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Caltex ‘Biyaheng Bakunado’ gives fuel discounts for the vaccinated until Sept. 21

Caltex, marketed by Chevron Philippines, Inc. (CPI), is again helping promote getting the COVID-19 vaccine. It once more offers fuel discounts to Filipino motorists already inoculated. “Caltex Biyaheng Bakunado,” which runs until Sept. 21, 2021 at participating Caltex stations, extends a discount of P3 per liter for Platinum and Silver with Techron, and P2 per liter for diesel with Techron D. Customers need to log in their details, present a COVID-19 vaccination card with at least one vaccine dose done, and a valid ID. Customers vaccinated on or before the promo duration are qualified for the discount.

“We continue to encourage more Filipinos to get vaccinated when they have the opportunity to do so in order to protect themselves and their loved ones from the disease,” said CPI Country Chairman Billy Liu. “We also remain committed to promoting health and safety among our employees and customers. This is why we are bringing back the Biyaheng Bakunado fuel discount promo for our motorists.”

Caltex Biyaheng Bakunado applies to fuel pumped into the customer’s vehicle fuel tank only. A maximum of 60 liters and two transactions will only be allowed per day. The promo cannot be availed of in conjunction with any of Caltex’s ongoing discount promos. Caltex previously rolled out the Biyaheng Bakunado promo from June 28 to July 18, 2021. For the list of participating stations, visit www.caltex.com/ph/BiyahengBakunado2.

PAL revival seen hinged on pandemic response

REUTERS

Analysts: Chapter 11 is ‘best option’ but airline’s finances, gov’t handling of virus are crucial

By Arjay L. Balinbin, Senior Reporter

THE recovery of Philippine Airlines, Inc. (PAL), which has filed for bankruptcy protection in the United States, depends heavily on the government’s management of the pandemic situation, analysts said.

“The nature of the airline industry malaise today is the same in the global community. Airlines have no alternatives but to comply with health protocols, quarantine requirements, and government regulations,” Avelino D.L. Zapanta, former PAL president and chief operating officer, said in an e-mail interview on Saturday.

His response came after PAL said in an e-mailed statement on Saturday that its bankruptcy protection filing in the US would allow it to “successfully restructure and reorganize its finances to navigate the COVID-19 (coronavirus disease 2019) crisis and emerge as a leaner and better-capitalized airline.”

In a telephone interview, transport expert Rene S. Santiago said: “If there is something drastic that will change in the coronavirus situation and the way we manage it, there is hope for the carriers.”

“Our management of the pandemic is very bad,” he said, noting the controversy surrounding the government’s purchase of medical supplies.

To help PAL and the entire aviation industry recover from the crisis, Mr. Santiago said the government should start listening to the private sector.

“They’ve been talking about involving the private sector, but this government believes only in itself,” he said, referring to the “attitude” of President Rodrigo R. Duterte. “They just pretend to listen.”

Filing for Chapter 11 bankruptcy protection is the best option for PAL at this time, said Diversified Securities, Inc. Equity Trader Aniceto K. Pangan.

“This is the best option that the management could take for now so as to survive and continue to operate in this crisis,” he said in a phone message.

Investors undoubtedly “feel negatively” on PAL’s move as it manifests the difficulty of running the company, especially in this pandemic, he added.

Terry L. Ridon, a lawyer and convenor of think tank InfraWatchPH, said in an e-mailed reply to questions: “While this bankruptcy filing should help PAL get out of the red, management, investors and creditors should come to terms on why it has reached this point, and determine whether previous problems will be resolved by this restructuring plan.”

Mr. Santiago said some “carry-over costs” may have contributed to PAL’s current situation. He said these costs from the past have not been paid off “and at the same time, it could not get into the low-cost environment.”

For Mr. Ridon, “if the problems were due to failures in strategy or leadership, merely lengthening creditor payment terms, debt forgiveness or capital infusion will not resolve PAL’s ongoing concerns.”

Mr. Zapanta said the uncertainty of the virus mutations may frustrate the recovery plans of airlines, including PAL.

The Chapter 11 filing “will help if they have unlimited resources to outlast the onslaught of the pandemic,” he noted.

“Those with limited resources may not be able to sustain their recovery plans. I know LTan (Lucio C. Tan, PAL chairman and chief executive officer) has a wide sphere of influence that might help in the infusion of needed capital. The volatility of pandemic though put that in uncertainty also,” Mr. Zapanta added.

In its market analysis released on Sept. 3, the International Air Transport Association (IATA) said that while global passenger demand in July this year was still 53.1% lower compared with the pre-pandemic level, global cargo remained robust, hovering above the pre-crisis level for the eighth consecutive month.

Markets are expected to recover at “different paces,” depending on restrictions, vaccination, and risk aversion, IATA said in an analysis in May.

PAL said on Saturday: “The restructuring plan, which is subject to court approval, provides over $2.0 billion in permanent balance sheet reductions from existing creditors and allows the airline to consensually contract fleet capacity by 25% and includes $505 million in long-term equity and debt financing from PAL’s majority shareholder and $150 million of additional debt financing from new investors.”

The company said its employees will not be affected by the restructuring.

For Mr. Santiago, slashing the fleet size by 25% may result in work force reduction.

Based on a case summary posted on public bankruptcy information website BK Data, PAL’s case was assigned case no. 21-11569 in the US Bankruptcy Court New York Southern District, Manhattan division office. PAL is being represented by international law firm Debevoise & Plimpton LLP.

PAL Holdings, Inc., the listed holding company of PAL, and Air Philippines Corp., or PAL Express, are not included in the Chapter 11 filing, according to general information on the case posted on the website of legal services provider Kurtzman Carson Consultants LLC, PAL’s claims agent.

A document on PAL’s claims agent’s website listed the airline’s top five creditors with the largest “secured claims” (excluding claims of insiders) totaling to $866.09 million. These creditors are Philippine National Bank ($156.51 million), Banco De Oro Unibank, Inc. ($80.42 million), China Banking Corp. ($54.83 million), EXIM Guaranteed Loans ($240.1 million), and PK Airfinance S.A.R.L. ($334.23 million).

It also listed creditors who have the 40 largest “unsecured claims and are not insiders” totaling to more than $1.4 billion.

Aside from Debevoise & Plimpton LLP, PAL said Norton Rose Fulbright US LLP and Angara Abello Concepcion Regala & Cruz (ACCRA) are also acting as its legal advisors. Seabury Securities LLC is acting as financial advisor and investment banker to the company.

PAL Holdings had been incurring losses even prior to the pandemic crisis. Its attributable net loss widened to P71.91 billion in 2020 from P10.31 billion in 2019 due to the “extraordinary impact” of the global health crisis on its operations, its latest annual report showed.

Ovialand sets eyes on 2022 stock market debut

By Keren Concepcion G. Valmonte, Reporter

PROPERTY developer Ovialand, Inc. is keen on raising funds for its expansion plans through an initial public offering (IPO) by the second or third quarter of next year.

“We are doing everything we can do to be IPO-ready by next year. I guess it will just depend on market conditions and everything, but we’re pretty optimistic that we will be ready by next year,” Ovialand President Marie Leonore Fatima Olivares-Vital told BusinessWorld in a video call on Friday.

Ovialand is targeting to raise around P1.5 billion from its public offering, which will be used to develop its 45-hectare land bank and to increase its landbanking portfolio.

The company has two completed developments, Terrazza de Sto. Tomas in Batangas and Sannera San Pablo in Laguna.

It has three ongoing projects, both its Savana and Santevi projects are also in San Pablo, Laguna, while its Caliya Candelaria development is in Quezon.

The property developer said it has completed some 350 units so far this year, with a goal of building around 550 housing units valued at P1 billion by yearend. With the 45 hectares of land in its portfolio, the company said it can build up to 3,000 more units.

Meanwhile, for its expansion plans, Ovialand said it wants to focus on the cities “where there’s potential.”

“We’re trying to move together with the government, where they are trying to really decongest Metro Manila and they’re trying to really open up new areas around the Philippines and that’s where we want to really be present,” Ms. Olivares-Vital said.

Ovialand is targeting to expand its housing portfolio nationwide by 2030. In May, the company said it wanted to build at least 3,000 houses yearly by 2025 and eventually up to 5,000 houses every year beginning 2030.

It also announced the appointment of China Bank Capital Corp. as its financial advisor for its “dynamic growth strategy.”

Ovialand said it experienced an uptick in sales even amid the pandemic, recording a peak of 160% to a 170% increase in reservation sales. The company is now said to be performing 1.5 times better than it did pre-pandemic.

“[Around] 95% of our clients are end-user homebuyers. Our market is really young, starting families, 28 to 35-year-olds, double-income earners, and they’re really very aspirational,” Ms. Olivares-Vital said.

With a larger market demand and a six-month timeline to develop its properties, the company looks forward to debuting at the country’s stock market.

“It’s really because we are [on] such a cusp of so much growth for Ovialand and it would be a great time for investors to come in before all of the growth that happens,” Ms. Olivares-Vital said.

Maintaining the pillars of journalistic excellence and integrity

By Bjorn Biel M. Beltran, Special Features Writer

THOUGH THE WORLD continues to grapple with the social and economic impacts of the coronavirus disease 2019 (COVID-19) pandemic, much has changed since the virus’s outbreak. As vaccines reach more and more people by the day and society adapts to the pandemic’s more lasting effects, some semblance of normalcy is beginning to take root.

The Asian Development Outlook 2021, Asian Development Bank’s (ADB) flagship economic publication, projected the Philippine economy to grow by 4.5% in 2021 and 5.5% in 2022, saying that substantial progress in the country’s vaccination rollout would help restore consumer and business confidence. This, of course, is predicated on how the pandemic will unfold globally and domestically.

“Our 4.5% growth forecast is at the lower end of economists’ estimates, so there are upsides to this projection,” said ADB Philippines Country Director Kelly Bird.

“Priority should be given to addressing the scarring effects of the pandemic on private sector employment. Programs supporting workers and firms impacted by labor market adjustments and reforms to boost productivity growth and investment will help counter the negative effects of the pandemic on employment over the medium term.”

This signals good news for the country, which has been hit by the worst economic recession since it began releasing growth data just after World War II in 1947. A new world is thus seen dawning on the Philippines, with new opportunities for a future of growth and financial inclusion.

More than ever, BusinessWorld, the country’s oldest and most respected business newspaper, has a role to play in contributing towards that future. The Filipino business community needs reliable, accurate journalism to keep them updated on the latest news and issues so that they can better maneuver themselves in a changing world; and for the 34th year in a row, BusinessWorld aims to deliver.

A TIME-TESTED REPUTATION
Over the years, BusinessWorld has continually adapted its content to cater to the needs of the Filipino business community, building a reputation of journalistic integrity unlike any other in the industry.

For instance, as the world was forced to move towards digital platforms as a result of the COVID-19 pandemic, the newspaper began holding virtual forums and platforms such as BusinessWorld Insights and the Virtual Economic Forum to provide a platform for business leaders and decision-makers to discuss the most pressing issues of the changing world.

“In its 34-year journey, BusinessWorld has gone through ups and downs, but when we took over the paper in 2015, we knew exactly what we needed to do to bring it to its former glory: Bring its content closer to the evolved business community,” Lucien C. Dy Tioco, executive vice-president of BusinessWorld and Philstar Media Group, said in an interview.

“Apart from its in-depth business-savvy intelligence, we developed new content resources to its fold: digital transformation and technology, entrepreneurship, leadership and management, even championing the local startup scene via Spark Up. We identified two key strategies to reignite its hold to the business community: organizing insight-driven events and upgrading its website. All of a sudden, BusinessWorld became easily accessible, current and relevant.”

Miguel G. Belmonte, the company’s chief executive officer, said that much of the paper’s success can be attributed to its strong Editorial department, which has built a tradition of excellence stemming from the teachings of the company’s founder, Raul L. Locsin.

“The area where we didn’t have to make many conscious changes was in the Editorial department because that’s where the strength of the established Locsin management. We didn’t want to tinker with it too much. It’s already a winning formula,” he said in an interview.

“This pandemic is a major game-changer. It really forced us to make adjustments and adapt to this new environment. Up to now it’s still a learning experience for us, although we’ve managed to understand it better, unlike last year when we were caught off-guard,” he continued. “We’ve learned to live with it from the past year and a half as a business enterprise, we’ve made changes, and now it seems like we’ve found a balance, a formula for the company to be profitable despite the ongoing situation. Not just that, we’ve identified areas where we can still continue to grow, to an extent that might even be better than pre-pandemic years. We’ve been quite successful in that so far.”

For his part, Wilfredo G. Reyes, BusinessWorld editor-in-chief, said that the Editorial department remained vigilant in maintaining the ideals of the paper’s founder throughout the years, and this has led to the development of the paper’s strong track record.

“I think it was important that we kept our eye on safeguarding and improving quality through the major changes our publication has gone through. To this day, we try to make sure that is done at every step of content production, from start to finish. Many times we succeeded, but there were also some failures. What is important is that this effort is constant because there can never be enough quality,” he said.

Making the leap to digital platforms was not easy, however. Mr. Reyes admitted that it had been a years-long process of figuring out how to translate the established traditions of BusinessWorld’s print side to the digital sphere.

“It was heartening to find people who were there to take that leap almost overnight. We had been racking our brains for decades over how and when to make a substantial shift to digital space. This to me is one of the very few good things that happened in this crisis,” he said.

“We cleared a big hurdle with our shift to digital space. This will definitely open doors for more innovations in the near future. The biggest challenge now is finding and keeping the right talent because this is no ordinary 9-to-5 job. And that means understanding what motivates new generations and matching that expectation with the publication’s mission. That, in turn, can sometimes mean changing the way we do things.”

Mr. Belmonte added that due to the current situation, the future of the company is still unclear. However, he is confident that the strength of BusinessWorld’s journalism and its reputation as one of the most trusted providers of business news in the country can carry it through.

“Because of the current circumstances, we don’t really plan too far ahead anymore. There was a time when things were easy to predict five years from now, three years from now. But now everything is so uncertain that it is very hard to forecast what will be happening in the short and medium term,” he said.

“As long as we continue to grow our print side and develop our digital side, I think it’s the simplest solution to existing. We have a very positive attitude. We’re looking forward to the coming months and we hope that next year things will be better than they are right now.”

“[The situation] has inspired us to go into a direction where BusinessWorld will deepen our role in the business community, which is to inspire them back to make their business and our economy grow even more,” Mr. Dy Tioco added. “You will be seeing these into 2022, when BusinessWorld will celebrate its milestone 35th year in what we see as an unfolding of a new changed era. And we are excited to face this with a huge amount of hope and excitement.”

Alsons’ thermal, hydro projects on track for completion

ALCANTARA-LED Alsons Consolidated Resources, Inc. (ACR) is on track with the construction of its 105-megawatt (MW) baseload thermal plant in Zamboanga and 14.6-MW run-of-river Siguil hydro facility in Sarangani province.

“We have already selected an EPC (engineering, procurement and construction) contractor and are looking to formalize the contract within the year. We are still targeting to begin commercial operations in 2024,” ACR told BusinessWorld on e-mail over the weekend through its corporate communications department, referring to the thermal plant of San Ramon Power, Inc. (SRPI).

Meanwhile, its Siguil hydro facility is on track for commercial operations within the first half of next year, it added.

Earlier this year, the company said it is targeting to switch on SRPI and Siguil hydro facilities in 2024 and 2022, respectively.

ACR previously said it plans to focus on scaling up its hydro facilities in the coming years, adding that it had seven more run-of-river hydroelectric projects in its pipeline.

Over the weekend, the company said that it is considering other renewable technologies “but there is nothing definitive yet.”

In 2017, it said it was mulling over setting up a separate retail electricity supply business. At present, the firm is “in the process of acquiring the approvals” for its entry into the retail electricity business.

It previously reported a second-quarter attributable net income to its owners of P174.19 million, down by 37.1% amid lower revenues.

ACR and the Alcantaras’ subsidiaries and affiliates in the power business are grouped under the Alsons Power umbrella brand.

On its website, Alsons Power describes itself as Mindanao’s first private sector power generator. It has a portfolio of four power facilities with an aggregate capacity of 468 MW. These power plants serve key urban centers in the south, including Cagayan de Oro, General Santos, Iligan and Zamboanga City. — Angelica Y. Yang

Rates of T-bills, T-bonds likely to move sideways

BW FILE PHOTO

RATES OF government securities to be auctioned this week are expected to move sideways following weaker-than-anticipated US jobs data and expectations that inflation picked up last month.

The Bureau of the Treasury (BTr) is looking to raise P15 billion through its offer of Treasury bills (T-bills) on Monday — P5 billion each in 91-, 182- and 364-day debt papers.

It will also auction off P35 billion in reissued seven-year Treasury bonds (T-bonds), which have a remaining life of six years and 11 months.

Two bond traders said T-bill rates could move sideways from their week-ago levels.

For the seven-year T-bonds, the first trader expects its average rate to fall within 3.75% to 3.825%, while the second trader gave a forecast range of 3.85% to 3.95%.

The first trader said the market will take its cue from the US jobs data reported on Friday, as well as the August inflation report, which will be released by the Philippine Statistics Authority on Sept. 7.

US Labor department data showed nonfarm payrolls increased by 235,000 last month, its smallest rise since January, Reuters reported. This was also softer than the 750,000 new jobs expected by analysts in a Reuters poll.

Meanwhile, a BusinessWorld poll of 16 analysts yielded a median estimate of 4.4% for August inflation. If realized, headline inflation will again go beyond the central bank’s 2-4% target following the 4% print in July and will be faster than the 2.4% logged in August 2020.

Economists said the weaker peso and its impact on import prices likely resulted to a faster increase in the consumer price index last month.

The Treasury last week raised P15 billion as programmed via its offer of T-bills as demand reached P55.185 billion.

Broken down, it made a full P5-billion award of the three-month securities as demand for the tenor reached P15.584 billion. The average rate for the 91-day T-bills stood at 1.077%, steady from the previous auction.

The BTr likewise borrowed P5 billion as planned via the 182-day T-bills as tenders hit P22.646 billion. The average rate of the six-month papers slipped by 0.3 basis point (bp) to 1.405% from the 1.408% quoted the prior week.

Lastly, the Treasury raised the programmed P5 billion from its offering of 364-day securities, which attracted bids worth P16.955 billion. The average rate of the one-year debt papers increased by 0.4 bp to 1.616% from 1.612% previously.

Meanwhile, the last time the Treasury offered the reissued seven-year papers on the auction block on Tuesday was on Aug. 10, when it made a full award of the fresh bonds as its rate fell within market expectations, even as investors remained concerned over the impact of the ongoing lockdown on economic growth.

The BTr raised P35 billion as planned via the fresh seven-year T-bonds at that auction as total tenders reached P63.696 billion, or nearly twice as much as the offer volume. The seven-year papers fetched a coupon rate of 3.75%.

At the secondary market on Friday, the 91- 182- and 364-day T-bills fetched yields of 1.1479%, 1.4187%, and 1.6322%, based on the PHL Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website. Meanwhile, the seven-year bond was quoted at 3.5935%.

The Treasury is looking to raise P250 billion from the local market this month: P75 billion via weekly offers of T-bills and P175 billion from weekly auctions of T-bonds.

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

PSALM sets second round of bids for Pampanga asset

STATE-RUN Power Sector Assets and Liabilities Management Corp. (PSALM) said it is set to hold the second round of public bids for the sale of a 50,447-square-meter real estate asset in Mexico, Pampanga.

“The minimum bid price for the property set by the PSALM Board is P741.33 million. Interested bidders may participate and bid for the Mexico property inclusive of the warehouse structures and other land improvements,” PSALM said in an e-mailed statement over the weekend.

The bidding will be on an “as-is, where-is” basis, and full remittance of the payment is expected.

PSALM will be holding a pre-bid conference at 2:00 p.m. on Sept. 15. The event intends to address questions of prospective bidders related to the terms of the sale.

“An interested party is required to pay a non-refundable participation fee in the amount of P100,000 until two business days before the bid submission deadline,” it said.

The deadline of bid submissions is on Oct. 20 at 2:00 p.m., and the opening of bids will immediately follow.

The property, which is located in Brgy. Lagundi, consists of one lot known as “Lot No. 552” and is covered by a clean title, PSALM said. The property was the site of the National Power Corp.’s (Napocor) transshipment warehouse facility for generation and transmission projects.

Under the Electric Power Industry Reform Act of 2001, Napocor transferred the property to PSALM.

“The property is appropriate for commercial land development and is highly accessible via the North Luzon Expressway, Subic-Clark-Tarlac Expressway, MacArthur Highway, and Jose Abad Santos Avenue. It is in close proximity to community centers like schools, hospitals, and major shopping malls,” the state-run entity said.

According to PSALM, the new owner of the Pampanga asset can re-develop the area to build wholesale and retail stores, shops, and supermarkets. It added that the property may also benefit from the planned Manila-Clark railway system, which is slated for completion within the fourth quarter this year.

Proceeds from the sale will help settle the financial obligations assumed by PSALM from Napocor. — Angelica Y. Yang

Evolving in the ‘now normal’ with timely discussions

By Bjorn Biel M. Beltran, Special Features Writer

WHEN THE COVID-19 pandemic struck, most of the Philippine print industry had already been struggling. Digital media have been slowly draining away advertising, and some readers might have began to question the relevance of print newspapers at a time of instant information and communication. So, when the outbreak began, its impact was nearly lethal.

BusinessWorld, despite being the country’s oldest and most respected business daily, was no exception.

“I remember how optimistic our outlook was for the year 2020 with print adspend on the upswing in the first two months. We began to roll out our 2020 plans, even booked the Grand Hyatt Hotel and sent out invite letters to our speakers for our May BusinessWorld Economic Forum as early as February,” Jay R. Sarmiento, BusinessWorld Sales and Marketing head, said in an interview.

“Then in mid-March, what we thought of as a short-lived Enhanced Community Quarantine became our biggest nightmare. The lockdowns undermined the physical distribution of BusinessWorld. Print revenues sank as advertising campaigns were postponed and ad budgets were reallocated. We were caught in the middle of a lingering and unprecedented pandemic and had to deal with a massive blow to the already struggling newspaper industry.”

The severity of the impact forced the company to put its yearly plans on hold and realign. With the company’s survival at stake, BusinessWorld had to adapt to the rapidly changing environment.

“Realizing that more and more people are relying on social media for news and information, we thought we should follow our readers and provide the business community easy access to reliable and accurate news and information. Thus, BusinessWorld Insights was launched on April 29, 2020 as a live platform to engage high-caliber speakers and experts on COVID-19 health updates, government guidelines, economic trends, and forecasts brought by the current pandemic,” Ms. Sarmiento said.

Working closely with the Editorial team, the Sales and Marketing head focused on what the paper can build on despite all the challenges and limitations of the pandemic. Ultimately, BusinessWorld was successfully able to mount almost 40 online fora in 2020, providing its core audience of business leaders and decision-makers exclusive and valuable multimedia content while opening up new revenue streams for the company.

STAYING COMMITTED TO ITS JOURNALISTIC DUTY

The key purpose of BusinessWorld’s leap into digital media content was the same: providing reliable, insightful news and analysis for the Filipino business community.

“When the pandemic happened, BusinessWorld was able to quickly pivot from this global crisis primarily due to two important factors: its preparation into its digital transformation by honing its multimedia skills and continuously reshaping its tradition of creating editorial content that is thorough, disciplined, and uncompromising,” Lucien C. Dy Tioco, executive vice-president of BusinessWorld, said.

Ms. Sarmiento added that the pivot had been a continuous process. When the company celebrated its 33rd anniversary with the theme “The Road to Recovery,” it came out with a multimedia report combining the power of print, digital, and another exclusive online offering — the BusinessWorld One-on-One, a series of 30-minute exclusive interviews on leadership and management with CEOs and industry experts and BusinessWorld’s Editor-in-Chief, Wilfredo G. Reyes.

“Our flagship on-ground event, the BusinessWorld Economic Forum, was also successfully transformed into a two-day groundbreaking virtual forum in November 2020, with 1,200 attendees engaging our 43 international and local speakers and supported by more than 30 companies,” Ms. Sarmiento said. “This was followed by another successful special edition run in May 2021. It focused on digital transformation, which has become the necessary tool for most businesses to survive this crisis. Preparations are also now under way for our major BusinessWorld Economic Forum in November this year.”

“With these digital platforms and along with other innovative initiatives born out of a crisis, we were not just able to reconnect with our audience but we were also able to engage, guide, and empower them as they went through their respective journeys of recovery.”

Mr. Reyes added that staying true to the newspaper’s duty as a public trust allowed it to connect with its core audience and deliver the content that they need to navigate the challenges of the pandemic.

“Helping our public recover from this crisis by giving it the knowledge it needs at the right time is a top consideration in our content production, both on print and online. The crisis actually opened new channels to make and deliver more content to a bigger audience,” the editor-in-chief said.

“Decision makers of varied organizations, big and small, remain a key segment of our readership and audience,” he continued. “I recall a recent conversation with a speaker in one of our webinars who said a top official censured him for what he said. I asked him why speak up only now when he had spoken on TV quite a few times before that webinar. He replied: ‘Because it was BusinessWorld.’”

He added that the current crisis even opened up new opportunities for BusinessWorld’s staff to unearth talents previously unknown.

“The fact that our new channels have been successful in providing information proves that demand is there, and I do not expect us to scale back this effort. In fact, I expect that effort to increase,” he said.

Sharlitte Iza M. Cordero, BusinessWorld Brand Marketing supervisor, pointed out that the paper’s 34-year-long history of journalistic integrity and excellence allows it to provide the most relevant information for its audience.

“Fueled by the right content, audience and medium, the paper — through BusinessWorld Insights — is seen to be our readers’ beacon shedding light on the ambiguity that this pandemic has brought by discussing the most pressing issues with leaders in the public and private sectors across industries,” Ms. Cordero said.

Moving forward, this deep connection with its audience is what BusinessWorld hopes to cultivate as it continues to grow and explore the potential of the digital platform.

“The pressure of the new normal has made us sharpen our vision for BusinesssWorld. We need to constantly reinvent in order to flourish and future-proof our business. We must be mindful and ready to shape our business models according to the new consumer behaviors to survive, thrive, and ensure relevance in the new world. What’s more, whatever path a newspaper was already on — in terms of transition to digital — is probably now accelerated by four years,” Ms. Sarmiento said.

“Given that physical and virtual will most likely coexist in new ways in a post-pandemic world, we need to harness the power of the digital networks that connect us even more, while preserving the power of print in providing high-quality and credible information, pandemic or not.”

Bills on investments, foreign capital to boost markets

FINANCIAL MARKETS are expected to benefit from the passage of measures that seek to expand investment options for pension account holders and open up the country to foreign capital, the Department of Finance said.

“The passage of the proposed Capital Markets Development Act of 2021 is expected increase demand for financial securities. The greater issuance of these securities, however, will depend on the sustainability of economic growth and efficiencies in the financial markets,” Finance Undersecretary Gil S. Beltran said in a note.

The proposed Capital Markets Development Act of 2021 or House Bill 9343 was approved in May. It has been transmitted to the Senate and has been pending at the committee level since June.

Among the measure’s provisions is to allow pension account holders to put their funds in accredited investment products. Regulators will designate a default investment scheme in case there is no preferred product indicated.

Mr. Beltran added that economic growth will be supported by measures that could open it up to more foreign capital, such as the proposed amendments to the Foreign Investment Act (Senate Bill 1156), the Public Service Act (Senate Bill 2094), and the Retail Trade Liberalization Act (Senate Bill 1840). All three are pending at the Senate.

Markets will also benefit from the passage of the Passive Income and Financial Intermediary Tax Reform Act (PIFITA), which is also pending at the Senate, he said.

“[PIFITA] aims to make Philippine financial markets more efficient and competitive by, among others, rationalizing or even doing away with “nuisance” documentary stamp taxes on financial products that are the sources of friction costs in the financial markets,” the Finance official said.

“In many ways, the ability to issue local currency bonds is a reflection of investor confidence in the economy. The fiscal sector, once the Achilles’ heel of the economy, has become a strong pillar for sustainable development and an enabler of capital markets development,” Mr. Beltran added.

8990 Holdings appoints new president, CEO

8990 Holdings, Inc. has appointed a new president and chief executive officer (CEO) after Ace S. Sotto, a company director who held the leadership posts, resigned and will instead serve as chief operating officer.

Anthony Vincent S. Sotto will now be steering the company as its director, president and chief executive, describing the appointment as an “honor and privilege.”

“Through this position that the company has entrusted to me, I hope I would be able to continue and strengthen our commitment of providing a home to every hardworking Filipino,” new appointee Mr. Sotto said in an e-mailed statement on Friday. 

Before joining 8990 Holdings, Mr. Sotto was an associate lawyer at Solis & Medina Law Offices. He holds a Bachelor of Laws degree from the University of the Philippines Diliman and was admitted to the Philippine bar in Sept. 2001.

He joined 8990 Holdings 18 years ago as assistant general manager and held the position for eight years before getting promoted to general manager.

In June 2019, Mr. Sotto was promoted to deputy chief executive of the 8990 group. His appointment as one of 8990 Holdings’ directors, its president, and chief executive is effective immediately.

8990 Holdings is a low-cost mass housing developer, with horizontal subdivision projects as well as medium-rise building condominiums via its Urban Deca Homes brand. It also has high-rise building projects through Urban Deca Towers brand.

8990 Holdings entered the high-end property market via its 2019 acquisition of GENVI Development Corp., the property company behind Monterrazas de Cebu.

Mr. Sotto, the new president, said that the company is trying to stay within the market it is known for.

“I’ve always believed [that] we have to be true to the market that we really serve, mass housing — I would want that we stay there,” he told reporters on Aug. 27.

8990 Holdings reported a second-quarter income of P1.91 billion, surging from a low base of P138.93 million in the same period last year. Its topline went up by almost three times to P5.54 billion.

Its profit for the six-month period grew by 133% to P3.46 billion from last year’s P1.48 billion. The latest figure is also more than half of its full-year 2019 income of P5.86 billion.

“The mass housing market has been benefiting from the country’s demographic sweet spot or majority of the population or more than 50 million already at working age since 2015, thereby fundamentally supporting the demand for mass housing, as well as in view of the country’s housing backlog in recent years or decades,” Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said in a Viber message on Sunday.

He added that the country’s housing loans or mortgages have been relatively lower compared with other countries in the region.

Near record-low interest rates as well as other indicators to help support economic recovery have made it more “compelling for many individuals and households” to avail of loans to allow them to get their own homes.

“There is still [a] great opportunity for more Filipinos, especially in view of the growing working age of the population as some of them start families or already have the financial capacity to avail housing loans/mortgages to finance the acquisition of property, especially homes, such as mass housing, condominium units, house and lot or single-detached units, townhouses, among others,” RCBC’s Mr. Ricafort said. — Keren Concepcion G. Valmonte

An in-depth publication of financial information

By Chelsey Keith P. Ignacio, Special Features Writer

BEYOND BRINGING NEWS on business and the economy through print and online platforms, BusinessWorld also publishes a comprehensive source of financial information of the largest stock corporations in the country.

For 34 years now, BusinessWorld’s Top 1000 Corporations of the Philippines magazine has been providing a look at the financial performance of organizations that could be useful for readers and the corporate sector itself.

“Similar to how financial statements are used to assess a company’s financial health and earnings performance, the Top 1000 helps paint a picture on how the country’s corporate sector is doing as the former can be used as a proxy for the latter. In turn, the corporate sector can be used to gauge the health of the macroeconomy given its contribution to the economy in terms of output produced and jobs provided,” said Leo Jaymar G. Uy, BusinessWorld’s research head, in an interview.

The Top 1000 ranks private and public stock entities based on their latest annual gross revenue. The publication has a main ranking that assessed companies based on their parent-only financial statements; while a separate table shows the ranking of conglomerates, which recognized a parent company and its subsidiaries as one. 

Aside from the standing of corporations through their gross revenues, the publication also covers details such as net income, receivables, payables, and financial ratios.

BusinessWorld researchers use a “tickmarking” guide in their methodology for the Top 1000 publication, which is a way for them to identify items considered as the net sales, cost of sales, debt, or inventory in the financial statements since such items would depend on the industry where companies belong.

“For instance, it may be not clear whether a certain earnings item is part of its primary business activity or if it’s under ‘other income.’ The guide makes sure that we distinguish which is which given the firm’s primary business activity and its industry classification,” Mr. Uy explained, noting as well that line items in financial statements of companies may vary even they come from the same industry.

Such methodology, along with the information provided, for the Top 1000 constantly undergoes refinement. Hence, readers surely have observed how much the publication has changed since its first edition.

The most recent edition of Top 1000 provided financial details of the country’s biggest corporations in 2019, giving readers an overview of how these firms performed before experiencing the impacts of the coronavirus disease 2019 (COVID-19) crisis.

The latest publication showed that these top 1,000 corporations made an overall gross revenue of P12.303 trillion and a combined income of P1.455 trillion in 2019.

This 4.7% increase in gross revenue from the P11.754 trillion in 2018 also presented that such growth has moved at a slow pace even before the pandemic.

Leading the top firms of 2019 was oil refiner and distributor Petron Corp., earning gross revenue of P323.273 billion, though decreasing by 10.5% compared to its P361.353 billion in 2018. Its profit also fell from P6.337 billion in 2018 to P114.923 million in 2019.

Manila Electric, Co. (Meralco) came in second. The power distributor company improved its gross revenue by 3.7% to P309.090 billion in 2019. Its net income, which was at P20.644 billion, declined by around 15%.

The third spot was received by Pilipinas Shell Petroleum Corp. with gross revenue of P219.779 billion in 2019, a marginal decrease of 0.03% compared to its 2018 gross revenue. The company experienced a 10.7% rise in net income with its P5.62 billion.

Completing the top 10 firms in 2019 were BDO Unibank, Inc. (P196.226 billion); PMFTC, Inc. (P172.765 billion); Toyota Motor Philippines Corp. (P160.532 billion); Mercury Drug Corp. (P160.180 billion); Philippine Airlines, Inc. (P154.532 billion); Toshiba Information Equipment (Philippines), Inc. (P139.523 billion); and Nestlé Philippines, Inc. (P125.102 billion).

Meanwhile, in the top 200 consolidated corporations, San Miguel Corp. (SMC) and subsidiaries came first with a 0.8% increase in gross revenue amounting to P1.068 trillion in 2019.

The second spot went to Top Frontier Investment Holdings, Inc., a top shareholder of San Miguel, with its gross revenue of P1.068 trillion that grew by 0.9%. Petron, which has P520.606 billion gross revenue that fell by 7.7%, occupied the third spot.

Conglomerates that also made it to the top 10 were SM Investments Corp. and subsidiaries (P506.295 billion); Mermac, Inc. and a subsidiary (P330.906 billion); Ayala Corp. and subsidiaries (P330.906 billion); Meralco and subsidiaries (P322.592 billion); San Miguel Food and Beverage, Inc. and subsidiaries (P313.803 billion); JG Summit Holdings, Inc. and subsidiaries (P307.596 billion); and GT Capital Holdings, Inc. and subsidiaries (P226.754 billion).

This financial information, as mentioned, is from 2019. Thus, the key findings of the latest Top 1000 would let the readers and organizations analyze the performance before COVID-19 hit businesses in the Philippines.

Seeing the significant impact that the crisis made on the economy in 2020, it could somehow give hints on the gross revenue and net income of several corporations in that year. These financial details of companies in time of COVID-19 would be presented on the upcoming edition of Top 1000.

“It’s safe to say a lot of these firms may experience a drop in revenue and net income (or at least, slower growth) if current developments are any indication. Given the 9.6% drop in the Philippine gross domestic product (GDP) in 2020, it would not be surprising to see a similar turnout for the big players given the fairly high correlation between macroeconomic performance and firm performance,” Mr. Uy said.

“Given what we already know of the performance of industries in the full-year GDP report and annual reports of listed firms, we already have an idea of which companies may likely see their earnings decline in 2020. The Top 1000 results will confirm and support that trend.”

As of now, BusinessWorld has yet to finalize the next Top 1000 lineup since the collection process is still ongoing. “Nevertheless, expect the same level of effort that BusinessWorld has put into the production of the Top 1000. Given the extraordinary times we’re living in, I hope readers would find this publication helpful in whatever purpose they will be using this for,” Mr. Uy expressed.

Life coach offers online makeovers for the face and the soul

COACH NING BARCELO TADENA

WITH HALF your face covered and with crisis in the air, how can you think of makeovers at a time like this? A life coach and makeup artist has the answer.

In an e-mail interview with BusinessWorld, Ning Barcelo Tadena said, “In one of my coaching specializations, we learned that our physiology affects our psychology, and our psychology affects our physiology. Simply put, our acting affects our thinking and vice versa. If we dress drab, we’ll probably feel drab about ourselves. If our hair is disheveled when we look at ourselves, we’ll probably feel disheveled, as well. When we enhance the way we look, we inadvertently enhance the way we feel.” It’s mens sana in corpore sano (the Latin phrase meaning “a sound mind in a sound body”) in action.

Ms. Tadena offers beauty and lifestyle workshops — for free — through the Unlock the Diva Community group on Facebook. Ostensibly just lessons on doing your makeup at home, the sessions (which started in August and will go on until October) also offer self-love and self-care affirmations. A release says, “The aim is to achieve a body, heart and mindset make-over and the ultimate goal is to spread more LOVE (capitalization theirs) during this time that we need it the most.” The third session, for example, covers eyebrows, and the affirmation “I am caring!” Other sessions would cover eyes, hair, lips, among others — with accompanying affirmations such as “being enough,” “being caring,” and “being grateful.”

“I feel it’s also relevant to learn more practical skills in makeup because there are more online meetings done, and masks are not worn there. Women might be buying products that are not suitable for them and they don’t know how to use them. My aim is simply to give them practical tips and teach them how to apply [makeup] easily and do it with a healthy heart and mindset,” said Ms. Tadena.

An author of two inspirational books (Unlock the Diva — A Life Guide to Unlocking Your Purpose and the Diva Prayer Book — Prayers for the Modern Woman), Ms. Tadena explained the reasons behind starting the workshops, as well as doing them for free. “Before the pandemic, I led a very active lifestyle. I would do back-to-back talks; travel to different places to do workshops, trainings, and book signings. But since I can’t do all that face-to-face anymore, I asked myself this question that has guided me since the beginning of the lockdown last year: ‘what can I do, with what I have and where I am now?’

“From there I have grown in connecting through online events, trainings and talks,” she said. “Some are paid, some are free — the question that guides in answering that is ‘what serves the highest good?’.” Free talks, according to her, “reach and bless more,” while paid engagements are for those “who would like to commit themselves to growing deeper and learning more.”

“I am a professional makeup artist and a life coach. My mission for several years now has been to bring out beauty in people from the inside and out.”

On that note, Ms. Tadena gave tips on feeling and looking beautiful while wearing a mask. “I got that specific question from one of the participants of the Diva Make-Over Challenge regarding masks. So, I told her that it will just be great to bring out her eyes more since her nose and her mouth are covered — no need for lipstick and foundation.”

To join the sessions, enter the Unlock the Diva Community Facebook group at facebook.com/groups/unlockthedivacommunity/. Registration is free. — JL Garcia

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