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Global COVID-19 cases surpass 200M as Delta variant spreads 

REUTERS

Coronavirus cases worldwide surpassed 200 million on Wednesday, according to a Reuters tally, as the more-infectious Delta variant threatens areas with low vaccination rates and strains healthcare systems.  

The global surge in cases is highlighting the widening gap in inoculation rates between wealthy and poor nations. Cases are rising in about one-third of the world’s countries, many of which have not even given half their population a first dose.  

The World Health Organization (WHO) on Wednesday called for a moratorium on coronavirus disease 2019 (COVID-19) vaccine boosters until at least 10% of the population in every country was vaccinated. 

“We need an urgent reversal, from the majority of vaccines going to high-income countries, to the majority going to low-income countries,” WHO Director-General Tedros Adhanom Ghebreyesus said.  

The Delta variant is upending all assumptions about the virus and roiling economies, with disease experts scrambling to find whether the latest version of coronavirus is making people, especially unvaccinated individuals, sicker than before.  

At least 2.6% of the world’s population has been infected since the pandemic started, with the true figure likely higher due to limited testing in many places. If the number of infected people were a country, it would be eighth most populous in the world, behind Nigeria, according to a Reuters analysis. 

It took over a year for COVID-19 cases to hit 100 million mark, while the next 100 million were reported in just over six months, according to the analysis. The pandemic has left close to 4.4 million people dead.  

The countries reporting the most cases on a seven-day average — the United States, Brazil, Indonesia, India and Iran — represent about 38% of all global cases reported each day.  

The United States accounts for one in every seven infections reported worldwide. U.S. states with low vaccination rates such as Florida and Louisiana are seeing record numbers of COVID patients hospitalized, despite the nation giving 70% of adults at least one vaccine shot. The head of one Louisiana hospital warned of the “darkest days” yet.  

Unvaccinated people represent nearly 97% of severe cases, according to the White House COVID-19 Response Team.  

RISING CASES IN ASIA  

Countries in Southeast Asia are also reporting rising cases. With just 8% of the world’s population, the region is reporting almost 15% of all global cases each day, according to a Reuters analysis.  

Indonesia, which faced an exponential surge in COVID-19 cases in July, is reporting the most deaths on average and surpassed 100,000 total deaths on Wednesday. The country accounts for one in every five deaths reported worldwide each day. The Southeast Asian nation aims to gradually reopen its economy in September, Health Minister Budi Gunadi Sadikin said on Monday, citing that the wave of infections had passed its peak, with daily confirmed cases on the decline.  

After suffering its worst outbreak in April–May, India is once again seeing a rising trend of cases. Last Friday, the country reported 44,230 new COVID-19 cases, the most in three weeks, fuelling worries of a third wave of infections that has forced one state to lockdown.  

China’s Wuhan city, where the virus first emerged in late 2019, will test its 12 million residents for the coronavirus after confirming its first domestic cases of the Delta variant. The city had reported no local cases since mid-May last year.  

The variant, first detected in India, is as contagious as chickenpox and spreads far more easily than the common cold or flu, the CDC said in an internal document.  

A key issue, said Dr. Gregory Poland, a vaccine scientist at the Mayo Clinic, is that the current vaccines block disease, but they do not block infection by keeping the virus from replicating in the nose.  

As a result, he said, “the vaccines we have currently are not going to be the be-all, end-all,” he said. “We are now in a scenario of our own making, where this is going to be years to decades to now defeat. … And we’re going to chase our tail with variants until we get a type of vaccine that offers infection and disease-blocking capabilities.” — Roshan Abraham and Kavya B/Reuters

Inflation slows to 7-month low in July 

PHILIPPINE INFLATION eased to a seven-month low in July, the Philippine Statistics Authority (PSA) reported earlier this morning.

Preliminary data from the PSA showed headline inflation at 4.0% in July, slowing from the year-on-year rate of 4.1% in June. Still, this was above the 2.7% print recorded in July last year.

The latest headline figure matched the median of the BusinessWorld poll conducted last week. It also fell within the 3.9%-4.7% estimate given by the Bangko Sentral ng Pilipinas (BSP) for July.

The July result marked the slowest in seven months, or since the 3.5% annual rate posted in December 2020. Prior to that, the inflation in June was at a six-month low.

The inflation in July also marked the first time since December that it settled within the BSP’s 2-4% inflation target for the year.

Year-to-date inflation settled at 4.4%, still above this year’s target and above the forecast of 4% for the entire year.

Core inflation, which discounted volatile prices of food and energy items, stood at 2.9%. This was slower than the 3% in June and 3.3% in July 2020. It averaged 3.3% so far this year.

On the other hand, the inflation rate for the bottom 30% of income households slightly picked up to 4.4% in July from 4.3% the previous month. It was also faster than the 2.9% recorded in July last year. So far, bottom 30% inflation averaged 4.8% for the year.

The inflation rate for the bottom 30% takes into account the spending patterns of this income segment. Thus, its consumer price index differs from that of the average household with the former assigning heavier weights on necessities. – Nadine Mae A. Bo

SM Foundation provides aid for Typhoon Fabian victims in Bacoor

SM Foundation, through its Operation Tulong Express Program (OPTE), distributed Kalinga packs to more than 1,100 families affected by the flooding brought by Typhoon Fabian in Brgy.Habay 1, Bacoor City, Cavite. OPTE is a social good program of SM Foundation in collaboration with SM Supermalls and SM Markets which aims to address the needs of communities during calamities and crises.

Reboot towards global competitiveness in retail at 27th NRCE

Now on its 27th edition, the National Retail Conference and Stores Asia Expo (NRCE) returns on Aug. 12-13 to provide retail professionals data-based insights through innovative sessions and networking opportunities, as well as opportunities to find new connections and build lasting relationships.

Attended by the who’s who in the business scene, the 27th NRCE will revolve around the theme “RETAIL REBOOT” to reignite the retail industry with its allied industries to uncover new ways and even behaviors as the rules to achieve an innovative retail transformation are being rewritten by recent disruptions.

As the Philippine Retailers Association (PRA), through the NRCE, fully commits in giving retailers exclusive knowledge and actionable strategies that will help their business achieve global competitiveness, the 27th edition of the biggest industry event in the country by retailers, of retailers, for retailers will feature the most progressive retail leaders and industry experts.

Headlining the two-day expo are Doug Stephens, founder of The Retail Prophet, best-selling author, retail futurist, and a Fortune 100 business Advisor, and Ian McGarrigle, founder and chairman of the World Retail Congress, as keynote speakers for day 1 and day 2, respectively.

Digital psychologist Dr. Liraz Margalit

Mind-tickling sessions will also be held at the 27th NRCE. Digital psychologist Dr. Liraz Margalit will discuss “Understanding Your Customers’ Shopping Behavior in the Era of Experiences.” From the Future Research Design Company (FRDC), Co-Founder and MD Sanjay Agarwal and Associate Director for Marketing Communications & Strategy Chanda Kumar will present on “The Reinvention Regime of the Store ― What’s in Play.” Kara Change Management’s Managing Director Allan O’Neill completes the lineup with an eye-opening session theme, “Culture Matters: The Four ‘Must Have’ Values to Supercharge Your Business.”

Kara Change Management Managing Director Allan O’Neill

Register now at www.nrce-ph.com, email nrceph@gmail.com, or call at 8687-4180 to 81 to ensure that your business is one step ahead of the competition.

The 27th NRCE is powered by the following sponsors: Globe Business, PLDT Enterprise, Bench, Wilcon Depot, The SM Store, Unilab, Robinsons Malls, Bayer Philippines, Entrego, Vasavah Consultancy, The Philippine STAR, Springtime Design, BusinessWorld, ANC, TeleRadyo, HDI Adventures, Manila Times, Media Blitz, 96.3 WRock, CMG Retail, Mercury Drug, Facebook, and Rich Graphix Brand.

Olympic broadcasting services hosted in the cloud for the first time

OBS International Transmission MCR Room: Remote post-production and production with content accessible from any location via an internet connection

OBS leverages Alibaba‘s cloud technologies for a value-added service delivery at Tokyo 2020, offering key services accessible from anywhere

  • Cost-efficiency and worldwide manageability for storing, managing and delivering huge quantities of content produced
  • Faster deployment with reduced set-up time and fewer onsite resources
  • Remote post-production and production with content accessible from any location via an internet connection

In collaboration with Olympic Broadcasting Services (OBS), Alibaba‘s cloud solutions will be supporting service delivery for Rights-Holding Broadcasters (RHBs) for the first time during the Olympic Games Tokyo 2020. Built upon the platform provided by Alibaba Cloud, the digital technology and intelligence backbone of Alibaba Group and Worldwide TOP Partner, OBS Cloud offers new models for content delivery that drive operational efficiency and greater agility. An innovative broadcasting solution brought together by OBS and Alibaba, and operates entirely on the cloud, OBS Cloud, is designed to help transform the media industry for the digital era.

Yiannis Exarchos, OBS Chief Executive Officer, commented “The partnership with Alibaba Cloud is transforming how we broadcast the Olympic Games to the widest possible audience – this is perhaps the biggest technological change in the broadcasting industry for more than half a century since the introduction of satellite transmission, which was introduced to Olympic broadcast coverage for the first time at Tokyo 1964.”

Leveraging Alibaba technologies, Content+, OBS’ content delivery platform is now fully migrated to the cloud for delivering short-form content, content asset management and content production.

Delivering short-form content

During Tokyo 2020, between 7,000 and 9,000 short-form content clips are expected to be produced by the OBS Content+ crew to help enhance RHB coverage. 17 RHB organisations and four news agencies have subscribed to the full service of receiving those clips through a user-friendly web-based interface. The thousands of clips can be accessible by the RHBs’ digital and social media teams from any location in the world to supplement their own Olympic coverage.

Content asset management

Through Content+, RHBs will be able to access all Olympic content produced by the OBS including live content as it is being produced. 31 RHB organisations have signed up for this full service to be able to easily browse through the low-resolution files in near real-time, and retrieve any content in any of their global facilities. The access to live coverage allows RHBs to mark part of the live content and download it for their own post-production needs, simultaneously when the games are still happening.

Content production

Used as part of post-production workflow, OBS will use the Content+ platform for remote editing and standards conversion; a feature that will be extended as a service to the RHBs for future Olympics.

In addition, two RHBs will receive live distribution of Ultra High Definition (UHD), High Dynamic Range (HDR), and Internet Protocol Video and Audio package during Tokyo 2020, allowing them to deliver 4K content to their viewers.

OBS International Transmission MCR Room: Remote post-production and production with content accessible from any location via an internet connection

Selina Yuan, general manager of International business, Alibaba Cloud Intelligence, said “We are confident that OBS Cloud will deliver tremendous benefits to media organizations in terms of cost-efficiency and worldwide manageability, and help digitally transform the way RHBs broadcast the Olympic Games. The agility that comes with cloud infrastructure allows faster deployment time with fewer onsite resources, while the flexibility of a cloud platform enables remote post-production and production to be done faster – and from any location with an internet connection. We look forward to seeing the future of Olympic Games broadcasting begin at Tokyo 2020.”

Gov’t cuts agriculture growth target

DA/PRRI
THE Agriculture department cut its full-year growth target for the farm sector to 2% from 2.5% previously. — DA/PRRI

By Revin Mikhael D. Ochave, Reporter

THE Department of Agriculture (DA) lowered its full-year growth target for the farm sector to 2% due to the impact of the ongoing coronavirus disease 2019 (COVID-19) pandemic and the African Swine Fever (ASF) outbreak.

Agriculture Secretary William D. Dar on Wednesday said the farm output target was trimmed from the initial 2.5% goal, as the sector faces challenges from the various lockdown restrictions. He also noted the hog industry continues to struggle with the ASF outbreak.

“We hope to achieve a comfortable growth in sync with the population growth. So, 2% (growth) would still be a good target,” he said at a virtual press conference.

“With all the indications, the pandemic is still ongoing and is getting worse, together with the lingering problem with ASF. However, our target is still at 2% since other subsectors are improving such as the rice subsector,” he added.

The 2% growth this year for the agriculture sector would be an improvement after the 1.2% contraction seen in 2020, and the 0.3% growth in 2019. Farm output contributes about a tenth to gross domestic product (GDP) and a fourth of the country’s jobs.

In 2020, the farm sector reeled from the effects of the prolonged lockdowns, the ASF outbreak, and a string of strong typhoons in the latter part of the year. The country’s GDP contracted by a record 9.6% last year.

Agricultural production continued its slump, declining by 3.3% in the first quarter this year.

Despite the lower growth target for 2021, Mr. Dar said palay (unmilled rice) production is expected to reach 20.4 million metric tons (MT), one million MT more than the previous record harvest of 19.4 million MT in 2020.

The DA chief said farm and fisheries production can still improve with the help of modern technology, a higher budget, and more investments from local governments and the private sector.

Mr. Dar previously announced that the Agriculture department is seeking a P250-billion budget for 2022, versus its P80-billion budget this year.

Calixto V. Chikiamco, Foundation for Economic Freedom (FEF) president, said the department’s adjusted growth target is a reasonable short-term objective, but will be difficult to achieve with the ongoing pandemic and ASF outbreak.

“It is more likely way below 2%. But the DA’s target is a reasonable short-term target, given the pandemic and the ASF plague on the hog industry,” Mr. Chikiamco said via mobile phone message.

However, Mr. Chikiamco said the government needs to solve the issue of land fragmentation in agriculture.

“Unless the problem of land fragmentation is fixed, sustaining annual agriculture growth at 3% to 4% for the long term is unattainable,” Mr. Chikiamco said.

“Secretary Dar is trying to solve the problem with ‘farm clustering.’ However, this is only a band-aid solution. The real solution is to free the rural land market so farm consolidation can take place via ownership and leasing,” he added.

In a mobile phone message, Samahang Industriya ng Agrikultura (SINAG) Executive Director Jayson H. Cainglet said the DA’s growth target is an “empty number.”

Instead, Mr. Cainglet said the DA should support local production and hasten the establishment of first border inspection facilities to prevent the entry of animal diseases such as ASF.

Del Monte Philippines defers IPO on virus worries

By Keren Concepcion G. Valmonte, Reporter

DEL MONTE Pacific Ltd. (DMPL) on Wednesday said it is deferring the initial public offering (IPO) of its Philippine subsidiary amid heightened market volatility arising from a surge in coronavirus disease 2019 (COVID-19) infections.

The announcement came just as the Securities and Exchange Commission (SEC) said it “considered favorably” the IPO applications of the two real estate investment trusts (REITs) sponsored by Robinsons Land Corp. (RLC) and Megaworld Corp., subject to remaining requirements.

Del Monte Philippines, Inc. (DMPI), a company known for its tomato sauces and specialty health drinks, had aimed to raise as much as P44 billion from its IPO that was scheduled to begin on Aug. 9. It had targeted to list on the Philippine Stock Exchange (PSE) on Aug. 23.

“Amid a surge of COVID-19 cases in the Philippines and in the region, the PSE has been highly volatile in recent weeks, and the board believes that it is in the best interests of the company, its shareholders, and potential investors to defer the listing until conditions improve,” DMPL said in a statement.

The parent company said it remains “committed” to listing DMPI once conditions improve. An earlier IPO plan in 2018 was also scuttled due to volatile market conditions.

Metro Manila and nearby provinces will be under an enhanced community quarantine (ECQ) from Aug. 6 to 20, as the government tries to curb a Delta-driven spike in COVID-19 infections.

The Health department reported 7,342 new COVID-19 infections on Wednesday, bringing the total of active cases to 63,171.

“It is an option for the issuer to wait for better market conditions to do the share sale or IPO in able to optimize the valuation in terms of getting the most demand or market interest and at the most favorable price possible,” Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said in a text message.

Reuters said the Philippine bourse, which has recorded four consecutive negative weekly moves since the first week of July, losing nearly 5% in the ongoing quarter so far.

On Wednesday, the PSE index closed 0.38% up at 6,585.21, lifted by positive earnings reports.

“The Delta variant’s spread in the country is being closely monitored by market participants, and as such may affect the risk appetite of investors especially over the coming weeks,” Darren Blaine T. Pangan, trader at Timson Securities, Inc., said in a Viber message.

Mr. Pangan said investors will be awaiting news if the two-week ECQ will be extended in Metro Manila.

“The ghost month for most of August would also be a consideration for issuers amid the objective of getting the best possible demand/bids, price, and other terms for [their] respective fund-raising activities in the capital markets,” RCBC’s Mr. Ricafort said.

MORE REITS
Meanwhile, the corporate regulator approved the IPOs of REITs by Megaworld and RLC, which are both expected to be launched later this month.

Megaworld’s REIT unit will conduct its IPO from Aug. 23 to 27, while RLC’s REIT IPO will run from Aug. 31 to Sept. 8. 

Megaworld’s MREIT, Inc. will be offering to the public 1,078,000,000 secondary offer shares for as much as P22 apiece, with an overallotment option of up to 161,700,000 common shares. The offer can net up to P26.3 billion in proceeds.

MREIT is said to be eyeing to make its PSE debut on Sept. 6. The company has 10 properties in its initial REIT portfolio, which has an aggregate gross leasable area (GLA) of around 224,430.8 square meters (sq.m.).

On the other hand, RL Commercial REIT, Inc. (RCR) will be offering up to 3,342,864,000 secondary common shares for P7.31 each at most, with an overallotment option of up to 305,103,000 common shares.

It may net up to P25.88 billion in proceeds should the overallotment option be fully exercised. RCR features 14 commercial real estate assets in its initial REIT portfolio, with an aggregate GLA spanning 425,315 sq.m. The SEC said RCR aims to list at the stock market on Sept. 20.  — with Reuters

Food firms mull price hike amid import disruptions

Supermarkets have seen price increases among imported products.

By Jenina P. Ibañez, Reporter

FOOD COMPANIES are considering price hikes as global supply chain disruptions increase import costs, an industry group said.

Philippine Chamber of Food Manufacturers, Inc. (PCFMI) Legislative Committee Chair Helen Grace Baisa said that the industry has been burdened with additional costs in importing raw materials and finished food products amid delays in the supply chain.

Business groups in recent months have been flagging logistics disruptions and container shortages as industries catch up with demand from economies bouncing back from the effects of the coronavirus pandemic.

“The logistics issue has been there, but since the pandemic, shipping line and destination charges increased by four times on top of surcharges implemented locally,” Ms. Baisa said in English and Filipino in a phone interview last week.

The industry group is pressing lawmakers and the Office of the President to address exorbitant shipping charges, she said, asking that the Philippine Ports Authority or the Maritime Industry Authority regulate the fees.

Importers of raw materials, finished goods, and packaging materials have been affected by the high fees, she said. The chamber’s 107 active members include companies that manufacture and distribute dairy, coffee, canned goods, beverages, bakery products, and noodles or firms that import raw materials for food processing like probiotics and fibers.

“It adds on to our expenses, to our landed costs. Initially, we can shoulder those, but then apparently later on, we really have no choice but to pass that on to the consumers, sadly,” Ms. Baisa said.

Food companies, she said, follow price guidelines for basic goods and necessities set by the government. Trade Secretary Ramon M. Lopez last month said that requests for price hikes are being reviewed. He said that a new suggested retail price bulletin is on hold as the capital region prepares for stricter lockdown restrictions.

Raw materials and packaging prices had already risen during the pandemic, Ms. Baisa said, adding that the industry will not increase prices paid by consumers significantly.

Supermarkets have already noted price increases among imported products.

Philippine Amalgamated Supermarkets Association (Pagasa) President Steven T. Cua said that deliveries of imported goods come in fits and starts, and they are priced slightly higher when they return to the shelves. He had said that he suspects some locally produced goods could have also increased prices due to raw material import issues.

Ms. Baisa said that expanded vaccination and testing to address the coronavirus disease 2019 (COVID-19) and consistent government guidelines will help food companies recover, noting that smaller companies are affected most by the restrictions.

“PCFMI supports government initiatives to fight the challenges caused by the pandemic. We are open to dialogue and ready for collaboration in moving forward, addressing key economic issues relating to food security, food safety, affordability, and accessibility to healthier choices,” she said.

Small businesses required to file withholding tax forms online

FREEPIK

THE Bureau of Internal Revenue (BIR) is requiring even small businesses to file their withholding tax certificates online amid ongoing lockdown restrictions due to the coronavirus pandemic.

“This is to lessen face-to-face transactions with the office,” BIR Deputy Commissioner Marissa O. Cabreros said via Viber message.

Under Revenue Regulations No. 16-2021 issued on Aug. 3, the requirement to file withholding tax certificates online “shall apply to all taxpayers whether or not registered with the Large Taxpayers Service (LTS) of the BIR.”

Taxpayers are required to scan the original copies of their BIR Forms 2307 and 2316 and store such documents under the submission facilities of the BIR, with the name formats prescribed by the agency.

BIR Form 2307 is the certificate of creditable tax withheld at source, while BIR Form 2316 is the certificate of compensation payment/tax withheld.

Prior to the issuance of the regulation, only large corporations were required to file these documents online.

“RR No. 16-2021 is consistent with the BIR’s efforts to digitalize various tax filings since the additional taxpayers covered by the requirement do not have to flock to BIR offices to manually submit hard copies or DVD-R copies of said certificates. This is not only convenient for taxpayers but also safe in light of the COVID-19 pandemic,” Maria Lourdes P. Lim, a tax managing partner of Isla Lipana & Co. said in a mobile phone message on Wednesday evening.

However due to limited access to computers and internet connection for some taxpayers, Ms. Lim said the BIR should provide some leniency and not impose penalty to those who may not be able to comply immediately.

Taxpayers have increased online transactions with BIR as lockdown restrictions continued.

The Department of Finance in June said the BIR has received 1.43 million online tax returns on 2020 income from January to April 15, 2021, which accounts for 99.5% of all income tax returns. These were submitted either through the BIR Electronic Filing and Payment System and Electronic BIR Forms System.

Online submission of ITRs increased by 8.75% against the 1.315 million filed digitally last year.

Meanwhile, taxes payments settled online also remained elevated at P573 billion as of April 30. This accounted for 83% of P689 billion in collections for the year to April 15.

The agency is working on various projects to boost its digitalization, including the targeted fourth-quarter completion of its implementation of the Internal Revenue Integrated System, which is a central and repository tool to process taxpayers’ information. — Luz Wendy T. Noble

MPIC core income up 82% as industries reopen

Unprofitable warehousing operations set for ‘winding down’

By Arjay L. Balinbin, Senior Reporter

METRO Pacific Investments Corp. (MPIC) managed to increase its second-quarter core net income this year by 82% to P3.5 billion, as more industries reopened.

“This acceleration of growth reflects an improvement in performance notwithstanding the continued imposition of varying levels of quarantine across the country and was partially augmented by the impact of the Corporate Recovery and Tax Incentives (CREATE) Law, which lowered income tax rates from 30% to 25%,” the company said in a statement on Wednesday.

The company said it benefited from the gradual reopening of more industries over the past year.

It also noted that the nationwide vaccine rollout enabled more businesses to reopen.

Without providing the amounts, MPIC said Manila Electric Co.’s core net income for the second quarter increased by 29%, owing to a 19% increase in energy sold.

Maynilad Water Services, Inc. saw an 8% decrease in its core net income for the quarter due to “higher operating costs and concession amortization.”

The company also said Metro Pacific Tollways Corp. “recovered from a loss position” to P1.1 billion, as traffic on all roads improved.

For the first half, MPIC said its consolidated core net income rose 13% to P6 billion.

“Contribution from operations rose 11% to P8.5 billion and is accounted for as follows: power — P5.4 billion or 63% of the total; toll roads — P1.9 billion or 22%; water — P1.4 billion or 17%,” MPIC said.

“Other businesses, mainly Light Rail and Logistics — [saw an] overall loss of P294 million, owing to the continuing impact of the pandemic on the ridership of LRT-1 (Light Rail Transit Line 1) and the ongoing recalibration of warehousing operations; partially offset by the hospital group’s contribution of P142 million,” it added.

Consolidated reported net income attributable to owners of the parent company surged 243% to P10.4 billion because of the “gain recognized from the sale of Global Business Power and the Don Muang Tollways.”

“These asset sales underscore MPIC’s commitment to optimizing its portfolio and realizing value for its stakeholders,” the company said.

MPIC remains positive that it will be able to hit its core income guidance of at least P12 billion for 2022.

“We are confident about meeting the core guidance numbers… All our businesses are doing well, particularly the hospitals. They have already learned how to adjust to Covid,” MPIC President and Chief Executive Officer Jose Ma. K. Lim said at an online briefing.

“In the first lockdown, they were severely affected; and in fact, they lost money in most instances. But by comparison, they have recovered almost normal operations and profitability,” he added.

RESTRUCTURING
Mr. Lim said the logistics business is currently being “restructured.”

“We dropped the trucking operations and the forwarding. We found that too problematic, and now we are just winding down the unprofitable warehousing operations that we have. It is not our plan to leave logistics. Our plan is to find a stronger platform in which we can enter into the area of e-commerce where we believe the market is in great need of service,” he explained.

“We are not leaving our contracts. We are allowing the contracts to wind down,” he added.

Mr. Lim also said MPIC is already looking at some “companies” for the e-commerce plan.

MPIC also plans to hire “younger” managers in line with the company’s digitization strategy.

Meanwhile, MPIC Chairman Manuel V. Pangilinan said the group is open to increasing its support for athletes.

“Kung iaakyat natin ang ating suporta sa atleta (On whether we have to increase our support for the athletes), I think we should,” Mr. Pangilinan said.

“Are we open to getting other corporates or other parties into the equation? The answer is yes. I asked some people in many of our conversations… so that we can get more resources… Other corporates have expressed interest in participating,” he added.

MPIC shares closed 1.11% higher at P3.64 apiece on Wednesday.

MPIC is one of three key Philippine units of First Pacific, the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

SMIC ‘recovering well’ as profit surges to P20B

SM Investments Corp. (SMIC) on Wednesday said its first-half net income surged to P20.1 billion, nearly three times its P7.1-billion profit booked in the same period last year as revenues grew by four percent.

The company finished with a topline of P193.5 billion in the first six months from P185.5 billion year on year. It did not provide figures specific to the second quarter.

“Our businesses continued to perform resiliently, recovering well as conditions allowed,” SMIC President and Chief Executive Officer Frederic C. DyBuncio said in a statement.

“Our banking and residential businesses performed well as we also continued to invest in long term expansion with new stores, bank branches, residential project launches, and investments in malls,” he added.

SMIC’s banking arm made up 58% of its reported net earnings from core businesses. The company also added 22 bank branches to its network during the period.

BDO Unibank, Inc. booked profits of P21.4 billion in the first half. Its total deposits grew to P2.7 trillion on the back of a 13% growth in CASA (current account/savings account) deposits.

BDO also recorded P64.4 billion in net interest income, while its customer loans “remained flat” year on year, amounting to P2.3 trillion.

“Total provisions amounted to P6.8 billion as the bank continued to build up its buffer,” SMIC said. “This was lower than the pre-emptive provisions booked in the first half of 2020 against possible pandemic-induced delinquencies.”

China Banking Corp.’s net income for the first six months went up by 39% to P7.3 billion, while net revenues grew by 18% to P24.8 billion as net interest income and its fee-based income also improved. Its “pandemic-related credit buffers” also grew by 13% year on year to P5.4 billion.

Meanwhile, SMIC’s property segment accounted for 18% of its earnings from core businesses. SM Prime Holdings, Inc.’s consolidated net income for the January-to-June period grew by 12% to P11.6 billion, while consolidated revenues declined by six percent to P41.1 billion.

“The reported improvement is due to the continued positive performance of the group’s residential business in the first half of 2021 as well as the malls business in the second quarter of the year,” SMIC said.

SM Prime’s residential business, which accounted for 60% of consolidated revenues and is led by SM Development Corp. (SMDC), generated a three percent growth in revenues to P24.5 billion. SMDC launched two new residential projects in the first semester, bringing to the market 3,900 new units via Sands Residences in Manila and Cheerful 2 Residences in Pampanga. 

Affected by quarantine restrictions, revenues for its Philippine malls business declined by nearly 26% to P10.7 billion. Other businesses including offices, hotels, and convention centers contributed P3.1 billion to consolidated revenues.

SMIC’s retail segment accounted for 14% of its net earnings from core businesses. Retail income grew by nearly six-fold to P3.6 billion from P522 million due to cost reductions.

The company said SM Retail and its affiliates added 159 stores in the first semester.

SM Retail’s revenues for the six-month period inched down to P138.2 billion from last year’s P139.2 billion. Without disclosing specific figures, the company said revenues for its non-food segment grew by 17.8% and its call to deliver segment accounted for 13.1% of total revenues.

SMIC acquired additional shares in 2GO Group, Inc., increasing its stake in the company to 52.89% by end-June.

“We are confident of 2GO capturing a leading share in high-value activities in the growing local logistics and distribution sector and are pleased to continue to support its growth,” Mr. DyBuncio said.

SMIC said in a separate disclosure on Wednesday that its board also approved to acquire majority or around 74% of the outstanding voting capital stock of Goldilocks Bakeshop, Inc., making it an SMIC subsidiary.

“We are hopeful that the recovery momentum continues as we see more Filipinos get vaccinated,” Mr. DyBuncio said.

The company ordered over half a million coronavirus disease 2019 (COVID-19) jabs for employees and for its donation to the government.

“SM provides comfortable, convenient, safe and accessible vaccination venues all over the country,” the company said, adding that almost two million COVID-19 jabs were administered in over 60 of its malls across the country.

SMIC shares at the stock market inched down by 0.05% or 50 centavos on Wednesday, closing at P964 apiece. — Keren Concepcion G. Valmonte

Triconti partners with German firm wpd for 75-MW wind farm

ECC-ENEWABLES.COM

PROJECT developer Triconti ECC Renewables Corp. said it is teaming up with wpd Philippines, Inc. to build a 75-megawatt (MW) onshore wind farm in Aklan province that will require an investment of around P5 billion.

In a statement on Wednesday, Triconti said the project with the local unit of German firm wpd will feature 18 wind turbine generators with a capacity of 4.2 MW each.

“We estimate that project cost will be just a little over P5 billion,” Triconti Vice-President Theo C. Sunico told BusinessWorld on Viber.

The wind farm is set to break ground by the end of the year, he added.

On its website, wpd said that the facility is scheduled for commissioning by the end of 2023.

“The project is… part of a large-scale grid reinforcement and expansion for the islands of Cebu, Negros and Panay, called ‘CNP Backbone Extension.’ The wind farm will be connected to the grid via a new substation, which is being built by wpd and Triconti for the grid operator NGCP (National Grid Corp. of the Philippines),” wpd said in a statement.

Triconti Chief Executive Officer and Founder Lila Rosenberger said the wind farm comes at an opportune time, just as the country has set its sights on a transition towards cleaner energy.

“With wpd’s entry into the Aklan project, we are happy to do our part and contribute to the country’s sustainable growth and development,” she said.

Niclas Fritsch, chief executive of wpd Philippines, said the addition of the pipeline project positions the company in the country’s “dynamic and exciting” renewable energy market.

He said Aklan’s inclusion in wpd’s ventures is an important part of its strategy in Asia.

wpd is a developer and operator of wind and solar farms based in Bremen, Germany, while Triconti is a German-Swiss-Filipino joint venture based in the Philippines. — Angelica Y. Yang

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