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BIR sees big drop in cigarette tax stamps

THE Bureau of Internal Revenue (BIR) saw a decline in the issuance of cigarette tax stamps during one of the world’s longest and strictest lockdowns to curb the spread of the coronavirus disease 2019 (COVID-19).

The Finance department in a statement said the BIR issued 537.13 million cigarette tax stamps worth P18.8 billion from March to June. The volume of stamps was 59% lower than the 1.32 billion stamps worth P59.46 billion released in the same period in 2019.

Luzon was placed under an enhanced community quarantine (ECQ) starting mid-March to end-April. As of May 16, Metro Manila transitioned to a modified ECQ and on June 1, it was downgraded to a general community quarantine.

The BIR reported an 85% decline in the volume of cigarette tax stamps to 47.89 million stamps worth P1.68 billion in April, after the ECQ was extended.

In May, the BIR issued only 8.57 million cigarette tax stamps worth P299.89 million, 98% lower than the 385.04 million stamps worth P17.32 billion a year ago.

As lockdown restrictions eased in June, the BIR released 264.61 million tax stamps worth P9.26 billion, although this was still 8.6% lower than year-ago figures. — BML

GMA to buy back PDRs from foreigners

By Arjay L. Balinbin, Senior Reporter

GMA NETWORK, INC. is buying back all the Philippine Deposit Receipts (PDRs) it had sold to foreigners to protect their investments after lawmakers voted not to renew the franchise of ABS-CBN Corp., a rival media company that issued similar financial instruments.

In a disclosure to the stock exchange, Tuesday, the listed media company said its board of directors had approved to “purchase and acquire” the PDRs issued by GMA Holdings, Inc. to foreigners at P4.55 per share or lower “effective immediately and up to Oct. 31, 2020.”

The media company said the decision is “a measure of protection of the investments held by non-Filipinos in the PDRs,” which could “be affected by the findings and recommendations of the Technical Working Group as adopted by the House of Representatives Committee on Legislative Franchises on the application for a new franchise of ABS-CBN Corp.”

The PDRs will be converted into common shares after the acquisition. A PDR grants the holder the right to the delivery of sale of the underlying share, according to the Philippine Stock Exchange.

In a document, GMA Holdings said that on July 30, 2007 and Aug. 21, 2007, it issued 822,115,000 and 123,317,000 PDRs relating to GMA shares, respectively. “The total number of issued PDRs is 945,432,000 for a consideration of P8.50 per share or P8,036,172,000.”

In March, GMA Holdings said only 13.02% of its PDRs were held by non-Filipino investors, which went down further to 10.89% in June.

In June, one of the issues raised at the joint hearing of the Committee on Legislative Franchises and the Committee on Good Government and Public Accountability on the application of ABS-CBN for a franchise renewal was whether the media company violated the Constitution when it sold PDRs to foreigners, which allegedly allowed non-Filipinos to own the network.

The 1987 Constitution states that media companies should be 100% Filipino-owned.

Nueva Ecija 2nd District Rep. Micaela S. Violago has filed House Resolution No. 984 seeking an inquiry into the PDRs issued to foreigners by all the major broadcasting companies in the country.

GMA Network said in a statement that its issuance of PDRs was “done in compliance with the regulations of the Securities and Exchange Commission and of the Philippine Stock Exchange.”

Luis A. Limlingan, head of sales at Regina Capital Development Corp., said by phone the network’s action did not have much impact in terms of shareholder reaction.

He added that the move would not have implications on the majority of investors.

“For listed companies, not all have PDRs to begin with, and usually this affects broadcast companies,” he said.

Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said via e-mail: “The move could help GMA avoid possible issues that could come out as the House Committee on Legislative Franchises adopts the recommendation to investigate the issuance of PDRs of companies required by the law to be 100% owned by Filipinos. So it can be seen as something positive for GMA.”

The network announced on Monday the appointment of Regie C. Bautista as senior vice-president for corporate strategic planning and business development.

Ms. Bautista is also GMA Network’s concurrent chief risk officer and head of program support.

On Tuesday, shares in GMA Network slipped 0.40% to close at P4.99 apiece.

Art in the (virtual) park

ART IN THE PARK goes online this week, and we’ve taken a peek at some of the things the art fair gone virtual has to offer, via artinthepark.ph. The virtual art fair is ongoing until Aug. 17.

For starters, the website is organized into eight columns: the home page, All Artwork, How to Purchase, a Gallery Directory, Special Exhibit Artists, BPI Art Clips, Globe Platinum Collection, and F&B Promos.

Over at All Artwork, you can browse through 139 pages of works (amounting to about 2,600 works), which can be arranged alphabetically, by price, or by age. The number of artworks on display is accounted for by the fact that over 50 galleries and groups are presenting. These include Ang I.n.K., Archivo 1984, Arnold Art Collection, ART for Space Gallery, ART LAB: Atelier Cesare & Jean Marie Syjuco, Art Underground, Art Verite Gallery, Art Wednesday, Artepintura Gallery, Artery Art Space, Association of Pinoyprintmakers, Avellana Art Gallery, Blanc, Boston Art Gallery, Cevio Art Haus, District Gallery, Famous Artists, Far Eastern University, Galeria de las Islas, Galerie Anna, Galerie Artes, Galerie Stephanie, Kulay Art Group, Los Nuevos Conquistadores, J Studio, KASIBULAN, M A G, Mono8 Gallery, Museum Foundation of the Philippines — Joe Geraldo works & Carlo Villafuerte’s jewelry, Nineveh Artspace, Nord Anglia International School, the Potters’ Group — Jon Pettyjohn and EJ Espiritu, the Sagada Potters’ Group, Joey De Castro, Project 20 Maginhawa, Orange Project, Resurrection Furniture and Found Objects Gallery, Sheerjoy, Silverlens, Space Encounters, T.U.P Fine Arts, The Authenticity Zero, The Mighty Bhutens, The Photography Zone, The Thursday Group, Tin-Aw Art Gallery, Village Art Gallery, Vinyl on Vinyl, UP College of Fine Arts, vMeme Contemporary Art Gallery, and Ysobel Art Gallery — and all their contact details are on the website as well. 

There’s a P50,000 ceiling on the artworks, as is usual for Art in the Park (which in more normal times would be held on a summer Sunday at the Jaime Velasquez Park in Salcedo Village, Makati). Among the more expensive artworks are Eric Masangkay’s Aguadora sculpture, made of steel, epoxy, wire, brass, copper, and stone. An artwork’s status as sold is posted on the website, but one can still view them. For example: somebody has bought out an entire Untitled series in pencil and watercolor by Alberto Cavazos, billed by Los Nuevos Conquistadores as “The Picasso of Mexico” (each work costing P2,000 each). Somebody has also bought a print of Ang Kiukok’s Pampanga Lantern Makers, but two Andy Warhol Prints are still up for sale.

The works by this year’s Special Exhibit artists are grouped together under one column. Isometric Ay! lah, lah, land… features the playful prints and paintings of artist Richard Quebral. The Garapata Hatchery collection of characters gets a spotlight with Dex Fernandez. The works of artists Robert Alejandro and Reena Gabriel can be viewed through the Globe Platinum Collection, which is only accessible via a password. Another collaboration is with the Bank of the Philippine Islands (BPI) via BPI Art Clips, shown on Art in the Park’s Facebook Page. One would be a demonstration by portraitist Jackie Lozano, and a performance by Fifth Wall Fest, a group that seeks to introduce Philippine audiences to dance films as an art form.

Meanwhile, Art in the Park partnered with several F&B establishments for Art in the Park-related merchandise. These include a special hip flask from Don Papa (if one purchases with a code on Boozy.ph). Other establishments with promos include Cibo, Hippie Happy Bowls, Iron Balls, Justainable Juice, Mantra, Merry Moo, Stanford Shaw, THC (Truly Homemade Chips), The Kitchen, and Yuan’s Paella Plus, and 8 Cuts. You can order these while you go through the 139 pages of artwork, which is sure to take all day.

Art in the Park will donate a portion of all sales to the Museum Foundation of the Philippines in support of their projects and programs for the National Museum of the Philippines and its network. — Joseph L. Garcia

LT Group quarterly profit slips on higher borrowing costs

LT GROUP, INC. (LTG), the holding company of taipan Lucio C. Tan, Sr., reported a 21% decline in attributable net income for the second quarter due to higher finance costs from loans.

The company submitted a regulatory filing on Tuesday which showed its net income attributable to equity holders stood at P3.81 billion, down from P4.82 billion in the same three-month period last year.

Its consolidated revenues dipped 6% to P22.04 billion, but the bottom line was dragged lower by the 64% surge in finance costs, which stood at P102.13 million at the end of the period.

On a year-to-date basis, however, LTG’s attributable net income grew 9% to P10.03 billion, and consolidated revenues increased 4% to P47.26 billion.

The improvement was linked to better operating results from its tobacco, distilled spirits and property development segments, outpacing the drop in its banking and beverage segments.

The tobacco business posted a net income of P8.22 billion, up 40% due to a price increase rolled out in August 2019. This offset the 17% decline in volume as an effect of the quarantine that started in mid-March.

Income from the banking unit, through Philippine National Bank, dropped 64% to P1.44 billion. It attributed the decline to some P8.44 billion in provisions for credit losses, which it booked as a result of the coronavirus crisis.

The sprits business, through Tanduay Distillers, Inc., generated a P543-million net income, growing 43% from last year. It said the improvement is due to better margins in the liquor segment and a 41% decline in selling and marketing expenses.

Eton Properties Philippines, Inc. posted a 9% income growth to P404 million, which can be linked to higher rental income from the expansion of its leasing portfolio.

Better performances from the other segments offset the decline in Asia Brewery, Inc. The beverage unit added P40 million in net income, slumping 84% due to the effect of the quarantine to sari-sari stores and supermarkets.

LTG’s 30.9% stake in Victorias Milling Co., Inc. contributed P148 million in its attributable income, or about 1% of the pie.

“LTG’s balance sheet remains strong. Debt-to-equity ratio was at 3.81:1 with the bank, and at 0.18:1 without the bank,” the company said in a statement.

Shares in LTG at the stock exchange shed three centavos or 0.39% to close at P7.70 each on Tuesday. — Denise A. Valdez

Of salesgirls, typhoons, and standees

A look at some of Cinemalaya’s short films

By Zsarlene B. Chua, Senior Reporter

THE country’s largest independent film festival opened its 16th installment on Aug. 6 — a fully online, short film bonanza with a collection of 30 short films, 10 of which are in the competition section.

In this piece, this writer reviews the five films in the Main Competition Shorts B group.

(The review of the first five films can be found here: https://www.bworldonline.com/of-broken-records-falling-stars-and-sampaguita-a-look-at-some-of-cinemalayas-short-films/)

• Ang Papakalma sa Unos (To Calm the Pig Inside)

Directed by Joanna Vasquez Arong

In 2013, Typhoon Haiyan, known locally as Yolanda, struck the Philippines. Considered the strongest storm to ever make landfall, its 315 km/h winds flattened towns in Leyte and Samar, and cut a swathe through the rest of the Visayas, destroying property and taking thousands of lives with it. That’s the crux of the film Ang Papakalma sa Unos.

The short film is peppered with stills and videos of the aftermath of the destruction, with its director, Ms. Arong also serving as its narrator. She talks about the destruction of the typhoon, the insensitivity of the country’s top leader to the plight of the affected, and why there wasn’t a local term for “storm surge.” The film also tackles the shared trauma of a community which was beaten down by a typhoon they initially thought was just a passing storm.

The film brought back memories of Haiyan/Yolanda. One of my most vivid memories was watching a newscast at midnight where a man carrying his child passed in front of the camera and when the reporter asked what happened to the child or if the child needed help, the man said that the child was dead because he drowned. I could still remember the shock on the face of the reporter.

I think that’s the biggest draw of the film: it shows that Yolanda was more than a storm. Yolanda was something that changed the lives of so many people that until now Taclobanons say they are still afraid of strong storms: this coming from people who are used to typhoons, who thought Yolanda was just another passing storm. Yolanda was real, and she was terrifying.

• Living Things

Directed by Martika Ramirez Escobar

The story follows a couple who have been together for 10 years and then, all of a sudden, the man turns into a cardboard standee of himself and the relationship changes — or does it?

This film is probably the most abstract entry in the competition section of Cinemalaya as the film uses cardboard standees as a metaphor for how people change through the years and how a relationship changes when people change. The only thing that didn’t change with this couple is their wanting to stay together, even if that means lugging a cardboard standee everywhere.

• Utwas (Rise)

Directed by Richard Salvadico and Arlie Sweet Sumagaysay

This is the story of a boy who tries to learn his father’s craft and become a fisherman himself. This is the story of a boy who counts how long his father can stay underwater while he tries to fish but comes up in about 30 seconds holding nothing but trash from the ocean floor.

It is also a story of how fisherfolk are directly affected by the continued destruction of marine biodiversity because of dynamite fishing and other unsustainable fishing practices while dealing with mounting pollution.

Utwas is a simple, straightforward film, and it may be the most simple film in the main category because it is clear within the first two minutes that its makers knew what kind of message they wanted their viewers to get: that the environment needs to be saved because not only is the sea a source of livelihood, the sea is a source of life and it can also take a person’s life.

Excuse Me Miss, Miss, Miss

Directed by Sonny Calvento

If James Robin Mayo’s Fatigued (in the Main Competition Shorts A group) was a horror film peppered with social commentary on the plight of overworked, underpaid workers, Excuse Me Miss, Miss, Miss, makes the same social commentary as a comedy.

Set in a small department store, the film follows a saleslady who is called to her supervisor’s office for failing to prove that she is “dying to serve” the store’s customers. She is asked to hand in her resignation while the supervisor — who is working out on her stationary bike — recounts all her violations, which include eating lumpiang shanghai (spring rolls) while on duty.

The saleslady is unwilling to accept her fate because not only does she need the money, her supervisor failed to remember the time she sold 10 nonstick pans in two hours. So she follows her supervisor home and discovers the true secret of succeeding and moving up the ranks of the store.

The film is brilliant in how it presents the situation of contractual workers who are being paid barely minimum wage and yet are held to impossibly high standards of customer service in such a sarcastic, yet humorous way.

The Slums

Directed by Jan Andrei Cobey

After two films tackling the social ills of poorly treated contractual workers, The Slums is a commentary on the phenomenon of “poverty porn,” or how filmmakers capitalize on presenting the squalor of the slums as a backdrop for their creations.

The film follows a family of five who are interviewed by a documentary crew about a recent fire. Now, the purpose of the crew is unclear but what is clear is how they intrude into the life of this family who, despite being poor and living in the slums, are reasonably happy with their lives. The crew then tries to present a different kind of poor-ness to the family which includes eating only dried fish and living in perpetual sadness.

It is an entertaining film about taking back one’s narrative.

Cinemalaya runs until Aug. 16. For tickets and access to the films, visit cinemalaya.org/tickets. Tickets are priced from P75 for a film bundle to a P350 premium pass.

Emperador sets brandy exports to Latin America

EMPERADOR, INC. is targeting to bring its local brandy brand to Latin America next year after the products of its Mexican subsidiary became the dominant brand in the market.

In a statement, Tuesday, the Andrew L. Tan-led liquor manufacturer said its Mexican subsidiary, Casa Pedro Domecq, now has 57% of the brandy market share in Mexico, citing data by marketing firm Nielsen Corp.

The increasing appetite for brandy in the region has convinced the company to begin exporting Emperador Brandy to Mexico and other Latin American countries by 2021.

“There is a growing appetite for imported brandy in this market especially for brandy coming from the Philippines. Initial studies have shown very encouraging response to the taste profile of Emperador Brandy,” Joan Cortes Vilardell, director of Casa Pedro Domecq, was quoted in the statement as saying.

Emperador took control of Casa Pedro Domecq in 2017. It currently manufactures three brandy brands in Mexico: Presidente, Don Pedro and Aztec de Oro. These contribute 96% of the company’s brandy sales in the country.

Emperador noted Mexico has a population of around 120 million people, larger than its market in the Philippines.

“One of our top priorities in the coming years is to develop the markets in Latin America, which will be huge for Emperador’s international business, because of its combined population of around 600 million to date,” Emperador International CEO Glenn Manlapaz said in the statement.

“This will be quite easy for us to penetrate because of Casa Pedro Domecq’s strong foothold in Mexico and across Latin America,” he added.

The company currently exports Emperador Brandy to North America, Asia, Europe, Russia and Africa.

Emperador’s brandy business continues to account for the bulk of its revenues, making up P14.9 billion or 69% of its total P21.5-billion revenues in the first half. Its attributable net income grew 2% to P3.3 billion.

The company controls Emperador Distillers, Inc.; Scotch whisky maker Whyte and Mackay Group; and Spain-based Bodegas Fundador.

Shares in Emperador at the stock exchange gained 14 centavos or 1.42% to close at P9.99 each on Tuesday. — Denise A. Valdez

Pineapple Lab closes because of COVID – temporarily

ART GALLERY Pineapple Lab will be closing its doors at the end of August as the pandemic and subsequent technical recession claim another small business.

“No words can even capture all the moments in between these photos and all the people that changed our lives along the way — many of whom have continued to create movements in some shape or form,” said Andrei Nikolai Pamintuan, Pineapple Lab’s creative director, in a Facebook post on Aug. 9. “We made this difficult decision because our space thrives on gatherings and reaching out to our communities — having that real-life energy exchange is something we live off of. However, due to the COVID-19 (coronavirus disease 2019) pandemic, physical distancing provisions, the very slow government response to the pandemic, and the lack of policies protecting independent arts spaces, we had to think about the sustainability of the organization. Unfortunately, part of that is having to let go of the space and continuing the work that we do in the cloud, at the moment,” he said in an e-mail to BusinessWorld.

In the same e-mail, he reassured the public that “It’s not a goodbye to Poblacion from Pineapple Lab however. We will soon be popping up at a new HQ at the Draper Startup House on Burgos when all this is over.”

And although the space is closed because of the pandemic, that does not mean that they are not busy. “We are currently doing a few partnerships and online activities with the Bangsamoro Short Film Festival (@bangsamoroshort) and with the UK-based Inventory Platform (@inventoryplatform) and Guest Projects’ (@guestprojects) Where I’m Coming From exhibition. We are definitely looking at more opportunities to collaborate and to create programs that will be available online,” he said.

Located along Palma Street in the Poblacion district of Makati City, Pineapple Lab has been a hub and venue for local artists and aficionados to hang out, mount exhibits, stage performances, and was home to Fringe Manila, a yearly open-access art festival offering out-of-the-box shows. It was a venue “dedicated to finding innovative ways to showcase the works of Filipino art makers, international artists, and collaborators,” according to its Facebook page. Speaking about the name, Mr. Pamintuan said, “If you look at a pineapple, you see that it has many eyes or segments, which for us represents the multi-faceted nature of the lab.”

The gallery, attached to its HollowBlock Retail space, houses a Filipino-themed vintage shop called Glorious Dias (see BusinessWorld’s story on it: https://www.bworldonline.com/the-past-revisited/) and Lesli Espisona’s hair salon. Both shops will also leave the space by the end of the month. “While we let go of our space, we hang on to all the memories and lessons learned until we can make new ones again,” he said in a Facebook post.

The post thanked the artists and people that have been a part of the gallery since it opened in 2015 it also apologized to the artists who will have to say goodbye to a gallery they called home. “For those who have always believed in the lab — in what we do and in what we stand up for — my heart breaks we couldn’t say, ‘hey just pop in and say hi and come hang out,’” Mr. Pamintuan said. Pineapple Lab, he said, “articulated a certain purpose and point of view that we wanted to share in Poblacion.

“It was our safe space and it was how we were able to work and collaborate with the most talented folks that have become part of the Pineapple Lab family. The past five years have been quite an amazing ride and we would not have thrived if not for the community that shaped what the lab has become,” he added. “What I do know is we found a home in Poblacion and rooted our work not only in providing a venue for artists, but also in creating programs that made arts and cultural activities accessible to our local community.”

Mr. Pamintuan speaks about the importance of art, in a world scrambling for essentials. “Art will survive, period. I think that is what we need to remind ourselves and those that do not see that the arts are essential. It has always survived, the question is, how much value are we putting in it? We need to change the way we look at arts and cultural activities and start seeing how much it has and will contribute to cultural development and a sustainable future,” he said in his e-mail to BusinessWorld.

“This isn’t the first time we said goodbye to our home,” noted Mr. Pamintuan, speaking about a move a few years ago from a previous location to its present soon-to-be-vacated space. “Like Jodinand (Aguillon Pineapple Lab’s executive director) said, ‘If you can build it before, you can build it again.’ And so we take all the memories and all the folks with us, as we look forward with hope and serve as an inspiration to continue our programs beyond the walls.” — Joseph L. Garcia and Zsarlene B. Chua

Lockdown hits Century Properties net income

CENTURY Properties Group, Inc. (CPG) posted a 37% earnings drop in the second quarter as its sales and construction activities were disrupted by the lockdown to contain the coronavirus outbreak.

In a regulatory filing on Tuesday, the property developer said it booked an attributable net income of P223.69 million in April to June, down from P352.7 million in the same period a year ago.

Consolidated revenues slid 48% to P1.72 billion, as sales activities were tempered by the strict lockdown in April and May.

This brought CPG’s year-to-date attributable net income down 36% to P458.13 million, as total revenues fell 25% to P4.52 billion.

By business segment, real estate revenues dropped 28% to P3.88 billion due to the slowdown in sales conversion and construction activities during the period of the quarantine.

But the leasing segment stood resilient, posting a 40% revenue growth to P347.27 million due to recognitions from its initial leased out spaces in Century Diamond Tower and Asian Century Center.

“Despite the dip in the revenues and net income…, the trajectories are well within the management’s expectations in view of the present market and business conditions,” CPG Chief Finance Officer Ponciano S. Carreon, Jr. said in a statement.

The company noted its horizontal affordable housing and commercial leasing businesses now account for 42% of its net income, up from 29% last year, which is in line with its strategy of balancing its asset portfolio and diversifying revenue streams.

“We are prepared for the unfavorable impact of the current situation… and we have quickly put in place mitigating measures to build robust liquidity levels and a strong balance sheet…,” Mr. Carreon said. “[P]reparations are ongoing to position the group for the new market and business opportunities.”

CPG is now practicing digital selling and online transactions to continue generating sales despite the quarantine protocols. It said half of its sales processes were done online during the first half, and 64% of unit turnovers were done through virtual platforms starting June.

“We are addressing pain points of customers and the need for safer means of delivering our services… We are pleased with how our clients have responded, and how they have prioritized placing their hard-earned cash in real estate assets during this time…,” Mr. Carreon said.

Shares in CPG at the stock exchange closed flat on Tuesday at 36 centavos apiece. — Denise A. Valdez

Metrobank Foundation pledges P1M for artists affected by COVID-19 crisis

THE Metrobank Foundation, Inc. (MBFI) has allocated P1 million to aid local artists who suffered loss of income due to the COVID-19 (coronavirus disease 2019) pandemic.

Through a program called Metrobank Art & Design Excellence-Community Aid and Relief for Emergency Situations or MADE CARES, MBFI aims to support 200 visual artists by giving them  P5,000 each. MADE CARES is part of MBFI’s initiatives to reach out to its stakeholders during this health crisis.

Beneficiaries who are qualified for the cash assistance include past awardees of the annual MADE Painting and Sculpture recognition programs, as well as non-awardees who are Filipino painters and sculptors aged 18 years old and above. MBFI will also prioritize practicing visual artists whose income-generating art projects or livelihoods were affected by the pandemic.

Not eligible for the grant are painters and sculptors who receive a regular salary from a public or private institution, are recipients of pensions and other cash assistance from art and cultural institutions, or are currently involved in any income-generating projects.

A total of P115,000 was given on Aug. 6 to the first batch of beneficiaries, composed of 23 members of the MADE-Network of Winners, the alumni organization of past MADE awardees.

The grant application for the remaining 177 slots is now open for both awardees and non-awardees of MADE. To register, applicants must fill-out the application form which can be accessed through bit.ly/MADECARES_application. The deadline for submission of application is on Aug. 23.

For further details, interested parties may contact Badet Macaraig through bsm.mbfi@gmail.com; or visit MADE Facebook page @MADECompetition.

Israeli firm wants to expand petroleum exploration

AN ISRAELI FIRM sought to cover a wider gas and oil exploration area in the country, according to the Department of Energy (DoE).

Two years after the Philippines signed a deal with Ratio Petroleum, Ltd. to unearth viable petroleum resources in Palawan, the foreign company now wants to “double” the area of its exploration.

“They are faring to come in already and they’re just asking for a bigger contract,” Energy Secretary Alfonso G. Cusi told reporters.

In October 2018, Ratio was awarded with Service Contract No. 78 to explore the 6,480-square-kilometer block in offshore east Palawan. It is the first petroleum contract awarded under the present administration.

Then in July last year, it signed a memorandum of understanding with the Philippine National Oil Co. (PNOC) for their cooperation in the conduct of studies and sharing of technical information and resources in developing the petroleum prospect.

Ngayon (Now), they want to double the area, so that is still under discussion as they are proceeding with the project,” the Energy chief said.

A team from the exploration company was supposed to start the project operation this year but the global coronavirus pandemic prevented them from entering the country, according to Mr. Cusi.

“We are doing virtual meeting [with them] pero napakahirap, e, pag ganyang (it’s difficult, especially if) you are looking at the documents,” he added.

It was estimated that the project would cost $34.35 million over a seven-year period.

Ratio is involved in the development of the 22-tcf (trillion cubic feet) Leviathan natural gas field — the largest of its kind in the Mediterranean sea.

The DoE under Mr. Cusi launched the Philippine Conventional Energy Contracting Program (PCECP), which seeks to boost petroleum discoveries in the country. Investors can either choose to bid among the 14 pre-determined areas offered by the department or to nominate other areas.

Presently, it is engaging the Department of Foreign Affairs to help operators to resume exploration activities in the disputed West Philippines Sea while the country fights the global pandemic.

Offers to survey three blocks for oil prospectivity within the contested waters are yet to be disclosed after their challenge periods lapsed in May. — Adam J. Ang

Leap of faith: Nigerian boy captivates the world with his ballet

LAGOS — Gracefully spinning among a group of dancers clad in pink, 11-year-old Anthony Mmesoma Madu stands out in black leggings, a white turtleneck and poise beyond his years.

His parents in Lagos, Nigeria’s teeming lagoon city, wanted him to become a priest. Instead, he has captivated millions with his ballet.

“When I am dancing, I feel as if I am on top of the world,” he told Reuters.

A video of him dancing barefoot in the rain on concrete outside the studio where he trains, the Leap of Dance Academy, went viral last month.

More than 15 million people have watched his joyful leaps and pirouettes, undeterred by the rain and coarse surface.

The video caught the eye of the elite American Ballet Theater, which gave him a scholarship and arranged internet access for virtual training this summer.

Next year, he will train in the United States on a scholarship from Ballet Beyond Borders.

“When my friends see me dancing, they feel like, what is this boy doing, is he doing a foreign dance?” he said. “Now I have won a grand prize to go to the US… I will be in the plane and this is what I am waiting for, and ballet has done it for me.”

The video also sparked a flood of donations to the academy, which teaches its students for free. Founder Daniel Ajala Owoseni said he will use the money, and fame, to promote ballet in Nigeria, a country where it is not yet widely practised.

“I saw the need to bring a form of art that shows discipline, dedication and commitment,” he said. “Students who are able to learn all of these can … transfer (them) into other spheres of their lives.” — Reuters

Gov’t fully awards 10-year bonds

THE GOVERNMENT fully awarded the reissued 10-year Treasury bonds (T-bonds) it offered on Tuesday, even opening the tap facility to raise P10 billion more, as investors awash with cash look for higher yields.

The Bureau of the Treasury (BTr) has borrowed P30 billion as planned via the reissued 10-year T-bonds. Tenders reached P54.725 billion or nearly twice as much as the initial offer.

The bonds fetched an average rate of 2.724%, down 3.5 basis points (bps) from the 2.759% logged in the previous auction on July 7.

The BTr also offered another P10 billion via the tap facility yesterday to take advantage of the strong demand and low rates.

National Treasurer Rosalia V. de Leon said robust liquidity in the market continued to drive yields lower, continuing the trend seen in its auctions in the past four months.

“(The market is in) very deep liquidity and (the investors’) search for high yields drive duration interest,” Ms. De Leon told reporters via Viber.

A bond trader shared the same view, saying by phone that the auction was “oversubscribed due to the excess liquidity in the market (since) the market continued to be awash with cash despite the inflation data… and considering the record high booked dun sa (for the) RTB-24.”

Inflation picked up to 2.7% in July from 2.5% in June and the 2.4% rate a year ago, largely due to higher transportation costs and faster increases in prices of other goods and services such as alcoholic beverages and tobacco, housing, water, electricity and fuel.

Meanwhile, the BTr raised a record P516.3 billion in five-year retail Treasury bonds (RTBs) last week at a coupon of 2.625% per annum. The debt papers will be issued on Wednesday, Aug. 12.

The measures rolled out by the central bank to spur the economy also contributed to the liquidity boost in the market, the trader added, such as the reduction in banks’ reserve requirement ratios (RRR) and purchases of bonds from the government and the secondary market.

The Bangko Sentral ng Pilipinas (BSP) has cut benchmark interest rates by 175 bps so far this year. Rates on its overnight reverse repurchase, lending and deposit facilities are now at record lows of 2.25%, 2.75 and 1.75%, respectively.

The BSP also cut the RRR of thrift and rural banks by 100 bps last month to three percent and two percent, respectively, while the reserve ratio of universal and commercial banks was slashed by 200 bps in April to 12%.

The central bank has likewise been buying debt papers at the secondary market and from the government. It bought P300 billion in three-month government securities from the Treasury in March under a repurchase agreement.

The government has set a P170-billion borrowing program for August. It will offer P110 billion in Treasury bills weekly and P60 billion in T-bonds to be auctioned off fortnightly.

It borrows from local and foreign lenders to plug its budget deficit seen to hit 9.6% of GDP this year. This year, it plans to borrow around P3 trillion. — B.M. Laforga