Reuters request for comment.  

Novavax has so far applied for EUA in various countries, including the UK, Australia, India and the Philippines.  

“It will be weeks, not months, for them to review” Novavax’s regulatory submissions and potentially clear the shot for use, Mr. Erck said.  

The company, along with Japanese partner Takeda Pharmaceutical Co., said on Friday it was preparing to seek regulatory approval for a rollout in Japan early next year.  

The Novavax shot was shown to be more than 90% effective, including against a variety of concerning variants of the coronavirus in a large, late-stage US-based trial. — Carl O’Donnell and Dania Nadeem/Reuters  

A pas des deux between a lens and canvas

EDNA VIDA and Nonoy Froilan photographs and paintings presented in ‘Of Art and Wine: Duets’ at Conrad Manila

DANCERS and partners Edna Vida and Nonoy Froilan had been residing in a condominium with a good view of the Makati skyline since 2009. But it was not until the COVID-19 (coronavirus disease 2019) lockdown last year that Mr. Froilan found inspiration from its view of the outdoors. Ms. Vida, in turn, was inspired by the solitude of staying indoors. It was then that Mr. Froilan picked up a camera to shoot photographs of clouds from his window, while Ms. Vida started painting images of dance movements. They took up these new pursuits separately, with no exchange of ideas.

The photographs and paintings were eventually matched in pairs and are now presented in “Of Art and Wine: Duets” at Conrad Manila’s Gallery C. It is the couple’s first art exhibition together.

Ms. Vida and Mr. Froilan have worked together for years as principal dancers of Ballet Philippines, co-choreographers and re-stagers in many dance productions, actors in several plays at the Cultural Center of the Philippines (CCP), and collaborators in performance art projects.

“This art exhibit has been an exciting and challenging project for me to curate,” said Nestor O. Jardin during last week’s onsite and online launch. “Marrying two different visual art forms — painting and photography — was difficult enough, but working on two diverse subject matters such as dance and clouds proved to be another matter,” said Mr. Jardin, the former president of Ballet Philippines and the CCP, and a longtime friend of the couple.

“It took me several days to pour over hundreds of Edna’s paintings, and hundreds of Nonoy’s photographs, trying to see points of similarities and confluence in their artwork. But from the perspective of style and form, I finally saw some points of convergence [from which] was born the dramatic curatorial idea for ‘Duets’,” Mr. Jardin added.

INSPIRATION IN LOCKDOWN
Mr. Froilan said that while at home during the lockdown, he appreciated the view of the skyline from the windows and noted what time boats would pass by — a routine he barely noticed for 11 years prior to lockdown due to his busy schedule. This is when Mr. Froilan picked up the camera to take photographs of cloud formations.

“It has the kind of surrounding like a dancer performing,” Mr. Froilan said of his chosen subject. “Whenever I take video and photographs, the best photos are where you are at the moment.”

Ms. Vida found solitude conducive to painting and most of the time finishing two works in a day during the long period indoors. Rekindling her painting practice, which she started in 1989, Ms. Vida found herself dancing with ink and on canvas.

“[Being] imprisoned in a state of obscurity is the best time to be an artist. And this pandemic’s proverbial box of rebirth and transformation, made us rekindle the child in us.” Ms. Vida said.

“The lockdowns changed me and Nonoy a lot. We were suddenly at home 24/7, and we went into our own space to do our own projects. Nonoy with this camera. And I on canvas,” she said.

A SEPARATE DUET
Despite living under one roof, the couple worked separately and had no communication about each other’s output. It was only when the works were to be showcased that Mr. Jardin matched them and classified them into thematically.

The pairs, which Mr. Jardin described as “25 pas des deux” are classified using words of emotions and perceptions, movement and stillness, energy and tranquility. The pairs include Solace, referring to a dance centered on being alone; Quarantine, referring to a period of isolation; Boxed In referring to the shapes of the figures in both the photograph and painting.

Since dancing ballet has its strict rules and techniques, Ms. Vida found painting a more liberal art form.

“I get my inspiration from the fact that in the visual arts, everything is free; not like in dance in ballet… Ballet, particularly was so full of rules. It was very strict, and we had to follow a particular kind of technique to perform well on stage. But with painting, there are no rules — at least for me,” Ms. Vida said.

She also added that she can freely chose colors and make mistakes. “And sometimes, mistakes are the ones that are beautiful.”

As an artist, the pursuit of perfection comes with uncertainties.

“I have been performing at the Cultural Center of the Philippines for two decades. Every time we step on that stage, it was like walking on a tightrope. There were always doubts and uncertainties in our dancing,” Mr. Froilan admitted. “We have honed our dance skills for years, and even if we made mistakes, we never show[ed it]. We will not reach that perfection in art, but still we did [dance].

“I got that feeling when I was starting to do [photography again], but after a while, I got used to my camera, and the camera likes me. Because sometimes I would say, ‘The camera takes better photos than I’,” he added.

“But anyway, a good yardstick for success is whether people like our work well enough to hang it on the wall,” he said.

“Of Art and Wine: Duets” by Edna Vida and Nonoy Froilan is on view until Jan. 9, 2022. The artworks can be bought separately and in pairs. To view the online brochure, visit https://www.yumpu.com/en/document/read/65894297/of-art-and-wine-duets. For inquiries on the artworks, call 8833-9999 or e-mail conradmanila@conradhotels.com.  Michelle Anne P. Soliman

UnionBank’s net profit climbs 26% in the first nine months

BW FILE PHOTO

UNIONBANK of the Philippines, Inc. recorded a higher net profit in the first nine months of the year as earnings from its core businesses improved and as its loan loss provisions declined.

The Aboitiz-led lender’s net profit increased 26% year on year to P10.71 billion in the first nine months of 2021, based on its filing with the local bourse on Tuesday. Its previous financial report showed its net income in the same period of 2020 stood at P8.482 billion.

This translated to a return on equity of 13.6% as of end-September.

The bank’s net interest income in the January to September period went up by 3% year on year to P22 billion on improved margins. Its net interest margin rose to 4.6% from 4.5% a year earlier.

“Lower funding costs coming from the robust growth of our CASA (current account, savings account) deposits supported our margin growth,” the bank said in a statement.

Interest expense stood at P4.763 billion as of September, down 41% from the P8.082 billion a year earlier.

Meanwhile, the lender’s non-interest income climbed 22% to P12.6 billion in the first nine months, backed by better trading gains, foreign exchange income, as well as fees and commissions.

UnionBank’s loans declined 4% year on year to P341.5 billion at end-September amid muted demand for corporate credit.

The bank’s nonperforming loan ratio was at 4.9% as of September, improving from the 5.1% posted at end-2020.

Its provisions for credit losses decreased by 45% to P4.122 billion in the period from P7.458 billion a year ago.

On the funding side, deposit liabilities stood at P517.371 billion as of September. CASA deposits grew by 26% year on year to P318.3 billion.

The bank’s assets stood at P767.76 billion in the same period, inching up by 1.28% from P758.02 billion a year earlier.

DIGITAL INITIATIVES
UnionBank said its registered users reached 3.6 million at end-September amid its digital onboarding initiatives. This was 2.4 times higher from a year earlier.

The lender added that they onboarded 180,000 micro-, small- and medium-sized enterprises and channel partners across their platforms in the same period, increasing by 46% from a year earlier.

In July, UnionBank secured a digital bank license from the Bangko Sentral ng Pilipinas. It is set to launch Union Digital Bank by 2022.

UnionBank President and Chief Executive Officer Edwin R. Bautista expressed optimism for the bank’s performance as the economic situation improves.

“With our current momentum and the reopening of the economy, we are confident that the worst of the pandemic is behind us. We will be entering 2022 with a solid base from where we can resume our pre-pandemic growth trajectories,” Mr. Bautista was quoted as saying.

UnionBank shares closed at P90.60 apiece on Tuesday, up by five centavos or 0.06% from its previous finish. — L.W.T. Noble

Converge president, co-founder is part of Forbes Asia’s Power Businesswomen list for this year

CONVERGE ICT Solutions, Inc. Co-Founder and President Maria Grace Y. Uy is part of Forbes Asia’s 2021 Power Businesswomen list, which recognizes 20 outstanding female business leaders in the Asia-Pacific region.

Announced on Tuesday, Forbes Asia recognized Ms. Uy for her role in growing Converge “into one of the largest fixed broadband operators in the Philippines.”

“I have always lived with the principle that to be successful, you need to put in everything you’ve got and always work to do it better,” Ms. Uy told Forbes in a statement.

“And we still believe that we have just started,” she added.

Ms. Uy is a certified public accountant. She held senior executive positions in several companies, including IBM Philippines, prior to Converge, according to Forbes.

The businesswomen honored this year were selected for their accomplishments in managing either a business with sizable revenues or a startup valued at over $100 million, Forbes said in an e-mailed statement.

This year’s list recognizes businesswomen “who managed to adapt and thrive in industries including technology, healthcare, banking and manufacturing,” said Rana Wehbe Watson, editor of the 2021 Asia’s Power Businesswomen list. 

“They are leading the way as the world struggles with the post-COVID reality,” she added.

Forbes noted that Ms. Uy led the negotiations for a $250-million investment from Warburg Pincus, a global growth investor, in 2019, which was used for the expansion of Converge’s fiber network.

Last year, Ms. Uy and her husband, Converge Chief Executive Officer and Co-Founder Dennis Anthony H. Uy, raised $522 million in one of the Philippines’ “largest-ever” initial public offerings, Forbes said.

“Shares have since risen over 70%, pushing Converge’s market cap to 233 billion pesos ($4.6 billion),” it added.

Other businesswomen on the list include Thailand’s Wallapa Traisorat, president and chief executive officer of real estate company Asset World Corp.; Helen Wong, the first woman to helm the 89-year-old Oversea-Chinese Banking Corp.; South Korea’s Lee In-kyung who became a partner at MBK Partners (one of the largest homegrown buyout firms in Asia) last year; and Meena Ganesh who co-founded Portea Medical, India’s largest home healthcare company by revenue. — Arjay L. Balinbin

How AI is hijacking art history

ART historians have long used traditional X-rays, X-ray fluorescence or infrared imaging to better understand artists’ techniques. — METROPOLITAN MUSEUM OF ART/WIKIMEDIA COMMONS
ART historians have long used traditional X-rays, X-ray fluorescence or infrared imaging to better understand artists’ techniques. — METROPOLITAN MUSEUM OF ART/WIKIMEDIA COMMONS

PEOPLE tend to rejoice in the disclosure of a secret.

Or, at the very least, media outlets have come to realize that news of “mysteries solved” and “hidden treasures revealed” generate traffic and clicks.

So I’m never surprised when I see AI-assisted revelations about famous masters’ works of art go viral.

Over the past year alone, I’ve come across articles highlighting how artificial intelligence (AI) recovered a “secret” painting of a “lost lover” of Italian painter Modigliani, “brought to life” a “hidden Picasso nude,” “resurrected” Austrian painter Gustav Klimt’s destroyed works, and “restored” portions of Rembrandt’s 1642 painting The Night Watch. The list goes on.

Hear from them.

As an art historian, I’ve become increasingly concerned about the coverage and circulation of these projects.

They have not, in actuality, revealed one secret or solved a single mystery.

What they have done is generate feel-good stories about AI.

ARE WE ACTUALLY LEARNING ANYTHING NEW?
Take the reports about the Modigliani and Picasso paintings.

These were projects executed by the same company, Oxia Palus, which was founded not by art historians but by doctoral students in machine learning.

In both cases, Oxia Palus relied upon traditional X-rays, X-ray fluorescence, and infrared imaging that had already been carried out and published years prior — work that had revealed preliminary paintings beneath the visible layer on the artists’ canvases.

The company edited these X-rays and reconstituted them as new works of art by applying a technique called “neural style transfer.” This is a sophisticated-sounding term for a program that breaks works of art down into extremely small units, extrapolates a style from them and then promises to recreate images of other content in that same style.

Essentially, Oxia Palus stitches new works out of what the machine can learn from the existing X-ray images and other paintings by the same artist.

But outside of flexing the prowess of AI, is there any value — artistically, historically — to what the company is doing?

These recreations don’t teach us anything we didn’t know about the artists and their methods.

Artists paint over their works all the time. It’s so common that art historians and conservators have a word for it: pentimento. None of these earlier compositions was an Easter egg deposited in the painting for later researchers to discover. The original X-ray images were certainly valuable in that they offered insights into artists’ working methods.

But to me, what these programs are doing isn’t exactly newsworthy from the perspective of art history.

THE HUMANITIES ON LIFE SUPPORT
So, when I do see these reproductions attracting media attention, it strikes me as soft diplomacy for AI, showcasing a “cultured” application of the technology at a time when skepticism of its deceptions, biases and abuses is on the rise.

When AI gets attention for recovering lost works of art, it makes the technology sound a lot less scary than when it garners headlines for creating deep fakes that falsify politicians’ speech or for using facial recognition for authoritarian surveillance.

These studies and projects also seem to promote the idea that computer scientists are more adept at historical research than art historians.

For years, university humanities departments have been gradually squeezed of funding, with more money funneled into the sciences. With their claims to objectivity and empirically provable results, the sciences tend to command greater respect from funding bodies and the public, which offers an incentive to scholars in the humanities to adopt computational methods.

Art historian Claire Bishop criticized this development, noting that when computer science becomes integrated in the humanities, “theoretical problems are steamrollered flat by the weight of data,” which generates deeply simplistic results.

At their core, art historians study the ways in which art can offer insights into how people once saw the world. They explore how works of art shaped the worlds in which they were made and would go on to influence future generations.

A computer algorithm cannot perform these functions.

However, some scholars and institutions have allowed themselves to be subsumed by the sciences, adopting their methods and partnering with them in sponsored projects.

Literary critic Barbara Herrnstein Smith has warned about ceding too much ground to the sciences. In her view, the sciences and the humanities are not the polar opposites they are often publicly portrayed to be. But this portrayal has been to the benefit of the sciences, prized for their supposed clarity and utility over the humanities’ alleged obscurity and uselessness. At the same time, she has suggested that hybrid fields of study that fuse the arts with the sciences may lead to breakthroughs that wouldn’t have been possible had each existed as a siloed discipline.

I’m skeptical. Not because I doubt the utility of expanding and diversifying our toolbox; to be sure, some scholars working in the digital humanities have taken up computational methods with subtlety and historical awareness to add nuance to or overturn entrenched narratives.

But my lingering suspicion emerges from an awareness of how public support for the sciences and disparagement of the humanities means that, in the endeavor to gain funding and acceptance, the humanities will lose what makes them vital. The field’s sensitivity to historical particularity and cultural difference makes the application of the same code to widely diverse artifacts utterly illogical.

How absurd to think that black-and-white photographs from 100 years ago would produce colors in the same way that digital photographs do now. And yet, this is exactly what AI-assisted colorization does.

That particular example might sound like a small qualm, sure. But this effort to “bring events back to life” routinely mistakes representations for reality. Adding color does not show things as they were but recreates what is already a recreation — a photograph — in our own image, now with computer science’s seal of approval.

ART AS A TOY IN THE SANDBOX OF SCIENTISTS
Near the conclusion of a recent paper devoted to the use of AI to disentangle X-ray images of Jan and Hubert van Eyck’s Ghent Altarpiece, the mathematicians and engineers who authored it refer to their method as relying upon “choosing ‘the best of all possible worlds’ (borrowing Voltaire’s words) by taking the first output of two separate runs, differing only in the ordering of the inputs.”

Perhaps if they had familiarized themselves with the humanities more they would know how satirically those words were meant when Voltaire used them to mock a philosopher who believed that rampant suffering and injustice were all part of God’s plan — that the world as it was represented the best we could hope for.

Maybe this “gotcha” is cheap. But it illustrates the problem of art and history becoming toys in the sandboxes of scientists with no training in the humanities.

If nothing else, my hope is that journalists and critics who report on these developments will cast a more skeptical eye on them and alter their framing.

In my view, rather than lionizing these studies as heroic achievements, those responsible for conveying their results to the public should see them as opportunities to question what the computational sciences are doing when they appropriate the study of art. And they should ask whether any of this is for the good of anyone or anything but AI, its most zealous proponents, and those who profit from it.

 

Sonja Drimmer is an Associate Professor of Medieval Art, University of Massachusetts Amherst

Early detection ensures higher survival rate in breast cancer

UNSPLASH

By Patricia B. Mirasol 

THE more Filipinas perform early breast cancer detection, the higher the survival rate of the disease in the country will be.  

At age 20, females are advised to learn and perform a breast self-exam (BSE) monthly. At age 30, an annual clinical breast exam by a doctor or a trained healthcare worker is recommended in conjunction with the monthly BSEs. At age 40, a low-dose X-ray of the breast called a mammogram is ideally added to the early detection equation.  

“I can’t stress enough the importance of having a mammogram,” said Dr. Leya Suzette Evangelista- Espino, a radiologist from The Medical City, in an Oct. 30 webinar organized by the hospital. “A mammogram has the advantage of detecting breast cancer at the earliest stages. Even lumps that can’t be palpated can be detected in a mammogram,” she added in the vernacular.   

The general symptoms of breast cancer are a lump or thickening of the breast; an alteration in the appearance of the breast; a dimpling in the skin of the breast, including the area surrounding the nipple; and/or a discharge in the nipple.  

A survey published this October by Milieu Insight, a Singapore-based consumer data and analytics company, found that while 81% of Filipinas say they are familiar with breast cancer symptoms, less than half (or 45%) aged 30 years and above know the recommended frequency of a BSE. Only one-fifth (or 22%) of the same age group also know the recommended age for regular mammogram screening.   

The 10-year survival rate among Filipinas with breast cancer is 57%.  

Inasmuch as screening tests are an important tool for finding breast changes that could be cancer before physical symptoms develop, no one test is infallible.  

Menstruating women can have prominent fibroglandular breast tissue, and these dense areas of the breast make lesions harder to find in a mammogram, Dr. Espino told the webinar audience.   

“[For these cases], it is usually advised to also have a breast ultrasound,” she said, noting that the ancillary procedure can tell whether a breast lump that was seen in a mammogram is fluid-filled or a solid tumor.   

Dr. Espino added that a breast ultrasound is advisable for pregnant women as well, since it does not use radiation and is thus safe for the fetus.   

DIAGNOSTIC WORKUP
Breast masses develop for many reasons, and around 90% of these are not cancerous, according to the World Health Organization.  

Individuals with persistent abnormalities (or those that last more than a month) or patterns that suggest malignancy (such as calcium deposits called calcifications) may be advised to undergo further workups such as an ultrasound-guided needle biopsy of the breast. 

This procedure entails administration of local anesthesia and an incision of around .2–.3 cm to insert the said needle, said Dr. Lea Angela Pineda-Peralta, a breast surgeon from The Medical City.   

“We see the needle target the specific lump, and this avoids false negative results,” she said in the vernacular. The guided visualization also protects those with lumps close to the chest wall from having the needle prick an area outside of the lump, Dr. Pineda added. “We need to have the biopsy done so we can figure out how to help you.”  

 


How to perform a breast self-exam  

ICanServe Foundation, Inc., an early breast cancer detection advocacy group, outlines the steps to performing a breast self-exam: 

  1. Lie down with your back resting on a flat, comfortable surface. Raise your left arm and put a pillow or rolled towel below your left shoulder.   
  2. Use the three middle fingers of your right hand to feel for lumps, making sure they are pressed together. Use the convex of these three fingers together (not the fingertips) to feel for lumps.  
  3. Keep your fingers straight and press them together on your left breast.  
  4. Using vertical movements, begin from armpits and move fingers downward until below the breast. Move toward the middle and back up. Repeat through the chest and entire breast.   
  5. Feel under and around the nipple.  
  6. Repeat on your right breast using your left hand.  

Solar Philippines looking to hold IPO to fund 500-MW solar farm

SOLARPHILIPPINES.PH
SOLAR PHILIPPINES wants to go public to help fund a 500-megawatt solar farm in Nueva Ecija. — SOLARPHILIPPINES.PH

SOLAR PHILIPPINES plans to hold an initial public offering (IPO) to raise a minimum of P1.3 billion, which will partly fund the construction of its unit’s 500-megawatt (MW) solar farm in Peñaranda, Nueva Ecija.

“We aim to raise at least P1.3 billion to fund the equity for the construction of the project’s first 225 MW, with the possibility of raising more to advance the expansion of the project,” Solar Philippines Founder Leandro L. Leviste told BusinessWorld through the firm’s corporate communications division in an e-mail on Tuesday.

The planned facility will be a project of Solar Philippines Nueva Ecija Corp., which is wholly owned by Solar Philippines.

Once completed, the solar farm will become Southeast Asia’s largest solar project to date, the company said.

“We’ve decided to make Solar Philippines Nueva Ecija our group’s first venture into the public markets because this is the asset that we are proudest to showcase: a site where will rise the largest solar project in the Philippines, with potential for further expansion given its proximity to Manila,” said Mr. Leviste separately said in an e-mailed statement on Tuesday.

The IPO will allow the public to invest in renewable energy efforts, and expand such initiatives in the Philippines, he said, adding that they will disclose the timing of the offer once it is firmed up.

Solar Philippines seeks to list the offer under the stock exchange’s supplemental listing and disclosure requirements for renewable energy companies.

The guidelines give development-stage project firms a chance to list on the local bourse as long as they fulfill certain requirements, such as securing a valid and subsisting service contract from the Energy department.

Solar Philippines said its Nueva Ecija unit aims to begin construction work for its 500-MW project by end-2021. The facility will help augment the Luzon grid’s reserve capacity and avoid rotating outages in the area.

Once operational, the Peñaranda solar farm will account for half of Solar Philippines’ first 1 gigawatt target.

Last month, Solar Philippines announced the creation of a new business called “Solar Energy Zones, Inc.” which aims to develop areas conducive to hosting solar facilities for power firms.

The company has said it was in the middle of finalizing deals to develop 10,000 hectares of solar energy zones, which will be mainly situated near its existing power projects in Nueva Ecija, Batangas and Tarlac. — Angelica Y. Yang with inputs from Keren Concepcion G. Valmonte

NSSLAs book higher operating income in 1st half

BW FILE PHOTO

NONSTOCK SAVINGS and loan associations (NSSLAs) recorded a higher operating income in the first semester of the year as more loans were disbursed, the Bangko Sentral ng Pilipinas (BSP) said.

In its Report on Philippine Financial System for the First Semester of 2021, the BSP said the total operating income of NSSLAs increased 5.8% year on year to P14.2 billion from the P13.4 billion seen in the January to June period in 2020.

The NSSLA industry’s return on assets declined to 6.8% as of end-June from 8.8% a year earlier, while return on equity fell to 10.5% from 13.5%. This, as equity and asset growth outpaced the increase in its earnings.

The industry’s core earnings were mainly driven by interest from lending activities, which stood at P15.4 billion as of June, increasing by 6.4% from P14.5 billion a year earlier.

Total assets held by NSSLAs saw a muted growth of 1.4% to P270 billion as of end-June as more funds channeled to lending and investment activities and sourced from members’ capital and deposits.

The NSSLA industry’s total loan portfolio, net of allowance for credit losses, made up the largest share of its assets at 81%, which was equivalent to P218.8 billion, the BSP said in the report.

Meanwhile, their nonperforming loan ratio (NPL) and nonperforming asset (NPA) ratio increased to 7.7% and 6.4% as of end-June, respectively. NPL and NPA coverage ratios for the same period were at 119.2% and 118.5%, respectively.

“Loan quality has remained manageable in spite of uptick in non-performing loans. The increase in bad loans was matched with high loan-loss provisions,” the BSP said.

The BSP in April released Circular No. 1115 Series of 2021, which streamlined the duties, responsibilities and qualifications of members of NSSLAs’ board of trustees, officials, and employees.

“The BSP will continue working on other policy enhancements involving NSSLAs, including those related to well defined group and compensation regulations,” the central bank said. — L.W.T. Noble