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CSR efforts look within amid the pandemic

Companies have sharpened the focus of their corporate social responsibility (CSR) initiatives amid the pandemic, with their charitable efforts built into business operations or aimed at immediate communities.

“We first made sure that the health and job security of our employees are okay,” said Anna Legarda-Locsin, Procter & Gamble communications head, during a CSR summit organized by World Vision. The multinational corporation then used its manufacturing plant in Cabuyao, Laguna, to produce face masks.

Conduent, a Pasay City–based business process outsourcing company donated over 80 computers and servers to educational institutions in its neighborhood: Pasay City Science High School; Pasay City East High School; and the Technological University of the Philippines.

Quarantine restrictions posed difficulties. “In the past, employees volunteered to deliver the computers themselves. Nowadays, we can’t have big groups,” said Pamela Donato, Conduent’s human resources country lead.

To scale up individual CSR efforts, the Philippine Disaster Resilience Foundation (PDRF) determined the most pressing needs of the hour, aligned its projects, and coordinated the efforts of the private sector. “We looked for partners to help us. It is absolutely important to partner with others to leverage resources,” said Guillermo Luz, PDRF chief resilience officer and advisor. Active listening, he added, ensures that CSR initiatives match on-the-ground needs.

Jun Godornes, director of the World Vision Development Foundation, said that doing good has a cascading positive effect and that the pandemic has only highlighted the inextricable connections we have with each other: “When we look after the welfare of others, we secure ours. Doing good never goes out of style.” — P. B. Mirasol

A connected path towards digitization

By Bjorn Biel M. Beltran, Special Features Assistant Editor

Never in recent memory has the established paradigms of society changed as quickly as with the COVID-19 pandemic. The reality of the crisis has virtually shunted the world into a new era, one championed by digital technologies and innovation.

In the world of business, what exactly has changed, and what, if anything, was left the same? The second leg of the BUSINESSWORLD INSIGHTS Online Forum Series on Connectivity tackled this issue with the theme, “The Connected Path: A Guide to Digital Transformation of Government and Businesses”.

“In the last seven months, we have all experienced what this pandemic has brought us. It has decimated businesses, destroyed jobs, wiped away years of economic gain,” AMTI EVP for Technology, Sales and Marketing Digital Transformation Executive Sponsor Bong Paloma began in his opening remarks.

Mr. Paloma said that the pandemic brought to mind the villain Thanos in the blockbuster movie, Avengers: Infinity War, bringing individuals, communities, countries and organizations to their knees with a snap of a finger.

“We do live in unprecedented times. Thankfully, we are here today living in the ‘new normal’, albeit virtually and digitally,” he said, adding that it is thanks to digital transformation that things still seem to have some semblance of normalcy.

Digital transformation, he explained, is the integration of digital technology into all areas of a business, fundamentally changing how the business operates and delivers value to its customers. It is also a cultural change that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure. Changes which organizations have been forced to face to survive in the current climate.

“Digital transformation was already underway in a significant way before COVID started. It was underway on a global level and a local level, for large companies as well as small companies, in developed markets as well as we know more than anyone, in emerging markets,” PayMaya Philippines Chief Operating Officer Paolo Azzola said.

“COVID-19 was the single largest catalyst for digital transformation that we’ve ever seen,” Mr. Azzola said.

Both Mr. Azzola and GCash Chief Commercial Officer Frederic Levy recognized the massive surge in adoption of their digital payment platforms as Filipinos adapt to a new ‘stay at home lifestyle.’

Mr. Levy pointed out that GCash has seen up to 1000% year-on-year growth in transactions, more than a trillion pesos in cashless transactions.

“This is actually two times higher than our past three years combined. We talk a lot about the ‘diskarte‘ of Filipinos during this time. This figure shows that Filipinos are jumping at digital adoption and embracing it,” he said.

Local governments are also accelerating adoption, Mr. Azzola said, even enforcing and encouraging the use of cashless payment platforms over ones done with cash.

“If there is a silver lining anywhere for tech-oriented companies in this very challenging moment, it is that digital transformation has happened at an unprecedented pace. In the Philippines, we’ve seen companies that were previously keen on embracing digital payments, suddenly, these guys were in the drivers’ seat, and they were able to effect change at a faster pace than ever before,” he said.

Shiju Varghese, country head for Tata Consultancy Services, Inc., noted that many companies all over the world — from the US, Europe, to Asia — are retaining and even increasing their budget for new technologies despite the budget and revenue crunch brought about by the pandemic.

The most common form of digital adoption is in support of remote working models and collaborative technologies such as Zoom. More than half of executives that they had surveyed are also looking into improving their cybersecurity and making their clouds more resilient.

“Organizations thus recognize these technologies as critical for resilience in the face of this pandemic and that digital capabilities will continue to be essential in the post-pandemic world,” Mr. Varghese said. “But the accelerating transformation that is underway is not only about performing better during the pandemic. The changes will endure over the long term.”

Facing all these changes, Mr. Paloma had this to say, “Let us look ahead, move forward, and carry on. Let us drive change instead of being driven by it.”

#BUSINESSWORLDINSIGHTS Connectivity Series is made possible by Tata Consultancy Services, Globe, AMTI, Dell Technologies, PLDT, Smart, The Philippine STAR, and Olern; with the support of the Philippine Chamber of Telecommunications Operators, Management Association of the Philippines, Bank Marketing Association of the Philippines, British Chamber of Commerce Philippines, Financial Executives Institute of the Philippines, Philippine Association of National Advertisers, and Philippine Chamber of Commerce and Industry.

Banks’ recovery seen beyond 2022

S&P Global Ratings expects the Philippine economy to contract by 9.5% this year. — PHILIPPINE STAR/ MICHAEL VARCAS

By Luz Wendy T. Noble, Reporter

THE Philippine banking industry may recover to pre-pandemic financial strength after 2022, although this will depend on the extent of the economic fallout from the coronavirus crisis, S&P Global Ratings said.

At the same time, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said the local banking industry continues to have sufficient buffers to ensure its stability amid the crisis.

“The BSP’s stress tests point to favorable banking system prospects amid risks. Results show NPLs (nonperforming loans) will remain manageable, CARs (capital adequacy ratio) will stay above the 10% requirement, liquidity will be sufficient, and profitability will stay intact,” Mr. Diokno said in a speech at Standard Chartered Bank’s Sovereign Investor Forum held on Oct. 15.

S&P said downside risks dominate the Asia-Pacific banking industry for the rest of the year, as recovery will likely be slow and uncertain.

“The Philippine banking sector’s recovery to pre-COVID levels will stretch beyond 2022 like Australia, Japan and Indonesia, noting Philippine banks’ fairly strong performance prior to the crisis,” S&P analyst Nikita Anand said in an e-mail to BusinessWorld on Monday.

In a separate note, S&P said banks in China, South Korea, Singapore and Hong Kong may be among the first to recover to 2019 financial strength, but not before end-2022.

“We anticipate much uncertainty on the recovery pathway. A banking sector revival will not just depend on the economic recovery occurring broadly in accordance with our base case. Also key is the nature and extent of the economic damage affecting firms and households prior to the onset of the economic recovery, and the extent to which this will hit banks,” the debt watcher said.

For the Philippines, S&P reiterated that the economic risk trend for banks has turned negative.

“We believe the risk of credit losses soaring for Philippine banks is higher than we previously expected, given our view that the economy will contract 9.5% in 2020, compared to our earlier forecast of a 3% dip. In our opinion, weak economic activity and tough employment conditions will dilute the Philippine banking sector’s asset quality, earnings, and capitalization over the next two years,” S&P said.

This year, S&P expects the country’s gross domestic product (GDP) to contract by 9.5%, before growing by 9.6% in 2021. This compares with the government’s projection of -4.5% to -6.6% for 2020 and a growth of 6.5% to 7.5% next year.

“If the recession were more severe than our current expectation of 9.5% contraction or lasts longer, then it could cause further deterioration in banks’ financial profiles,” Ms. Anand said, noting stress in large corporates may further weaken banks’ asset qualities although it is not a base case scenario.

On the other hand, a faster rebound in consumption could accelerate the banking sector’s recovery, she added.

S&P last week revised its outlook to “negative” from “stable” for Bank of the Philippine Islands and Security Bank Corp., suggesting a rating downgrade within the next six months to two years.

“In our base case, credit costs (the ratio of provisions for bad loans to total loans) will stay elevated at 1.5%-2% in 2020 and 2021,” S&P said. “We estimate nonperforming assets (including restructured loans) for the sector could rise to 5.5%-7.5% of total loans, from 4.6% as of August 2020).”

Latest BSP data showed gross bad loans climbed 35% to P305 billion in August from P225.904 billion a year ago due to the impact of the pandemic on households and businesses. This caused the NPL ratio to hit 2.84%, the highest since the 2.87% logged in February 2014.

“We may see an uptick in the NPL ratio in the coming months as a result of the crisis, but we expect the increase to be manageable,” Mr. Diokno said.

He also noted NPL coverage ratio stood at 107.4% as banks beefed up loan loss provisions.

The local industry’s NPL ratio peaked at 17.6% in 2002 in the aftermath of the Asian financial crisis. The BSP expects the industry’s bad loan ratio to reach 4.6% by end-2020.

Mr. Diokno said banks’ capitalization is its safeguard despite headwinds caused by the pandemic.

The local banking industry’s capital adequacy ratio was at 15.3% on a solo basis and at 15.9% on consolidated basis as of end-March, going beyond the 10% minimum set by the BSP and the 8% under Basel requirements.

“This shows banks have ample capacity to absorb shocks,” Mr. Diokno said.

Economic contraction seen to be in single digits in 3rd quarter

THE COUNTRY’S economic contraction is seen to be in the single digits in the third quarter, as more sectors reopened with the easing of lockdown restrictions around the country, First Metro Investment Corp. (FMIC) and University of Asia and the Pacific (UA&P) said.

“Q3-2020 GDP (gross domestic product) will decline but in single-digits. We expect the industrial sector to lead the nascent recovery in the following months as the government continues to relax quarantine restrictions,” FMIC and UA&P said in the October issue of their joint “The Market Call” report published Monday.

FMIC and UA&P projected the third-quarter GDP shrinking by 5% at most, after the economy slumped by a record 16.5% in the second quarter.

The construction sector, buoyed by state spending on infrastructure and strong real estate demand, may have picked up ahead of other industrial sub-sectors, FMIC and UA&P said.

“A sprinkling of positive news and less negative economic data suggests that the economy is well past the bottom and is slowly gathering momentum,” they said.

The manufacturing sector is also seen to have improved from the previous quarter but at a slower pace, while mining is also expected to post a huge gain.

The country’s Manufacturing Purchasing Managers’ Index (PMI) improved to 50.2 in September from 47.3 in August, posting an expansion for the first time since February.

Government spending on infrastructure projects was still down 25% to P44.3 billion in August, bringing the year-to-date total to P394.5 billion, 11.5% lower from a year ago as ongoing restrictions continued to hamper construction works, data from the Budget department showed.

Lockdown restrictions have slowly loosened starting June to boost the economy.

FMIC and UA&P said there was a hint of “normalcy” in economic activity recently and a “significant improvement” in the last three months of the year.

“We do expect this to gain traction as the government has indicated willingness to ease COVID-19 induced restrictions in Q4, which should result in significantly greater construction and manufacturing activity as we approach the end of this dreadful 2020,” they said.

The government is planning to further ease business, travel and curfew restrictions to help the economy recover at a faster pace. However, COVID-19 infections continue to rise, with the addition of 2,638 cases on Monday to bring the total to 359,169.

“I expect a better economic performance for the 3rd quarter. Although not immediately positive growth, it is just a single digit contraction, possibly at -5%. This is due to a slow return to economic activity of the different sectors of the economy,” Colegio de San Juan de Letran Graduate School Dean Emmanuel J. Lopez said in a Viber message.

The Philippine Statistics Authority will report the third quarter GDP next month, Nov. 10. — B.M.Laforga

PHL won’t give up arbitral win over joint exploration

THE Philippines maintained it will not set aside its arbitral win against China over disputed areas in the West Philippine Sea just to proceed with joint oil and gas development, the country’s energy chief said on Monday.

Two years ago, the Philippines and China signed a memorandum of understanding (MoU) to pursue petroleum resources in the contested waters, which the Department of Energy (DoE) estimates to bear as much as seven trillion cubic feet of gas and six billion barrels of oil.

While they may jointly develop oil and gas prospects in the area, “there is no such condition” of setting aside the 2015 ruling of the Permanent Court of Arbitration favoring the Philippines in its control of the West Philippine Sea, according to Energy Secretary Alfonso G. Cusi.

“In pursuit of possible joint development, hindi natin sinasama ang ating (we are not laying down our) sovereignty or dropping the arbitration position,” he said in an interview with ANC. “Hindi po natin sine-set aside ’yun; tuloy-tuloy po ang ating discussion on pursuing that MoU (We are not setting aside that; we still continue discussing the goals of the agreement).”

President Rodrigo R. Duterte approved on Oct. 15 the DoE’s recommendation to lift the ban on exploration activities in the West Philippine Sea, which was imposed by his predecessor in 2014 amid the escalating tension between the two countries.

The department has sent work resumption notices to the developers of five petroleum prospects within the area. These include state-led Philippine National Oil Co.-Exploration Corp. (PNOC-EC), which operates under Service Contract (SC) 59, and Nido Petroleum Philippines Pty. Ltd. (SC 54 and 58).

Two firms led by Manuel V. Pangilinan, PXP Energy Corp. and its subsidiary Forum Energy Ltd., through Forum (GSEC 101) Ltd., were also allowed to resume petroleum-related activities in their respective areas under SC 75 and 72.

Mr. Cusi, speaking in a separate briefing, assured the lifting of the exploration ban, which is an exercise of the country’s sovereign rights, in no way weakens the country’s win in the international arbitration case.

The Energy chief also saw no “adverse reaction” from China’s statement over the country’s unilateral decision to resume exploration.

“We hope the two sides will work together for new progress in the joint exploration,” China’s Foreign Affairs spokesman Zhao Lijian said in a press conference last week.

Forum Energy and China National Oil Offshore Corp. (CNOOC) continue to negotiate to implement the two countries’ non-binding deal. In a disclosure to the stock exchange, PXP Energy said the two companies have “yet to agree on any disclosable definitive agreement.”

Shares in PXP Energy have surged since Friday, hitting the 50% ceiling for daily price movements two days in a row. PXP shares closed at P11.58 a piece on Monday, double Thursday’s closing price of P5.15.

The threat to energy security posed by the depleting natural gas resources in Malampaya, northwest of Palawan, prompted the DoE to seek the resumption of the stalled exploration activities in the disputed waters.

“There is an urgent imperative to resume exploration, development, and production activities within our EEZ (exclusive economic zone) to ensure continuity of supply of indigenous resources in the country,” the DoE said on Thursday.

Based on estimates, the Malampaya gas field is expected to completely dry out by 2027. The gas reservoir generated 3,200 megawatts of electricity, accounting for 21.1% of the Philippines’ gross power generation in 2019.

The field’s operator, Shell Philippines Exploration B.V. recently disclosed it is selling its 45% operating stake in the Malampaya gas-to-power project under SC 38 in part of its rationalization efforts during the pandemic. — Adam J. Ang

Xurpas embarks on backdoor listing

PSE asks for full, comprehensive disclosure to lift trading suspension

By Denise A. Valdez, Senior Reporter

THE Philippine Stock Exchange, Inc. (PSE) will not lift the trading suspension on shares of Xurpas, Inc. after deciding that its planned P170.7-million acquisition of venture capital firm Wavemaker Partners US qualifies as a backdoor listing.

In a notice on its website, the bourse operator said backdoor listing rules will apply to the company’s planned issuance of 1.71 billion common shares to Wavemaker US, and as such, has required more documents from the company.

Until such compliance, it decided to keep the trading suspension on the company’s shares, which has been in place since Sept. 18.

“After a careful review of the company’s submissions and disclosures, the exchange deems that the foregoing transactions are covered by the exchange’s Rules on Backdoor Listing,” it said.

“Said determination is anchored on the series of transactions effectively resulting to an acquisition by a listed company (i.e., Xurpas) of an unlisted company (i.e., Wavemaker Group and its related entities) and the purchase by the Wavemaker Partners of Xurpas shares resulting to a substantial change in Xurpas’ voting structure, among others,” it added.

Xurpas is planning to issue common shares amounting to 47.68% of its outstanding shares to Wavemaker US, represented by Frederick Manlunas, Benjamin Paul Bustamante Santos, James Buckly Jordan, Wavemaker Partners V, LP and Wavemaker US Fund Holdings, LLC. The shares are priced at 10 centavos each.

After this transaction, Xurpas will buy 100% of Wavemaker Group, Inc., which has interests in Siemer Ventures, LLC; Wavemaker Partners, LLC; WMP GP V, LLC; Wavemaker Global Select, LLC; and Wavemaker Management, LLC.

It said it would get some P170 million in cash from the issuance of shares to Wavemaker US, which it will use to buy Wavemaker Group.

“It is in this regard that the exchange is constrained from lifting the trading suspension on the company’s shares until the required information have been submitted and due compliance with the applicable laws, rules and regulations has been established,” the PSE said.

Xurpas is required to submit a full and comprehensive disclosure to the regulator, including relevant documents that would detail the business impact and material implications of the transaction.

In an e-mail to BusinessWorld, which was disclosed to the PSE website on Monday, Xurpas said it would “comply with the exchange’s findings to ensure that the public will have access to full, fair, timely, and accurate information.”

“The company is currently preparing the comprehensive corporate disclosure for backdoor listing and will be submitted to the exchange once available,” it added.

Xurpas had previously planned to complete the acquisition of Wavemaker no later than Dec. 31, 2020.

“This acquisition significantly expands Xurpas’ technology base and gives Filipino shareholders and investors access to an entire portfolio of promising venture-backed early-stage companies in the US,” Xurpas Chairman Nico Jose S. Nolledo said in a statement in September.

Xurpas recorded an attributable net loss of P43.75 million in the first half of 2020, down from P118.28 million in the same period last year. Its shares closed at 55 centavos apiece on its last trading day on Sept. 18.

AC Energy, partner to build $36-M solar farm in India

AYALA-LED AC Energy, Inc. and its partner are expanding their network in India with another solar farm in the pipeline.

It said in a statement on Monday that UPC-AC Energy Solar, the joint venture of the Ayala energy arm and Hong Kong-based UPC Renewables Group, is developing a 70-megawatt peak (MWp) solar facility in Gujarat state’s Amreli district. The project is estimated to be worth $36 million.

The company won the 25-year power supply contract of electric utility Gujarat Urja Vikas Nigam Ltd. through a competitive bid of INR 2.55 per kilowatt-hour (kWh). The Indian state is said to target 8,000 MW of solar power installations over the next two years.

The Paryapt Solar project is expected to begin power generation in the first half of 2021.

AC Energy’s latest project followed its first solar farm project in the country, located in Rajasthan. The $68-million Sitara Solar facility is also expected to bring power to the desert state starting next year.

India is eyeing to have a total of 175 gigawatt (GW) of clean power capacity by 2022 with 100 GW coming from solar.

AC Energy and UPC Renewables are also partners in the development of two wind project in the Soc Trang province in Vietnam with a combined capacity of 60 MW. The companies first teamed up in 2013 for an 81-MW wind farm project in Ilocos Norte in the Philippines.

The Ayala firm through AC Energy Philippines, Inc., a publicly listed company in the country, is integrating its international businesses with its domestic ventures, as it aspires to become the largest listed renewables platform in Southeast Asia. It targets to build up to 5,000 MW of clean power facilities over the next five years.

On Monday, shares in AC Energy inched up 0.86% to close at P3.51 each. — Adam J. Ang

PXP Energy, Atok-Big Wedge further soar after lifting of exploration ban

SHARES in PXP Energy Corp. and Atok-Big Wedge Co., Inc. on Monday sustained their surge days after the government lifted a ban on oil and gas exploration in the West Philippine Sea.

Atok-Big Wedge stocks jumped 12.82% or P1.48 to close at P13.02 each, while PXP Energy shares soared 50% or P3.86 to end the day at P11.58 apiece. Both attributed their rising share price to the recent lifting of the moratorium on exploration activities.

But a trader stayed cautious as investors were lured to the listed companies with interest in service contracts within the contested offshore areas.

In a mobile phone message, Timson Securities, Inc. Head of Online Trading and Trader Darren Blaine T. Pangan said he was cautious about the sudden surge of mining and oil stock prices.

“It would depend on the developments that would unfold in the coming days, regarding the exploration prospects in the West Philippine Sea,” Mr. Pangan said.

In its disclosure, Manuel V. Pangilinan-led PXP Energy said it had just received its “resume-to-work” notice from the Department of Energy (DoE) involving its operating interest in Service Contract (SC) 72, while its subsidiary, Forum Energy Ltd., was also issued the same notice for its operating interest in SC 75.

Further, the firm confirmed ongoing talks between Forum Energy’s subsidiary Forum (GSEC 101) Ltd., and China National Offshore Oil Corp. (CNOOC) regarding the implementation of the memorandum of understanding between the governments of Philippines and China on joint oil and gas development in the West Philippine Sea.

The two parties have yet to finalize any disclosable agreement, PXP Energy said.

“To date, there is no disclosable information in respect to such ongoing negotiations, including the existence of such ongoing negotiations itself,” PXP Energy said in the disclosure.

Meanwhile, mining company Atok Big-Wedge said it owns 20% of Forum Energy, which has a 70% stake in SC 72, an 8,800 square kilometer offshore license situated west of Palawan Island in the West Philippine Sea.

On the other hand, SC 75 is located northwest of Palawan, while SC 59 is in the southwest of the province.

Late Thursday, Energy Secretary Alfonso G. Cusi announced that service contractors had been allowed to resume energy-related activities within areas covered by SC numbers 59, 72 and 75, which were suspended in 2014 due to territorial disagreements. — Revin Mikhael D. Ochave

Japanese firm JTI to buy more tobacco leaves from local farmers —  DoF chief

Japan Tobacco International (Philippines) Inc. (JTI) is looking to increase its tobacco purchases from local farmers to more than 4.6 million kilograms (kg) next year, according to the Department of Finance (DoF).

Citing a letter from JTI General Manager John Freda, the DoF said in a statement on Monday the company’s planned purchases would be 1 million kg higher than this year and would make up 25% of its overall tobacco leaf requirement for 2021.

It will also “explore the possibility of further increasing our local leaf tobacco purchases next year and in the coming years,” the company said separately.

Republic Act (RA) No. 10351, or the excise tax reform law on alcohol and tobacco, requires manufacturers or vendors selling tobacco products in the country to buy at least 15% of their needed tobacco leaf raw materials from local farmers.

JTI’s letter was in response to the request of Finance Secretary Carlos G. Dominguez III and Agriculture Secretary William D. Dar to boost its purchases of locally produced tobacco leaves to support the domestic market that has been affected by the coronavirus disease 2019 (COVID-19) pandemic.

“Your kind assistance will translate into realized income to farmers, which assures food on their table and revenues for local government units (LGUs),” the joint letter addressed to the company read.

According to the two officials, the strict lockdown imposed to slow down the spread of COVID-19 has affected the flow of agricultural goods especially tobacco, which is among the most adversely affected crops as it is a non-food item.

They also cited studies showing that only 30% of the total tobacco production in the country were coming from local farmers and the rest sourced overseas.

“The National Tobacco Administration initiated a series of meetings on the subject in anticipation of the next harvest and trading season which is expected to begin sometime in March 2021, with the goal of ensuring that all harvest next year will be procured,” Mr. Freda said in his letter.

He said JTI Philippines would continue to support the government and Filipino tobacco farmers. — Beatrice M. Laforga

Higher LPG sales lift Pryce’s third-quarter profit 

PRYCE CORP. on Monday reported a 1.24% rise in its net profit between July and September to P1.222 billion over a year ago as it saw growth in liquefied petroleum gas (LPG) sales.

The company booked P8.994 billion in total revenues in the third quarter, or a 14.03% jump from last year, driven by the 15.45% revenue share hike of its LPG business.

Its main profit driver was its LPG content, selling 178,050 metric tons in the period, which represents a 9.5% increase.

It noted that the average international LPG contract price went down 10.23% to $394.28 per metric ton in the said period. “The peso-sale of LPG content would have been higher had it not been for such drop in average CP (contract price) and, consequently, of local LPG prices,” it said.

Meanwhile, it booked P466.7 million in revenues from other products. Only its pharmaceutical products saw a 13.8% sales growth to P42.27 million in the quarter, while it saw decreases in the sales of its industrial gases and real estate, declining 5.12% to P323.97 million and 18.25% to P100.26 million, respectively.

In the first semester, the company netted P759.25 million in after-tax income, a decline of 15.2%, after getting hit by the slump in crude and liquified natural gas prices and incurring “appreciable” inventory losses. The LPG contract price in the six months to June averaged at $415.58 per metric ton, or a 13.2% drop from a year ago.

The company said it was optimistic about its LPG sales in the fourth quarter of the year as the holiday season is approaching.

“Notwithstanding the coronavirus pandemic, the management still sees the last quarter as the strongest in terms of LPG sales and income because of the December festivities or holidays,” it said.

Shares in Pryce inched up 0.48% to close at P4.22 each on Monday. — Adam J. Ang

FEU swings to loss on enrollment decline, tuition discounts

FAR Eastern University, Inc. (FEU) swung to a loss in its first quarter, ending August as a result of lower enrollments and tuition fee discounts because of the coronavirus pandemic.

In a regulatory filing, the listed school operator said its attributable net loss stood at P148.8 million in the three months from June to August, reversing its attributable net income of P32.98 million in the same period last year.

Its revenues were halved to P284.64 million, which includes not only the 51% decline in educational revenues, but also some P38.1 million in non-recurring income from selling condominium units last year.

“Total revenues declined by 51%, mainly due to the drop in educational revenues resulting from decrease in enrollment during the midyear term and FEU’s movement of the start of first semester classes towards the end of August, affecting the timing of revenue recognition,” it said.

“Moreover, tuition fee charges were discounted as all classes were conducted using online mode, as compared to the regular tuition fees for the traditional classroom instruction,” it added.

While its topline declined, its operating expenses was also lessened by 24% to P439.21 million because of the implementation of online classes.

The company’s student population stood at 39,361 for the first semester of academic year 2020-2021, down 11% from last year’s 44,069.

“The consolidated financial position and the consolidated results of operations of the group are expected to remain operationally stable at its core until yearend. However, it anticipates certain drop in revenues and net income, while managing expenses to remain flat if not constrict,” it said.

FEU operates campuses in Manila, Quezon City, Cavite, and Alabang. It also owns FEU Senior High School in Manila and Roosevelt College in Marikina. — Denise A. Valdez

A happy ending guaranteed in latest boys love show

BOYS’ Lockdown is another entry to the ever-growing list of boys’ love (BL) series, a genre which has seen a surge in popularity this year, and this time, its writer said that this is for people who want to see a cute, fluffy romance with a happy ending.

Boys’ Lockdown is a six-episode series directed by Jade Castro that follows the story of Key (Ali King) and Chen (Alec Kevin), two boys who meet each other during enhanced community quarantine (the strictest form of lockdown imposed in the country during the first few months of the pandemic) in a convenience store while running errands.

“We want it to be a satisfying watch for those who will watch the show, and personally for me, that meant a happy ever after,” Danice Sison, the series writer and creator, said during an interview with BusinessWorld via Zoom on Oct. 7.

The show, whose first episode premiered on Oct. 19 on the Ticket2Me YouTube channel, is meant to be a lighthearted watch that will show what a “healthy, loving, supportive relationship looks like,” said Ms. Sison.

The first episode of the series sees the two leads meet offline in a supermarket/pharmacy in twinning face masks, as remarked in a cameo by “Tita Julie,” a popular online character of a progressive, rich tita (aunt) created by Mark Averilla, best known as McCoy Dubs.

Boys’ Lockdown is produced by Ticket2Me, a Southeast Asian blockchain-enabled ticketing platform that has produced several musicals and plays in the country. This is Ticket2Me’s first online web series and was started because the company’s CEO and founder, Darwin Mariano, loved the Thai BL series 2gether: The Series and wanted to do something like it.

According to the Urban Dictionary, “Boys love is the common term used by the publishing industry to categorize works focusing on male/male relationships marketed at women.” The term and its abbreviation “BL” are now being used to describe a wide variety of work in all media including anime and manga, novels and fan fiction, and live-action web shows.

“I messaged Jade [Castro] and told him that we should make a BL series because 2gether, saved me a lot of grief during the worst parts of the pandemic,” Mr. Mariano said during the same interview.

2gether: The Series is a Thai show about two schoolmates finding love and was a smash hit in the Philippines. It is largely credited towards the popularity of the genre.

And because the series was filmed during lockdowns, the team opted to do a locked-in shoot where everyone stayed in one location for two weeks to complete the shoot, a novel experience, especially for Ali King who said that the show was his first-ever acting gig.

“It was fun… I don’t know how prod work is done before quarantine, so the [stricter] protocols are now the norm for me,” Mr. King said in the interview.

Boys Lockdown is the newest entry to the ever-growing BL series slate in the country, and for Ms. Sison, this is a step towards LGBT (lesbian, gay, bisexual, transexual, etc) representation as it allows those who identify themselves as part of the community to now “reclaim their stories” as they “saw themselves in these shows.”

Globe Studios came out with Gaya sa Pelikula while Ideafirst made Gameboys, both of which are BL series. (Read more: https://www.bworldonline.com/globe-studios-releases-boys-love-online-series/ and https://www.bworldonline.com/pinoy-web-series-on-gay-romance-finds-an-audience-during-the-pandemic/)

“They should watch Boys’ Lockdown if they like BL and if they like stories about two men falling in love and getting their happy endings and if they want a sweet, fluffy, romance,” Ms. Sison said.

Watch Boys’ Lockdown on the Ticket2Me YouTube page. The link to the first episode is here: https://www.youtube.com/watch?v=q-epxsCY8jE . — Zsarlene B. Chua

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