The listed operator of flag carrier Philippine Airlines (PAL) reported a net loss of P9.38 billion in the first quarter, more than 10 times higher than the previous year’s losses as as travel restrictions caused by the coronavirus pandemic “severely” hit its operations.

In the same quarter last year, its net loss attributable to equity holders of the parent company was at P838.17 million.

In a regulatory filing, PAL Holdings, Inc. placed revenues in the first quarter at P32.07 billion, 18.3% lower than the P39.24 billion posted a year ago.

Broken down, passenger revenues dropped 21.4% to P27.01 billion, cargo revenues decreased 14.1% to P1.9 billion, while ancillary revenues grew 18.4% to P3.16 billion as well as other sources of revenues, which surged 137.6% to P3.43 million.

PAL attributed the drop in passenger revenues to flight cancellations in March 2020 prompted by the pandemic.

PAL’s total expenses increased 5.2% to P38.63 billion from last year’s P36.71 billion. The company said the amount was “mainly due to the increase in flying operations expenses particularly fuel expenses as a result of hedging losses.”

“This however was offset by the decrease in other group’s operating expenses due to reduced flight operations during the quarter,” it added.
PAL’s total other charges went down by almost 10% to P2.73 billion from P3.03 billion.

The company said its performance in the first quarter “was severely affected by the economic condition of the country.”

“Nevertheless, the group is committed to keep the flag carrier continuously flying in the safest condition even in the midst of COVID-19 pandemic,” it added.

PAL said further that it will continue to assess possibilities available to mitigate the increasing risks it is currently facing.
On Friday, shares in PAL went up 2.54% to close at P7.26 apiece. — Arjay L. Balinbin

President Rodrigo R. Duterte said he would review the concession contracts proposed by the government to the Philippine capital’s water providers, whose owners he previously targeted over alleged onerous provisions in the agreements.

In a meeting with his officials shown on state media on Friday, he said he was fine with the contracts of Manila Water Co., Inc. and Maynilad Water Services, Inc. as long as they “pay back” their due to the consumers.

“I will review the contracts that are proposed by the government panel to the Ayala and the Pangilinan consortium na… Ako, okay na ako basta mabawi lang ng pera ang tao even in installment sa ano ninyo but you have to make some amends,” he said.

(I’m okay as long as the people get their money.)

“So okay na lang ako but iyong nawala sa tao, kung ano ang nawala sa kanila, that has to be paid back, whether in installments over a period of years, but you have to return the money to the people,” he added.

(I’m okay with it but they have to pay back what is due to the consumers.)

Publicly listed Manila Water is a unit of Ayala Corp., the diversified conglomerate led by brothers Jaime Augusto Zobel de Ayala and Fernando Zobel de Ayala. Maynilad is a subsidiary of Metro Pacific Investments Corp., the listed holding firm chaired by businessman Manuel V. Pangilinan.

Mr. Duterte said that if the government’s proposed contracts are not to the liking of the businessmen, he would proceed with the filing of a case against them.

The government last year found alleged onerous provisions in contracts of the two concessionaires with regulator Metropolitan Waterworks and Sewerage System, which include the non-interference of the government in their rate-setting.

The government also described as illegal the extension of the separate contracts to 2037 ahead of their lapse in 2022.

Mr. Duterte also said that the concessionaires committed economic sabotage after arbitration courts ruled that the government owes them indemnity over their losses. Both companies had said that they would not pursue their arbitral awards.

The President also said that the government would offer them new contracts and would push for criminal charges should they reject the new contracts.

Mr. Duterte last month apologized to the water concessionaires after recognizing the assistance given by the private sector to the government and various communities in the fight against the coronavirus disease. — Vann Marlo M. Villegas

Fruitas Holdings, Inc. saw its reported income rose by 20% in 2019 on the back of revenue growth from added stores.

In a stock exchange disclosure Friday, the food and beverage kiosk operator said its income grew to P121 million last year over P100 million in 2018.

Excluding some public offering expenses, its core net income went up 34% to P125 million, compared with P94 million in the preceding year.

“We are pleased with our 2019 results, with sales and net income increasing above 20%. Our acquisitions and investments in store network development contributed positively,” Fruitas President and Chief Executive Officer Lester C. Yu said.

A “strong” same-store sales growth and an expanded store network of 1,068 by end-2019 from 930 in 2018 boosted the listed food retailer’s total revenue last year by 23% to P1.95 billion over P1.58 billion in the previous year.

Negril Trading, which Fruitas acquired in 2015 and owns the food brands De Original Jamaican Pattie and Sabroso Lechon, posted revenue growth of 43% to P423 million despite being impacted by the swine flu crisis that hit some parts of the country in the latter half of 2019.

Further, the contribution to net sales of the company’s Visayas and Mindanao businesses increased by 39%.

“We look forward to regaining momentum in increasing our sales and profits as effects from the imposed quarantine due to the COVID-19 (coronavirus disease 2019) pandemic subside,” Mr. Yu said.

The food operator is taking several initiatives to keep its business afloat during the pandemic crisis with setting aside P270 million for capital expenditure this year.

It is focused on investing in delivery, opening new multi-product stores in communities, as well as continuing network expansion through strategic development, partnerships, and “disciplined” acquisitions.

On Friday, shares in Fruitas soared by 3.7% to close at P1.40 each. — Adam J. Ang

Eagle Cement Corp. on Friday said it commits to boosting cement production upon partially resuming its plant operations in Bulacan as the construction of infrastructure projects in the country also returned after the easing of government-imposed quarantine.

“We are starting to ramp up production as local demand for cement picks up following the easing of restriction in markets that we serve. We fully support government’s call to prioritize critical infrastructure projects to help reboot the economy,” Eagle Cement President and Chief Executive Officer Paul L. Ang said in a statement.

The listed cement manufacturer temporarily closed its plant in Barangay Akle in San Ildefonso on March 18 following a strict lockdown imposed by the government in Luzon.

The company reported a 25% drop in net earnings in the first quarter due to reduced construction activities. Its income fell to P1.2 billion from the P1.6 billion recorded in the same period a year ago.

As its workers returned to work, Eagle Cement said it put in place health and safety protocols, including a reverse transcription polymerase chain reaction (RT-PCR) testing for coronavirus disease 2019 (COVID-19) to all its plant personnel.

It is also looking to extend assistance for COVID-19 testing to its host communities through the local government, apart from delivering relief packages to them.

“The health and safety of our employees, business partners and our host communities are our utmost priority. We remain committed to conducting a regular RT-PCR testing and we will continue to ensure a safe workplace with strict safeguard measures in compliance with the government’s guidelines,” Mr. Ang said.

On Friday, shares in Eagle Cement rose by 6.09% to close at P9.58 each. — Adam J. Ang

Two project companies of Meralco Powergen Corp. (MGen), the power generation arm of Manila Electric Co. (Meralco), have resumed site activities as the government further relaxed the quarantine measures in Luzon.

Atimonan One Energy, Inc., which is building two units of 600-megawatt (MW) coal-fired power plant in Quezon province, resumed operations on June 4.

The generation firm said it had set up a health and safety team for returning employees, as well as an isolation facility for those who may undergo quarantine.

A full return of its project site workers is expected in the upcoming weeks.

MGen’s Powersource First Bulacan Solar, Inc., which is building a 50-MW of alternating current (MWac) solar farm in San Miguel, Bulacan, restarted construction works in May.

The two generation units temporarily halted operations on March 18 when the government placed the country under strict lockdown due to the coronavirus disease 2019 (COVID-19) pandemic.

During its annual stockholders’ meeting in May, Meralco said it eyes to generate 3,000 MW in the next five years, 1,000 of which is from renewable sources. — Adam J. Ang

AllDay Supermarket opened new stores in two locations in Cavite last month as demand for essential goods picked-up during the lockdown period.

In a statement on Tuesday, the Villar-led supermarket brand said it opened one store in Imus on May 20 and another in Salawag, Dasmariñas on May 30.

“The opening of the two AllDay supermarkets was in response to the demand that we saw in the area which was highlighted during the community lockdown,” AllValue Holdings, Inc. President Camille A. Villar said in a statement.

“We are looking at opening more supermarkets this year as we take advantage of the Villar Group’s wide geographic presence through its residential and commercial projects across the country,” Ms. Villar said.

AllDay Supermarket, along with other AllValue Group brands, such as AllHome, AllSports, AllToys and Finds Discount Store, has introduced a personal shopper delivery service to cater to customers stuck at home during the quarantine period.

There are a total of 21 AllDay Supermarkets and 76 AllDay convenience stores nationwide. — Adam J. Ang

With lower revenues and higher expenses, Now Corp.’s net income attributable to the equity holders of the parent company dropped by 63.5% during the first quarter of the year.

In a regulatory filing on Friday, the listed information technology company posted a net income of P1.91 million in the first three months, down from the previous year’s P5.24 million.

Now Corp. placed its revenues at P47.94 million, 4% lower than the previous year’s P49.88 million.

Broken down, service revenues slightly improved by 1% to P40.63 million from last year’s P40.21 million; management fee revenues increased 11.59% to P2.31 million from P2.07 million; while sales revenues suffered a 34% decline to P5 million from P7.6 million posted last year.

Cost and expenses in the first quarter was 5.5% higher at P42.22 million from P40.02 million during the same period last year.

Now Corp. owns the social business platform, NowPlanet.TV, and the one-stop shop website for micro, small and medium-sized enterprises, WebsiteExpress.Biz.

The company’s subsidiaries include J-Span IT Services, Inc.; Porteon SEA, Inc.; I-Resource Consulting International, Inc.; I-Professional Search Network, Inc.; and Softrigger Interactive, Inc.

On Friday, shares in Nown Corp. went up 2.79% to close at P1.84 apiece. — A. L. Balinbin