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RFM earnings slip on lower ice cream, flour sales

FOOD and beverage manufacturer RFM Corp. posted 4% lower earnings in the first quarter due to a decline in sales from its ice cream and institutional food product segments.

The listed Concepcion-led company reported Wednesday its attributable net income slipped to P212 million from P221 million last year.

The coronavirus disease 2019 (COVID-19) pandemic brought mixed results to its performance, as sales from ice cream and institutional flour products declined because of quarantine measures in parts of the country.

But the same quarantine measure drove up the company’s sales for its milk, pasta, hotcake, champorado and arroz caldo products, as people were locked in their homes and forced to prepare their own food.

RFM’s revenues stood at P3.2 billion at the end of the three months, up 3% from a year ago. Its direct costs and expenses grew 6% to P2.07 billion while general and administrative expenses climbed 9% to P169 million.

“Prior to the lockdown, we saw strong growth across most units. However, the lockdown affected our ice cream sales, especially in the out-of-home segments as consumers were restricted to their homes,” RFM President and Chief Executive Officer Jose Ma. A. Concepcion III said in a statement.

“On the other hand, the stay-at-home situation shifted more buying to our Selecta Milk, Royal and Fiesta Pasta and sauces, as well as White King hotcakes, champorado and arroz caldo. Institutional bread and flour sales were hit by closures of fastfood outlets,” he added.

The sudden rise in demand for the company’s packaged products led to challenges in production and supply chain, as its manpower had to be limited to observe social distancing measures.

Given that the second quarter would account for more weeks of quarantine, Mr. Concepcion said RFM is likely to post lower profits this period.

“The limited mobility and spending power of consumers will bear down on the sales of ice cream and institutional sales to fastfood outlets even as milk and pasta will see sustained demand,” he said.

RFM will be trimming its capital expenditures for the year and will be reconfiguring expenses to cope with challenges from the pandemic.

“We continue to observe and adapt to the new reality… We would need to continue the collaboration of the private and public sectors in ensuring our workers have food on their table and have work to come back to when more economic activities are allowed,” Mr. Concepcion said.

Shares in RFM at the stock exchange fell 29 centavos or 6.44% to P4.21 each on Wednesday. — Denise A. Valdez

Local airlines cancel commercial flights until May 31

PHILIPPINE Airlines (PAL), Cebu Pacific, Cebgo and Philippines AirAsia on Wednesday announced the extension of the suspension of their commercial flights until May 31.

The local carriers issued their advisories after the government’s decision extending the so-called “community quarantine” period in Metro Manila and other areas until the end of May.

PAL, operated by PAL Holdings, Inc., said: “We confirm that all Philippine Airlines domestic flights to or from our hubs in Manila, Cebu and Clark will remain canceled up to May 31, 2020.”

The flag carrier also said it was “evaluating the possibility of flying international routes and/or domestic routes to and from its Davao hub, in coordination with concerned government authorities.”

“We will announce any planned flights once these are finalized,” PAL added.

PAL plans to operate a reduced number of weekly flights on most domestic routes and on selected international routes by June 1. “But this will depend on the COVID-19 (coronavirus disease 2019) conditions: community quarantine restrictions, travel bans imposed by various governments and their impact on passenger demand, and above all on the public health and safety situation in each of the countries that PAL serves,” it said.

Affected PAL passengers can convert their tickets to a travel voucher. They may also rebook their tickets for free or request a refund without penalties.

Cebu Pacific, operated by Cebu Air, Inc., and its subsidiary Cebgo said its domestic and international flights remain canceled from May 16 to 31.

Philippines AirAsia, Inc. also canceled all its domestic and international flights until the end of May.

Cebu Pacific and Cebgo said affected passengers can rebook their travel tickets for free, place the full cost of their tickets in a travel fund valid for one year, or request a full refund.

“Processing of refunds will start after the Community Quarantine is lifted and regular work schedules resume. However, due to the unprecedented volume of requests for refunds, the process will take as long as three (3) to four (4) billing cycles,” Cebu Pacific said.

For its part, Philippines AirAsia said its guests with existing flight bookings made on or before 12 May 2020 with a departure date between March 23 and July 31, 2020 can select any new travel date before October 31, 2020 on the same route for an unlimited number of times without any additional cost, subject to seat availability.

Philippines AirAsia also said its guests can choose to retain the value of their tickets in the AirAsia BIG Member account for future travel with the airline to be redeemed within 730 calendar days from the issuance date.

“The travel date of the new booking can fall on any date within the published flight schedule on airasia.com,” it added.

AirAsia Group Berhad announced recently the new rules that its passengers will have to follow when flight operations resume after the government-imposed lockdown period. It said guests will be required to bring and wear their own face masks before, during and after flight. Guests without masks will be denied boarding.

PAL assured the public that all its aircraft have air filtration systems, and all its crew will be in full personal protective equipment to protect every passenger on board against viruses. Social-distancing cabin seating options as well as simplified meal or snack service will also be carried out.

Cebu Pacific passengers, as in other airlines, will also be required to wear face masks upon entry at the airport terminal and for the duration of the flight.

The budget carrier will minimize face-to-face contact between its ground staff and passengers. — Arjay L. Balinbin

Bringing life to broken parts

BROKEN bits of fishing boats drift on the sea before making landfall on the beach in Panglao, Bohol. The bangka are used for transportation between islands, by fishermen, and people taking leisure trips. As time goes by, parts of the fishing boats wear out and come off, some after rainy season storms.

Retired Swiss diplomat Jürg Casserini walks along the shoreline and collects the pieces — often sporting sun-faded numbers and letters — in a large bag, before he returns home and the real work begins.

Jürg Walter Casserini was born and raised in Thun, Switzerland. At an early age, he worked at the OCDE Swiss Delegation while taking further studies in Paris. Upon his return to Switzerland, he joined the Ministry of Foreign Affairs. His final posting was Deputy Head of Mission at the Swiss Embassy in Manila from 2009 to 2013.

After his retirement, he and his wife settled in the Philippines, travelling back and forth between Bohol and Manila.

A NEW PURPOSE
In Bohol, Mr. Casserini built a small studio where he creates sculptures, collages, and paintings.

He had been exposed to art as a young boy — his father owned a lithography and offset printing company in Thun called Stein und Offsetdruckerei Casserini & Son where he was exposed to the printmaking process.

Instead of taking over his father’s business, hed decided to pursue a career as a diplomat. It was only after retirement that he began creating original works.

“When I started, I saw so many fishermen’s boats, their broken parts floating in the sea, floating to the shore and back and forth,” Mr. Casserini told BusinessWorld in an interview over lunch in Makati City in early March before the COVID-19 lockdown.

After collecting the pieces, he said, “I clean them very carefully [with water and a small brush] because they are full of sand, seaweed, and shells. Then, I let them dry in the sun for weeks.”

Once the pieces of wood are dry, he takes a look at what he has — how much there is of a color and a size — and puts them together in a collage. Once satisfied, Mr. Casserini takes a photo on his phone to remember the composition. He then lets the work rest, leaves the work station, and keeps busy with other activities.

Upon returning to the studio, he looks at the works which he rarely rearranges since he is usually satisfied. “Maybe, I change a piece but I do not change many things,” he said.

“I [then] buy plywood, cut them, use it as a base for the bangka [parts] and glue them together in a collage.”

Mr. Casserini’s latest exhibit, titled The Bangka series, showcased 33 works at the Bamboo Organ Church in Las Piñas where he was the featured visual artist at 45th Bamboo Organ Festival in February.

“I never paint. I never retouch. Sometimes, wood is washed out. Sometimes the colors are not strong,” he noted. “I want to preserve the piece like how I found it on the beach — but cleaned.”

“Behind each piece is a story. But I do not know it, because the piece has been broken,” he said. “I wanted to bring back the fisherman’s boat in a piece of art.”

For more information on Jürg Casserini’s artworks, call 0917-819-5003, e-mail info@dare2art.com, or visit www.dare2art.com, and www.facebook.com/dare2art. — Michelle Anne P. Soliman

China’s gamers use code to enter virtual world

HONG KONG — Chinese fans of Nintendo’s Animal Crossing: New Horizons are paying a premium on foreign consoles and finding ways to skirt limits imposed by local regulators on a game that has become both a breakout worldwide hit and political flashpoint.

The game has become a global bestseller as its players describe the ability to create virtual versions of themselves and their homes and interact with other gamers as a form of escapism from the real world of coronavirus lockdowns, but it is not licensed for sale in China’s tightly regulated gaming industry.

To obtain the game and play it to its full potential, players in China are paying a premium of up to 50% for unlocked Switch consoles sold abroad and brought in by middlemen, getting foreign bank accounts to pay for items, or paying for services to get faster internet speed to access the game’s overseas servers.

“I think that everyone is like this. After a period of time you will want to speak to someone, to chat with someone or to go out somewhere with someone. But there aren’t many such opportunities during this epidemic,” said Chinese tutor Zhao Tianyu, who bought a Switch console on Alibaba’s Taobao e-commerce platform from a third-party seller in February.

“This game is a way for us to communicate with each other.”

Analysts say it has created the most buzz in China of all foreign-made games and gamers have used the opportunity to mimic scenarios in the real world, imposing temperature checks and mask-wearing on the virtual islands they create and even putting up patriotic posters with images of President Xi Jinping.

But some aspiring players are now having to use code words to find Animal Crossing on sale online after Hong Kong democracy activist Joshua Wong used the game to criticize Beijing, prompting a mainland crackdown on illicit sales.

Fellow gamer Liu Jici, 25, said he plays for about eight hours a day. “It’s just like real life. Despite the quarantine, I can still hang out with my friends.”

Nintendo said on Thursday that Animal Crossing: New Horizons shifted a record 13.4 million units in its first six weeks after it was released in March, and that surging demand for its Switch console helped the Japanese firm’s fourth-quarter profit to triple.

CHINA CONSOLE LOCKED
Nintendo does sell Switch consoles in China for the local market since December last year through a partnership with Chinese gaming giant Tencent but these Tencent-stamped ones contain a server lock that prevent players from connecting to overseas servers.

Some gamers told Reuters they had initially bought the Tencent version, thinking that they could use it to play their copies of Animal Crossing obtained from the grey market, but later found that they were unable to.

Zeng Duanxuan, a fashion designer from Beijing, said she had paid 2,100 yuan ($297) for a Tencent-stamped console earlier this year but was now selling it because it could not be used to play her copy of the game.

“What attracted me about the game is that you can call at friends’ homes like you do in real life, and go fishing and interact with friends. Now I’ll just pretend that I never bought this Switch,” she said.

In comparison to Japanese versions of the Switch consoles which were priced by third parties by as much as 4,000 yuan, new Tencent-stamped ones are being sold at about half that on e-commerce platforms such as Pinduoduo, with nearly new ones priced even lower on resale sites like Idle Fish.

Daniel Ahmad, an analyst with gaming research firm Niko Partners, said Animal Crossing was exposing a disadvantage Tencent faces as it tries to promote its console in the world’s largest video games market.

“This will always lead to core console players importing the grey market versions first,” he said.

China’s National Press and Publication Administration, the government agency in charge of overseeing print and online media, and Tencent did not immediately reply to requests for comment. Nintendo declined to comment.

‘PROTEST ISLAND’
But there is little hope that the Chinese government will relax its stance towards the server lock or quickly green light the sale of Animal Crossing in China as the game has become a political flashpoint after Hong Kong democracy activist Mr. Wong used it to protest against Beijing’s rule over the Chinese territory.

Last month, Mr. Wong posted a screenshot of his island on Twitter decorated with a banner saying: “Free Hong Kong, revolution now.” Shortly after that, cartridges of Animal Crossing and related themed merchandise were pulled off China’s grey market e-commerce platforms.

Mainland gamers now have to look for the game using codenames such as “macho man picking tree branch” and “macho man fishing bass” to find vendors willing to deal privately, and it has fueled further frustration among the majority, who say they usually just carry out mundane, nonpolitical activities like dressing up their cartoon avatars or grow vegetables.

“If it were a very violent game that had been banned internationally, I’d understand,” Zhao said.

Still, some Chinese gamers have reacted to Mr. Wong’s posts by decorating their island with slogans such as “one country, two systems, unite China,” in reference to Beijing’s policy towards Taiwan and Hong Kong.

Mr. Wong has since shared pictures of his island showing portraits of President Xi and the World Health Organization’s head Tedros Adhanom Ghebreyesus at a mock funeral with a sign saying “Wuhan pneumonia.”

“We try our best to turn an island to be a protest site,” Mr. Wong told Reuters. — Reuters

WFH during the ECQ: RCBC’s Mike Ricafort and UnionBank’s Carlo Asuncion

While healthcare workers are on the frontlines and scientists are busy testing possible vaccines or cures for a virus that has changed the world, economists are getting their hands dirty at home as well. They are rigidly working with data to assess how this pandemic could change the course of our economy, updating their projections and recommendations to help seal that soft landing when recovery comes.

We spoke with chief economists Michael L. Ricafort of Rizal Commercial Banking Corp. and Ruben Carlo O. Asuncion of UnionBank of the Philippines, Inc. recently and they told us what life looked like for them working from home. They talked about their ways to go around the seemingly never ending new data to analyze as the pandemic stretches out and ultimately hampers growth.

There were no mentions of gross domestic product, inflation or unemployment rates from the analysts during the interview. Economists are humans too, who feel anxious about the uncertainty of the future. This is about more time spent with the family instead of getting stuck in traffic, and deadlines beaten while lying in bed after a tiring day at work in a living room.

Here’s their take outside global oil prices — of missing getting haircuts and burger cravings, packing a bag to walk 10 steps towards their workplace, and analyzing data to the beat of banging drumsticks.

The interviews have been lightly edited.

HOW HAS WORK CHANGED FOR AN ECONOMIST DURING THIS LOCKDOWN PERIOD?
Mr. Ricafort: I realized that in this field of work, the demand is bigger at times like this because clients have more time compared to what they had during normal circumstances. They have more questions. For our part, we have to deal with developments so there’s a lot to process.

There is more to monitor these days. There is more data, estimates, and calculations. Research is more in demand at a time like this so we have to work a lot.

Mr. Asuncion: I think the word is “maximized” because anytime an “appointment” is fixed, you’re already “there.” You want to set a boundary and you’re trying to have space. Later on you start to get the hang of it.

Especially with this pandemic, it’s quite hard to follow through the spate of data all coming out. It feels like you’re trying to catch the wind. As economists, we try to make different scenarios. But by next week, another development unfolds. You’re maximized because it’s an extraordinary time.

HAS IT GOTTEN TO AN OVERWHELMING POINT, SINCE YOU ARE DEALING WITH SCENARIOS AND ASSESSMENTS CAUSED BY COVID-19?
Mr. Ricafort: I have somehow gotten used to it. Things similar to this have happened before and I was already in this line of work. There’s this previous recession [in the US] and even the Asian financial crisis 20 years back. I guess I have prepared, although this time, it’s really different because we cannot go out. It’s a different level. I have not even stepped out to the garage.

I have so far grasped it and learned to process this situation, [getting it] in perspective. That this is a health issue first. I believe our economy is strong anyway.

Mr. Asuncion: That first Friday [after] the lockdown happened, I realized I was having an anxiety attack and my heart was beating so fast. I realized the developments I’m receiving are really quite heavy, they’re out of the ordinary. It started with Wuhan and back then, we thought, wow, this is really intense. But when it started to happen here, you feel like there’s a lag as you process it, that it’s actually right within your boundaries.

To overcome that, I silenced myself and meditated — which really helped. What disrupts this serenity however is whenever an ambulance would pass by every morning. You somehow feel okay but you also feel sadness because most likely, the ambulance is bringing someone [who is] not in a very good state. And with all this, you can’t do anything. That pushes you to be in touch with something bigger than you. If I could sum it up, I guess what helped me are awareness, meditation, and prayer.

HOW DO YOU ESTABLISH THAT SENSE OF “NORMALCY” WHILE WORKING DURING THESE TIMES?
Mr. Ricafort: Realistically, I can’t wear my shoes because the floor will get dirty, because shoes are just supposed to be on the first floor near the entrance. So I wear slippers. I feel awkward when I just wear shorts with my office top. It does not feel right so I also wear my pants which are also comfortable because they’re usually khaki.

Mr. Asuncion: I still carry my bag because you have to bring it to work before, right? Just now, the “travel time” is much shorter, it’s just 10 steps. It contains a laptop and some files which I got from previous events that I know I will eventually need. I also include my drumsticks just so I can play around with something while working.

I dress up with an office top and shorts. I felt excited in the first days and I was thinking [whether] I should wear a tie. Right now, I’m wearing this [a collared UnionBank shirt] which we usually wear on dress down Fridays.

HOW ARE YOU DOING WITH THE WORK-FROM-HOME ARRANGEMENT?
Mr. Ricafort: It’s perfect timing that my brother from Canada came home after five years and he’s the techie type. So before the lockdown, he fixed the things I will need for working from home — the desktop computer, the laptop, so that I didn’t need to bring my PC from the office.

I’ve been trained to work anywhere. I work while I’m traveling, either around the country or abroad. When my wife was still alive, we were in a long distance relationship and I would work remotely every time I visited her in Boracay at least twice a month. I also worked remotely whenever I would visit my family in the US and Canada.

Mr. Asuncion: I realized it’s really possible for me to work this way and that I can do much more. That this can be possible in normal days sometimes, just to change the routine. It does help with productivity and I know some firms are already doing it. I think it can be done for my field of work because we are output-based at the end of the day.

WHAT IS A TYPICAL DAY LIKE IN THE NEW “OFFICE” WHERE YOU ARE WORKING?
Mr. Ricafort: I’m working in a sort of living room here at the second floor. Sometimes, I would also work in the bedroom. I just want to make sure there is no disruption.

These days, I could work even when I’m already tired and lying down in bed if I have to run after deadlines. But as much as I can, I try to work in the living room because I realized it’s a bit tiring to work on a laptop. This has given me a backache in the past two weeks.

Mr. Asuncion: It’s quite flexible as I can move around within the living room. If I need to have space for an interview, I just tell people here ahead of time. If I want somewhere more quiet, just like for a radio interview I had, I go to the room.

ANY LESSONS YOU’VE LEARNED FROM THIS LOCKDOWN? WHAT ARE YOU ITCHING TO DO WHEN THINGS GET “BETTER” OUTSIDE?
Mr. Ricafort: I miss eating outside whenever I crave for something; also the simple pleasures. I have not had a burger since the lockdown. I also miss presenting in front of the audience. I miss my friends, too. Maybe, I also miss having a haircut. But I have been trying to condition my mind that many ladies have long hair and they’re used to it so I guess I can handle this.

I have trips lined up and it makes me excited. I know there’s a new normal and I might have to rebook some flights, especially the one I’m taking to the US. I’m also looking forward to visiting my wife’s grave.

Mr. Asuncion: In life, I realized there are things you thought you actually need but are not really what you need. That anytime, things can change. We are fortunate that we are a bank that valued digitalization even before this situation.

I really want to buy a bike. I want to go back to physical activities like swimming, cycling, and running. Because of this situation, I also learned to value more the connections here at home which were hampered by work — time spent with your partner and your kids as well.

Phoenix starts fuel delivery to small firms

PHOENIX Petroleum Philippines, Inc. (Phoenix) started delivering its fuel products directly to small and medium enterprises as part of its business adjustment during the global pandemic.

The listed oil company on Wednesday said it is giving businesses an option to buy at least 3,000 liters of fuel to be delivered from its select fuel stations around Metro Manila and neighboring cities.

“At Phoenix, we recognize the critical role of petroleum products to the operations of small and medium enterprises. Thus, to be able to help entrepreneurs get back to business, we launched this fuel delivery service, hoping to provide a more convenient option for customers in need of quality fuel supply during a time when mobility can be challenging,” Phoenix Petroleum Chief Operating Officer Henry R. Fadullon said in a statement.

The company is offering the service for the first time which comes along with additional charges based on the delivery location, as well as delivery fees.

Mr. Fadullon said the company has introduced various programs online where its customers are able to buy their products.

“While we continue to provide help to individuals and communities in need during this trying time, Phoenix Petroleum has also been relentless in finding ways to adapt and adjust our business to the new norm,” he said.

“The digital platform has become an essential part of our operations these days, and so far, we have launched various ways for customers to avail of our products online,” he added.

Around 90% of Phoenix Petroleum’s fuel stations are currently operating during the quarantine period since March. — Adam J. Ang

Kumu gears up for next funding round as lockdown measures boost its business

LIVESTREAMING app Kumu is preparing for its next fundraising after seeing user and live-streaming growth since the start of the enhanced community quarantine (ECQ) in Luzon.

Kumu Co-Founder and Chief Executive Officer Roland Ros said in an interview on Thursday that the app has been hosting entertainment events, church services and other community projects for users staying home during the lockdown.

The number of active users increased by 200% since January, while livestreams grew by 100% since the start of the lockdown in March to 30,000 broadcasts per day. Kumu revenues rose 100% since the start of the lockdown.

Kumu in April raised around $5 million for its Series A funding.

“We just raised what we call a series A round of financing and you know, we’re on our way to what they call series B financing,” Mr. Ros said.

“If we hit series B financing, that’s a company that’s really ready to go to that next level… right now we’re ahead of schedule in terms of hitting profitability and that’s something we’re really grateful for.”

He said at the same time, the company has set up a contingency plan for after the lockdown, making sure that its key partnerships are executed and speeding up product feature implementation.

Kumu, which now has almost four million registered users, is targeting five to six million users by the end of 2020.

Kumu also hopes to reach emerging markets that have 50 million internet users and three million people around the world sending billions of dollars back to their home countries.

“The Philippines is one market, but there’s at least 12 other markets who fit that profile,” Mr. Ros said.

“Kumu can be a licensing technology company that empowers passionate local entrepreneurs to do a similar strategy where they ally themselves with key business families of that particular market.” — Jenina P. Ibañez

Toyota Motor boosts maintenance services

TOYOTA Motor Philippines Corp. (TMP) is prioritizing maintenance services while it awaits the recovery of new vehicle demand after the enhanced community quarantine (ECQ).

TMP President Atsuhiro Okamoto said in a television interview on Wednesday that the company could restart around 50% of production operations.

But he also said that it would take time before the new car service market to fully recover, noting that the car maker is learning lessons from industry recovery in China.

“I assume it takes some time, but during the ECQ period, demand for maintenance is coming soon. Firstly, we should eliminate customer anxiety for the automotive ride,” he said.

Mr. Okamoto said that the company was considering customer visits for maintenance and repair services for those who cannot come to the service outlets.

“If customer cannot come to the outlet…we can visit. We can prepare service for the customer’s home…service for maintenance and repairing, we are now considering. Starting from the maintenance service or repairing service, that is our current direction,” he said.

Mr. Okamoto said the company was still in discussions on when it would be restarting operations at its Laguna plant, but that it was ready to do so.

Laguna will be under a modified ECQ until the end of May, where manufacturing for select industries including motor vehicles are allowed to operate with up to 50% of their workforce on-site. — Jenina P. Ibañez

Term deposit rates slip

YIELDS ON the central bank’s term deposit facility (TDF) slipped after fresh signals from the central bank of a “prudent pause” in monetary easing.

Total tenders for the one-week term deposits offered by the Bangko Sentral ng Pilipinas (BSP) hit P231.351 billion on Wednesday, more than twice the P100-billion offering and also surpassing the P181.221 billion in bids seen last week for a P70-billion offer.

Returns sought by banks for the seven-day deposits ranged from 2.25% to 2.2625%, a slimmer band compared to the 2.25% to 2.29% logged on May 6. With this, the average rate settled at 2.2578%, slipping by 0.76 basis point (bps) from the 2.2654% fetched a week ago.

“The auction results are consistent with current ample liquidity in the financial system and market preference for safe, highly liquid assets,” BSP Deputy Governor Francisco G. Dakila, Jr. said in a statement on Wednesday.

The TDF is the BSP’s primary tool to shore up excess liquidity in the financial system and to better guide market interest rates.

Offerings of term deposits with longer tenors of 14 and 28 days remain suspended. The BSP stopped offering term deposits at the onset of the enhanced community quarantine (ECQ) in Luzon in March to support the banking system.

Recent signals from BSP Governor Benjamin E. Diokno that the central bank will hold off on further easing may have caused the sustained drop in TDF yields, said Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort.

“The 7-day BSP TDF auction yield was marginally lower week-on-week after BSP Governor Diokno signalled pause in monetary policy easing at the moment,” Mr. Ricafort said in an e-mail.

He added that term deposits continue to be among the investment options with higher interest returns for financial firms holding excess cash, as shown by the sustained surge in bids.

Mr. Diokno said earlier this week a prudent pause will allow the central bank to gauge how the series of policy moves already implemented by the Monetary Board have affected financial institutions.

The central bank has already cut benchmark rates by 125 bps this year following the 75 bps in reductions in 2019. This brought the key policy rate or the overnight reverse repurchase rate to a record low of 2.75% while overnight lending and deposit rates now stand at 3.25% and 2.25%.

The BSP also reduced the reserve requirement ratio of big banks by 200 bps to 12% effective last month. Mr. Diokno has been authorized to cut RRR by a total of 400 bps this year. The minimum liquidity ratio of stand-alone thrift and rural banks has also been slashed by 400 bps to 16% until yearend. — L.W.T. Noble

Swedish pop-up restaurant fights coronavirus one guest at a time

RANSÄTER, Sweden — A coronavirus-resistant restaurant in a meadow in Sweden with just one table and one chair has welcomed its first guest.

The pop-up restaurant named Bord for En — Table for One in English — has no waiters and the food is delivered to the table in a basket from the kitchen window via a pulley system.

Upon arrival, the guest is guided to the table by another rope that leads into the meadow. “Once the rope ends, there’s the chair and the table,” chef Rasmus Persson said, adding that the first basket to arrive at the table would carry a drink.

Persson, who founded the restaurant with his partner Linda Karlsson, said they had the idea when her parents came to visit in March and he prepared a table for them outside and served a meal through a window.

“I think one of the things many of us miss the most in these times is traveling,” Persson said. “Since we can’t geographically travel far I think at least by our minds we can travel and one of the best methods of having an inner travel, at least I think so, is by food and nature.”

Restaurants in Sweden have, unlike in many other countries, been allowed to stay open during the COVID-19 pandemic provided they observe social distancing guidelines.

The solo restaurant is fully booked through May while some slots are still available in June and July and they have weather protection for rainy days, Karlsson said. — Reuters

Pilipinas Shell reports losses as demand falls

PILIPINAS Shell Petroleum Corp. posted a P5.55-billion net loss in the first quarter as the coronavirus disease 2019 (COVID-19) pandemic led to a collapse in global oil prices, along with falling oil demand.

In a disclosure to the stock exchange, Wednesday, the local unit of Royal Dutch Shell reported a reversal of the P2.33-billion income it registered in the same quarter in 2019.

“Our first-quarter loss is disappointing given our robust overall performance last year and the strong marketing delivery from the start of 2020 up until mid-March,” Pilipinas Shell President and Chief Executive Officer Cesar G. Romero said in a statement.

“We have taken prompt action to reinforce the financial strength and resilience of our business, leveraging on the flexibility of our supply chain and prudent balance sheet management over the past years,” he added.

The listed oil company has doubled its operating expense savings target this year to P1 billion from P500 million in March, coming from various cash preservation initiatives.

Pilipinas Shell has cut its capital expenditure this year by 25% to over P1 billion, while its employees will no longer receive discretionary performance-related bonuses.

Its marketing volumes declined by 36% in the second half of March after the government imposed an enhanced community quarantine (ECQ) in Luzon. This is despite increasing them by 6% before the lockdown period.

Before ECQ, the total volumes of its retail business registered flat despite the Taal Volcano eruption in January. During the lockdown period, it went down over 50%.

Its non-fuels retailing delivery remained flat in the quarter, compared with a year ago, after partnering with delivery firms to transport non-fuels retail products to select areas during the quarantine period.

The increased premium penetration in lubricants by 8% also contributed to this, after a “strong” execution of its Women’s Month promotions and sales from its new range of products.

Its commercial business saw a 16% growth in volumes before the ECQ period, while premium fuel penetration also increased.

During the lockdown, these volumes went up 20% as operations of its base-load plant customers were restored, new customers in construction, manufacturing, and wholesale sectors were acquired, and as customers increased their inventories after the quarantine announcement.

The firm’s volume of lubricants grew by 7% from January to the first half of March, but it declined by over a half from the latter March period. However, it posted higher income in the quarter, driven by increases in both premium penetration and wallet share from customers.

Aviation fuel volumes recorded a 2% uptick in the quarter despite flight cancellations at the Ninoy Aquino International Airport during the volcano eruption and lockdown period. During the latter half of March, it saw aviation fuel volumes fall by 60%.

In the quarter, the company opened five new Shell Select shops, five Shell Helix Oil Change (SHOC)+, and nine co-locators.

Recently, Pilipinas Shell announced it would shut down its 10,000-barrel-per-day Tabangao refinery in Batangas for a month starting May 15, citing the decline in demand for fuel products and falling refining margins during the lockdown.

On Wednesday, shares in PSPC inched down 0.96% to close at P18.54 each. — Adam J. Ang

Lifetrack using medical imaging to accelerate COVID-19 detection

HEALTHTECH start-up Lifetrack Medical Systems is using medical imaging to help in accelerating the detection of potential coronavirus disease 2019 (COVID-19) cases, its chief operating officer Carl Nicholas Ng said.

Mr. Ng said Lifetrack seeks to address the lack of radiologists in the country by giving access to medical images from different hospitals, allowing them to make medical diagnoses remotely.

“In modern medicine, imaging or radiology is an incredibly important part of the diagnostic procedures. Where Lifetrack comes in, we’re replacing legacy radiology software, which basically requires the radiologist to be physically in the hospital,” Mr. Ng said in an April 29 interview.

Lifetrack recently partnered with the Antique local government, offering their technology for free to hospitals and clinics serving as COVID-19 triaging and referral centers.

“They are basically using CT scans to do preliminary screening of potential COVID-19 patients,” he said. He added that Lifetrack is also working with Living Hope Hospital in southern Leyte, among others.

Lifetrack also launched a secured, anonymized global COVID-19 image repository that can be used by radiologists and researchers to identify potential COVID-19 cases faster.

“I think now we have COVID positive or presumptive X-rays and CT scans in our repository so we’re working with different partners,” he said, noting Lifetrack has joined the International Consortium for COVID-19 Imaging AI (ICOVAI).

“So this is basically a consortium of health care providers, health care companies, including AI companies, that are trying to come together and figure out how we can use our technology to accelerate the identification of COVID cases,” Mr. Ng said.

Lifetrack has also partnered with FamilyDOC of Ayala Healthcare Holdings, Inc. and medical insurance company Maxicare HealthCare Corp. They also have customers in Davao, Nueva Vizcaya and Pampanga, as well as in Singapore, US, Brazil, UK, India and Nigeria.

Mr. Ng added that Lifetrack has developed its platforms to likewise include cardiology.

We’ve released some of this features but most of them will be part of a major upgrade which will be released probably end of 2nd quarter. — Charmaine A. Tadalan

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