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Funa proposes VULs be covered only by Insurance Code

THE INSURANCE COMMISSION (IC) said variable insurance products should be considered as life insurance products alone, and not as securities covered by collective investment schemes (CIS) to prevent a rise in premiums for consumers.

The insurance and investment components of a variable unit-linked (VUL) product are recognized as “indivisible” and cannot be considered separate components, Insurance Commissioner Dennis B. Funa said in a statement issued by the Department of Finance (DoF).

In his letter to Finance Secretary Carlos G. Dominguez III, who also heads the Capital Market Development Council (CMDC), Mr. Funa said VULs are sold as a single product because “the investment component of the life insurance policy, unlike other investment products, cannot be acquired by itself.”

“Being an indivisible insurance product, it is our position that the insurance and investment components of a VUL product should be regulated and supervised under a single regulatory framework, i.e. the Insurance Code,” he said.

Mr. Funa said including VUL products in the list of CIS would subject them to two regulatory frameworks: the Insurance Code and the proposed single CIS framework that lawmakers are working on.

He warned this would add more operational costs that could lead to an increase in premiums and make VULs less attractive to potential customers.

“[This] would cause a decline in insurance penetration and hamper the efforts of improving financial inclusion in the country as the public would be discouraged from availing themselves of expensive financial products,” said Mr. Funa.

VULs are life insurance policies that have insurance benefits and an investment component. CIS are arrangements like mutual funds where funds are being pooled to be invested, re-invested or traded in securities and other assets.

Mr. Funa said regulatory systems under the Insurance Code are sufficient to protect policyholders of VULs.

In case that VUL products will still be considered as a collective insurance scheme, he said the IC would continue to “administer, supervise, and regulate the VUL in accordance with the Insurance Code,” as recommended by the DoF.

House Bill 310, pending at the committee level of the House of Representatives, aims to harmonize regulatory and tax systems for all types of CIS products as the country officially joins the ASEAN CIS Framework.

Philippine Life Insurance Association, Inc. President Benedicto C. Sison said the industry supports the IC position, noting the investment component of a VUL cannot be detached from the insurance policy since expiration of the contract also terminates the investment portion.

“VULs’ investment funds are not offered to the public, apart from the VUL insurance contract. This alone already makes them fall out of the definition of CIS found in the CIS bill. VULs are sold by licensed insurance agents based on the insurability and needs of the person to be insured… It is not enough that the prospective policyholder has money to invest — he must be insurable to be eligible for a VUL,” Mr. Sison said in an e-mailed response to queries on Monday.

He said VULs also have unique features that make them distinct from CIS, such as insurable interest, guaranteed benefits, ownership and lapsation.

Further, he said agents selling VULs are also required to obtain an additional license on top of their basic license to sell traditional insurance products, which will make a third licensing requirement from the SEC “superfluous” and an additional cost burden.

“The bills create a superfluous operational burden that is detrimental to the insuring public because it results in additional costs and over-regulation. Why fix something that is not broken?” Mr. Sison added. — Beatrice M. Laforga

Sia’s DoubleDragon, other listed firms post gains

THREE listed companies chaired by Edgar “Injap” J. Sia II posted profit and revenue gains in the first semester, according to separate regulatory filings on Monday, ahead of what he called “coming positive cycle” post-pandemic.

“Our whole team will continue to be relentless in our pursuit to make all the business units and brands under MerryMart Consumer Corp. and DoubleDragon Properties Corp. well-loved household brands serving all its stakeholders and for both to become major contributors to our economy in the years to come,” Mr. Sia said in a MerryMart statement.

DoubleDragon saw its core net income for the six-month period surge by 543% year on year to P3.72 billion as consolidated revenues inched up by nearly two percent to P2.69 billion, excluding one-off fair value gains.

The listed real estate developer said its recurring revenues also grew to P1.99 billion for the first semester, up by 5.96% from P1.88 billion. This was due to the almost six percent growth in rental income to P1.71 billion from P1.61 billion in the same period last year.

“We are determined to cause DoubleDragon to soon become an active contributor in the rebuilding of our new economy, and to become a major beneficiary in the next coming positive cycle post this unprecedented global pandemic,” Mr. Sia said in a DoubleDragon statement.

Its 43 commercial centers across the country are said to maintain an 89.58% occupancy rate as most of its leasable space in CityMalls cater to essential services like supermarkets, pharmacies, clinics, and banks.

Meanwhile, the company said rooms in Hotel 101–Manila was 92.93% occupied in the first semester.

Its real estate investment trust (REIT) office portfolio, on the other hand, has maintained a 97.72% occupancy rate. The company said the office sector continues to be stable.

In a separate disclosure, listed DDMP REIT, Inc. said it generated a net income of P1.84 billion in the second quarter, up by nearly four-fold quarter on quarter from P399.65 million. Its rental and CUSA (common use service area) income inched up by 7.69% to P547.70 million from P547.7 million in the previous quarter.

Meanwhile, DoubleDragon will be ending the year with 1.2 million square meters (sq.m.) of leasable space under its portfolio following the completion of CentralHub Tarlac’s Phase 3. The development added 10,646 sq.m. to its portfolio.

DoubleDragon, in tandem with Jollibee Foods Corp., will also be launching the country’s “first and largest” industrial REIT in 2022 through its leasing arm CentralHub Industrial Centers, Inc. The announcement was made in early July.

GROCER KEEPING EYES OPEN FOR M&A
Listed grocery operator MerryMart said its consolidated net income posted a 20.09% growth to P16.4 million in the first half of the year, up from its P13.67-million profit logged in the same period last year.

MerryMart’s consolidated revenues, on the other hand, went up by 12.34% to P1.84 billion from P1.64 billion.

The MerryMart group has 41 operational stores across the country. The consolidation of pharmacy chain Carlos Drugs-Lucena, Inc.’s Carlos SuperDrug 27 branches would bump up MerryMart’s network to 68 stores nationwide.

“MerryMart will continue to keep its eyes open for merger and acquisition (M&A) opportunities in both the grocery and pharmacy space that would accelerate its growth and allow it to capitalize on the continued consolidation from traditional to modern retail in the Philippines,” Mr. Sia said in a MerryMart statement.

It now has a 10,764 sq.m. central distribution center in CentralHub Tarlac, which has the capacity to hold up to 12,000 pallets and serve over 100 MerryMart stores of various formats.

“This will be our template format for all our distribution centers in the pipeline as well as MerryMart Wholesale Club, which we expect will bring in a completely new stream of revenues since it is tapping into a larger market that we have yet to fully capture,” MerryMart Chief Financial Officer Hannah Yulo-Luccini said.

MerryMart has various store formats under its belt, namely: MerryMart Store, MerryMart Market, MerryMart Grocery, MerryMart Wholesale and Dark Groceries. MerryMart wants to have P120 billion in system-wide recurring consumer sales revenues by 2030.

Under “Vision 2030,” MerryMart is also aiming to have 1,200 stores across the Philippines and a 5,000-wide MBOX smart locker network. MBOX Smart Lockers are the first product under its consumer technology portfolio with a new subsidiary, MM Consumer Technologies Corp.

Shares of DoubleDragon Properties went up by 1.39% or 14 centavos on Monday to close at P10.24 each, while shares of DDMP REIT closed unchanged at P1.77 apiece.

Meanwhile, MerryMart stocks were down by 3.40% or 12 centavos to close at P3.41 each. — Keren Concepcion G. Valmonte

ABS-CBN narrows net loss to P1.4B after cutting expenses

PHILIPPINE STAR/ MIGUEL ANTONIO DE GUZMAN

ABS-CBN Corp. managed to trim its second-quarter attributable net loss to P1.4 billion from a loss of P3.2 billion in the same period a year earlier, as the media company continues to cut expenses.

ABS-CBN’s total revenues for the second quarter declined 10.6% to P4.2 billion from P4.7 billion previously, the company’s quarterly report shows.

But its gross profit for the quarter increased 51.9% to P425.8 million from P280.2 million in the same period in 2020 after it cut its production costs, cost of services, and cost of sales.

The company trimmed its second-quarter general and administrative expenses to P1.9 billion, compared with the P3.2-billion expenses previously.

For the first half of the year, ABS-CBN’s revenues dropped 38.3% to P8.2 billion from P13.3 billion in the same period last year.

ABS-CBN’s first-half gross profit decreased 85% to P429.7 million from P2.9 billion a year ago.

Its general and administrative expenses for the period narrowed to P3.8 billion from P6.3 billion in the previous year.

ABS-CBN posted a first-half attributable net loss of P3.4 billion, compared with a loss of P3.9 billion in the same period in 2020.

“Following the events of the franchise denial and the impact of [coronavirus pandemic], the company enforced stringent cost-cutting measures to further manage [its] financial performance,” ABS-CBN noted.

Last year, after being denied a broadcast franchise, ABS-CBN entered into an agreement with its existing lenders “to provide for the creation of a mortgage and security interest over certain assets of the company, the opening and maintenance of debt service reserve account, pre-payment of the P4 billion of its loans, and an amendment of existing loan agreements.”

It said the lenders agreed that “upon satisfaction of the necessary conditions under the Omnibus Security and Intercreditor Agreement and during the effectivity period of the standstill…, it shall not declare an event of default to the extent that it relates to the Franchise Expiration Default.”

“On May 31, 2021, all the conditions specified in the Omnibus Security and Intercreditor Agreement were satisfied and accordingly, the Standstill Effective Date Notice was executed by all parties,” it added. — Arjay L. Balinbin

DITO CME net income drops over 70% as expenses soar

BW FILE PHOTO

DITO CME Holdings Corp.’s second-quarter attributable net income fell 70.8% to P8.1 million from P27.5 million in the same period last year, mainly due to higher expenses.

The listed holding company’s total expenses for the quarter jumped to P18.6 million from measly P555,877 in the same period in 2020, it said in a disclosure to the stock exchange on Monday.

The company’s non-operating income for the quarter went up 11% to P32.2 million from P29.1 million in the same period last year.

For the first six months of the year, DITO CME’s net income attributable to parent equity holder decreased 70.5% to P16.3 million from P55.3 million previously.

Total expenses for the first six months ballooned to P35.8 million from P1.6 million in the previous year.

Its first-half non-operating income grew 4.6% to P61.2 million from P58.5 million in the same period last year.

“The company earned interest income from its advances from its outstanding receivable from Udenna Corp. Group and investments totaling to P54.6 million and P29.3 million in 2021 and 2020, respectively,” DITO CME said.

“On the other hand, expenses incurred had increased… mainly due to additional professional fees and salaries paid in 2021 as compared to 2020,” it added.

DITO CME shares closed 1.68% lower at P7.63 apiece on Monday. — Arjay L. Balinbin

Hyundai sales dip; demand for commercial vehicles up

HYUNDAI PHILIPPINES FB PAGE

HYUNDAI Asia Resources, Inc. (HARI) sales in the seven months to July declined 18% from the same period last year, while commercial vehicle sales remained strong amid growing business logistics requirements.

The local distributor of the global brand sold 7,008 vehicles for the January-to-July period from 8,542 a year earlier.

On a month-on-month comparison, Hyundai’s total July sales had inched up 4.1% to 845 units from 812 in June.

“The growth in sales was brought about by Commercial Vehicles (CV), which saw a remarkable increase of 232.1% in July versus the previous month, offsetting the slight decline in Light Commercial Vehicles, which dropped by -12.1%,” the company said in a report on Monday.

Hyundai trucks, the company said, is being used by last mile logistics providers and government agencies.

As of July, commercial vehicle sales went up more than 446% to 852 units year on year.

In contrast, segments that make up a bigger share of the company’s sales declined during the same period. Light commercial vehicle sales dropped 26.7% to 3,177 units, while passenger car sales fell 26.5% to 2,979 units.

Month on month, light commercial vehicle sales dropped 12.1% to 340 units in July, while passenger car sales inched up 3.8% to 412 units.

Imported vehicle sales in the first half of 2021 went up by 55% to 30,153 units compared with the figure in the same six months last year, the Association of Vehicle Importers and Distributors, Inc. (AVID) said. The industry group accounts for 21 members carrying 26 global brands.

HARI last month launched its trucks and buses dealership showroom in Cebu. The 2,000-square-meter space is owned and operated by Hyundai Cebu, Inc. (HCI), one of HARI’s commercial vehicle dealerships. — Jenina P. Ibañez

PhilWeb trims losses, cites remote gaming

PHILWEB Corp. narrowed its attributable net loss to P29.87 million in the second quarter from P37.63 million a year ago, as remote gaming provided revenues when lockdown measures led to the temporary closure of its sites.

“Our Q2 (second quarter) results were due to the loss of revenues from temporary site closures brought about by the tighter quarantine measures,” PhilWeb President Edgar Brian K. Ng said in a press release on Monday.

He added that the firm’s remote gaming platform, which was launched at the end of March, gave PhilWeb and its business partners a “continuing source of gaming revenues” amid the closure of its brick-and-mortar gaming venues for most of the quarter. The new platform holds a license from the Philippine Amusement and Gaming Corp.

“We were pretty much in a similar situation last year, but our EBITDA (earnings before interest, taxes, depreciation, and amortization) losses are narrower due to remote gaming; we’ve managed to bridge the quarter without the need for external funding,” Mr. Ng said.

In its quarterly report filed last week, PhilWeb said revenues in the three months ending June reached P96.80 million, up by more than 110 times compared with the year-on-year level of P878,760.

PhilWeb’s earnings came from its gaming application services business and income from commissions.

PhilWeb is accredited by the government gaming regulator. its subsidiaries include BigGame, Inc.; e-Magine Gaming Corp.; and PhilWeb Asia-Pacific Corp.

The company’s shares shed 1.76% or four centavos to finish at P2.23 apiece on Monday. — Angelica Y. Yang

Cirtek lists 249M common shares, to issue warrants

CIRTEK Holdings Philippines Corp. has listed 249.44 million common shares in the local bourse, and will issue bonus detachable warrants of the same number, the company said on Monday.

In a press release, Cirtek Holdings said that the common shares sold through a stock rights offer are at an offer price of P5.50 per entitlement right each. The company set the ratio at one entitlement right for every 1.68 common shares.

Meanwhile, the company said that it is also issuing bonus detachable warrants which are free-of-charge to the investor. “[The warrants] shall be issued as part of the subscription to the entitlement rights,” it added.

A bonus detachable warrant comes at an exercise price of P5.50.

“The company intends to use the proceeds from the offer to partially retire its short-term obligations and refinance working capital of its subsidiaries, namely Quintel USA, Cirtek Electronics Corp. (CEC) and Cirtek Advanced Technologies and Solutions, Inc.,” Cirtek said.

Cirtek is a holdings company primarily engaged in the manufacture and sale of semiconductor packages, the manufacture of highly integrated technology products and the delivery of antenna solutions.

Previously, Cirtek announced that it was open to list its unit Quintel USA, Inc. in the US-based stock exchange Nasdaq through an initial public offering.

The firm earlier reported a second-quarter attributable net income of $2.31 million, up by around 70% versus $1.36 million in the same period last year.

Cirtek shares went down by 2.13% or 10 centavos to finish at P4.60 apiece on Monday. — Angelica Y. Yang

CLI bullish on hotel business

CEBU LANDMASTERS, Inc. recently launched Abaca Resort Mactan. — COMPANY HANDOUT

By Keren Concepcion G. Valmonte, Reporter

CEBU LANDMASTERS, Inc. (CLI) said it remains bullish on its hotel business as it anticipates a strong recovery in the tourism and travel sectors over the next three to four years.

This as the listed developer reported a 66% increase in its net income to P1.32 billion in the first six months of 2021, keeping CLI on track to exceed its growth targets.

“As we know, it’s one of the challenging industries today but we’ve timed the delivery of our hotels to be completed by 2023, 2024, and 2025, which we really feel there’s going to be a very strong tourism recovery,” CLI Chief Operating Officer Jose Franco B. Soberano said during an online briefing on Monday.

CLI said it expects to operate 1,433 rooms in its hotel portfolio by 2025, with seven hotel development projects in the pipeline.

The Visayas-Mindanao-based property developer entered the hospitality segment nearly two years ago. Developed in partnership with The Ascott Ltd., CLI’s Citadines Cebu City started operations in September 2019. It has 130 rooms available, with 50 more rooms underway.

“CLI’s strategy with its hospitality business is really brand. We will partner with global brands to deliver a global network and a global standard of excellence,” Mr. Soberano said.

The company partnered with The Ascott on three more of its hotel projects.

Lyf Cebu City is expected to be completed by 2022 and will add 159 hotel rooms to its portfolio. Citadines Bacolod City will open its doors by 2023 with 200 hotel rooms, while Citadines Paragon Davao is slated for completion in 2024 with 263 rooms.

CLI also inked a management contract with the Radisson Hotel Group for the first Radisson RED in the country, which will have 144 rooms. It is expected to be completed by 2023.

Meanwhile, its recently launched Abaca Resort Mactan will be operated by the Abaca group. The luxury boutique hotel will feature 125 rooms and is slated for completion in 2024.

CLI also has two development projects to be operated by French multinational hospitality group Accor S.A. Patria de Cebu’s Mercure Cebu Downtown will add 167 hotel rooms to CLI’s portfolio and Sofitel Cebu will contribute 195 hotel rooms. Both developments are expected to be completed by 2025.

“We have a chance to design these hotels in the best and healthiest environment possible,” Mr. Soberano said.

CLI said it is looking forward to see how its hotel projects will complement its existing businesses, as most of it are attached to its business developments.

Latitude Corporate Center was completed during the first six months, adding 13,000 square meters (sq.m.) of gross leasable area (GLA). It now has a GLA of 29,051 sq.m.

The company said it might consider entering the real estate investment trust market with its hotel and mixed-use developments.

“Not immediately, but certainly a strategy that we’re looking at in the mid- to long-term,” Beauregard Grant L. Cheng, chief finance officer of CLI, said.

The company now has 40 completed projects in total, while 36 more developments are underway and 14 are in the pipeline.

Six residential projects in Cebu, Iloilo, and Ormoc worth P11 billion were launched in the January-to-June period across its economic, mid- and high-end brands. 

“We intend to continue benefitting from our core business — housing — while preparing for new opportunities that global recovery and tourism will bring,” CLI President and Chief Executive Officer Jose R. Soberano III said in a statement on Monday.

CLI’s net income to parent surged by 66% to P1.32 billion in the six-month period from last year’s P792 million as sales in its real estate developments grew. 

The company’s topline grew to P5.1 billion, 46% higher than the P3.5-billion logged in revenues in the same period last year. CLI’s economic housing brand Casa Mira posted the highest growth with 206% due to higher sales and continued construction.

CLI said construction activity in its project sites stood at an average of 97%, especially in projects located in Cebu, Dumaguete, and Bohol.

The company saw reservation sales jump 12% to a record P8.3 billion in the first half, after it launched six residential projects in Cebu, Iloilo and Ormoc.

“We spot opportunities in the middle of all these challenges. The low-interest rate environment and tax measures that favor mid- and economic home buyers inspire us to persist in executing our project plans with agility and excellence. We are anticipating to exceed our year-end guidance by the end of the year,” Mr. Soberano said.

SSI cuts losses, stays positive amid lockdown

LISTED SSI Group, Inc. reported in a regulatory filing on Monday that its total comprehensive loss amounted to P74.15 million for the second quarter, 87% lower than the P585.63-million loss incurred in the same period last year.

“While we began the second quarter with a two-week enhanced community quarantine (ECQ) in April that caused the closure of our brick-and-mortar stores, followed by a four-week modified enhanced community quarantine, sales for the second quarter increased by 294% year on year,” SSI President Anthony T. Huang said in a statement.

The company recorded sales amounting to P2.90 billion, up from P737.89 billion. Its total revenues stood at P2.91 billion for the quarter ending June, nearly three times last year’s P742.78 million.

SSI incurred a recurring loss of P2.8 million in the second quarter.

Meanwhile, its total comprehensive loss for the first semester was down by almost 64% to P173.58 million from P477.34 million. Its recurring loss for the six-month period amounted to P88.7 million.

The company’s sales went up by 28% year on year to P6.42 billion from P5.02 billion. Total revenues grew by 28% to P6.43 billion from P5.04 billion previously.

“The group’s performance during the first half of the year reflected the resilience of SSI’s core customer base, and the pace at which demand, especially for premium and high-end products, is able to recover,” Mr. Huang said.

SSI said its e-commerce sales via trunc.ph, bananarepublic.com.ph, beautybar.com.ph, dunelondon.ph, gap.com.ph, lacoste.com.ph, lush.com.ph, marksandspencer.com.ph, superga.ph, zara.com/ph, payless.ph, and other third-party marketplaces also went up by 298%.

The company said it entered August with a good sales momentum recorded in June and July. It remains optimistic despite the reimposition of ECQ.

“We now have several very clear examples of how quickly our different categories can bounce back when our stores are open and COVID cases are relatively controlled,” Mr. Huang said.

“We will be leveraging on this knowledge and on initiatives meant to optimize our store network, our cost base and to expand our digital channels as we navigate through the rest of 2021,” he added.

On Monday, shares of SSI at the stock exchange declined by 3.57% or four centavos to close at P1.08 each. — Keren Concepcion G. Valmonte

Singer Julie Anne to star in a three-part virtual concert

LIMITLESS, A Musical Trilogy is set to unveil the different facets of Julie Anne San Jose as a singer, songwriter, dancer, actress, and instrumentalist.

SINGER-songwriter and actress Julie Anne San Jose has traveled around the Philippines in order to share music with various communities in a virtual reality concert, Limitless, A Musical Trilogy via GMA Synergy.

The three-part musical journey is set to unveil different facets of Ms. San Jose as a singer, songwriter, dancer, actress, and instrumentalist. The show is set in various locations in Luzon, Visayas, and Mindanao. The first leg, which premieres on Sept. 17, was shot in Mindanao.

“Each of us is still trying to deal with the trying times and to be able to produce a musical trilogy like Limitless and to have it seen by people not only here in the Philippines but in every part of the world, is something I hope will inspire everyone to keep on seeing the good things around us,” Ms. San Jose said in a statement.

“It is just timely and fitting that Julie will now be called the ‘limitless star’,” said Oliver Victor B. Amoroso, First Vice-President and Head of Regional TV & Synergy at GMA Network, Inc., at an online press conference on Aug. 12 held via Zoom. “Itong Limitless: A Musical Trilogy, ginawa ito para kay Julie (The Limitless: A Musical Trilogy was made for Julie). It was presented to her, and we are very happy that she went on board.”

Ms. San Jose was recently featured on a digital billboard at the iconic Times Square in New York City for Spotify’s EQUAL campaign, which encourages users to listen to amazing women from all around the world.

At her young age (she is 27) Ms. San Jose is a true showbiz veteran — she started her career at the age of three in the children’s educational show Batibot, and went on to becoming a member of the children’s music group Sugarpop which released albums, had a TV show, and regularly performed on TV variety shows. In 2010 she went solo, honing her talent on GMA-7’s show Party Pilipinas, where she sang and made music videos and short films. In the years that followed, she released albums, held concerts, and acted in shows like primetime drama series Kahit Nasaan Ka Man and the daytime musical series My Guitar Princess. Her debut album, Julie Anne San Jose, earned her a Diamond record, making her the youngest recipient of the award as she was only 18 at the time. Her second album, Deeper, earned a Triple Platinum Award.

Her last live concert before the pandemic struck was, Julie Sings the Divas in 2019. And now she is taking her concert prowess online.

Directed by Paolo Valenciano, Limitless, A Musical Trilogy is produced by GMA Synergy. This is the team behind the Philippines’ first-ever virtual reality concert, Alden’s Reality: The Virtual Reality Concert, which was held in Dec. 2020 and which is now a finalist at the New York Festivals Awards.

Mr. Valenciano said that their team thought of the virtual reality concept in order to share music with small communities outside of the usual recording and performing in front of a camera during an online concert.

“We just wanted to create something that would speak to everyone, whether you’re a Julie fan or not, we want that real connection with actual people,” Mr. Valenciano said, adding that it was the first time in over a year that they heard fans scream when they saw the artists.

“A part of the magic of a concert is hearing everyone aligned, everyone just having that same energy. We wanted to sort of capture that even though our audience was only 10 people. We wanted to capture that, then we felt that, that was something that could inspire our audience [online],” he added.

Myke Salomon is the show’s musical director, with JC Gellidon as the director of photography.

For the first show in the trilogy, Ms. San Jose will be joined by Christian Bautista and The Clash alumnus Jong Madaliday. The song lineup includes new original songs, personal favorites, and covers. The concert will include footage of Ms. San Jose recalling her journey as an artist, from how she started in the industry, and why she began songwriting.

“[For me], this is more than just another online show,” Ms. San Jose said. “It’s something really personal to me because I’m sharing a piece of my heart.  I don’t think I’ve ever been this vulnerable and open to, you know, to people through our show.”

Limitless, a Musical Trilogy premieres on Sept. 17. Tickets are available at www.gmanetwork.com/synergy and are priced at P599 (general admission); P1,499 (Synergy Pass GA); P1,199 (VIP); and P3,299 (Synergy Pass VIP). Special merchandise awaits ticket buyers who purchase the VIP and Synergy Pass VIP. — Michelle Anne P. Soliman

Filinvest REIT says POGO tenants fell in first half of 2021

Filinvest REIT Corp. manages a portfolio of 17 office buildings, of which 16 are located in Northgate Cyberzone, Filinvest Corporate City in Muntinlupa. — COMPANY HANDOUT

FILINVEST REIT Corp. (FILREIT) said the number of its Philippine Offshore Gaming Operator (POGO) tenants declined in the first semester, after the pre-termination of their leases.

The company said its overall occupancy rate by the end of the first semester stood at 89%, with POGO tenants now making up 1.5% from 2.8% previously. 

“The company anticipated and forecasted the decline due to the further reduction of its remaining POGO tenants,” FILREIT said in a statement.

FILREIT said it ended the period with business process outsourcing (BPO) firms making up for 90% of its tenants, describing the sector as resilient. It added that regional operating headquarters will also form part of its tenant base to replace POGO firms.

“New multinational BPO tenants and ROHQ (regional operating headquarters) are taking up the vacated spaces, albeit with delays due to ECQ (enhanced community quarantine) restrictions,” the company said.

FILREIT manages a portfolio of 17 office buildings with over 300,000 square meters. Sixteen of these buildings are located in Northgate Cyberzone, Filinvest Corporate City in Muntinlupa.

FILREIT’s net income for the second quarter declined by 12% to P411.18 million from last year’s P467.92 million.

Its topline dropped by nine percent to P949.17 million in the second quarter from P1.04 billion a year ago. Rental revenue income amounted to P688.08 million, sliding eight percent from P746.61 million a year ago. 

However, its net income for the six-month period grew by eight percent to P1.05 billion, driven by lower provisioning for taxes as some projects were transferred to parent firm Filinvest Land, Inc.

“We are pleased with the results of our first-half performance considering the general economic climate,” Lourdes Josephine Gotianun-Yap, chairperson of FILREIT, said in a statement.

Revenues for the period declined by 13% to P1.96 billion in the first half. FILREIT’s rental revenue reached P1.4 billion, sliding 8.4% year on year. — Keren Concepcion G. Valmonte

PetroEnergy profit soars as power sales rise

PETROENERGY Resources Corp. said its second-quarter attributable net income rose by more than three times to P128.16 million after recording higher electricity sales and oil revenues.

In its quarterly report filed with the local bourse on Monday, PetroEnergy said its total revenues amounted to P611.98 million, higher by around 16% compared with the value in the second quarter of 2020.

Sales from its electricity segment in the three months ending June improved by 13% to P515.39 million from P456.78 million a year ago.

Meanwhile, the firm’s oil revenues in the second quarter reached P96.59 million, up by 39% versus the P69.45 million recorded in the same period last year.

PetroEnergy added that its after-tax net income during the quarter hit P216.14 million, over two times its previous level of P103.03 million.

It is engaged in petroleum production through the Etame consortium in the African country of Gabon; and in renewable energy in the Philippines through its subsidiary PetroGreen Energy Corp.

PetroEnergy President Milagros V. Reyes said during the annual stockholders meeting last month that the company will be focusing more on the power generation business, adding that it aspires to become one of the most profitable publicly listed energy firms in the Philippines.

Shares of PetroEnergy inched up 0.51% or two centavos to finish at P3.95 apiece on Monday. — Angelica Y. Yang

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