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Gross domestic product (GDP) quarterly performance (Q3 2020)

THE Philippine economy continued to shrink for a third straight quarter, although at a slower pace compared with the second quarter, as lockdown restrictions were further loosened amid the coronavirus disease 2019 (COVID-19) pandemic. Read the full story.

Gross domestic product (GDP) quarterly performance (Q3 2020)

Bad loans hit highest level in over seven years

THE NONPERFORMING LOAN (NPL) ratio of Philippine banks rose for the eighth straight month in September, surging to its highest level in over seven years amid the economic slowdown.

Data from the Bangko Sentral ng Pilipinas (BSP) showed the gross NPL ratio stood at 3.4% as of end-September, up from the 2.15% logged a year ago and the 2.84% seen as of end-August. This was the highest since the 3.42% NPL ratio recorded in May 2013.

Bad loans stood at P364.672 billion as of end-September, 60% higher than the P227.604 billion a year ago, and 20% up from P304.997 billion as of end-August.

Loans are considered nonperforming once they are unpaid for at least 30 days following the due date. These are deemed to be risky assets because borrowers are unlikely to settle these loans.

The industry’s NPL ratio is expected to rise to 4.6% by end-2020, based on BSP projections. It reached 17.6% in the aftermath of the Asian Financial Crisis in 2002.

“Near-record low interest rates have helped slow down any rise in NPL ratio, unlike in the Asian Financial Crisis and shortly thereafter when interest rates were relatively high,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message.

The growth of bad loans outpaced the 1.5% year-on-year uptick in the industry’s loan portfolio to P10.73 trillion.

Meanwhile, past due loans stood at P511.39 billion, jumping by 66% from the P307.466 billion in September 2019. This caused the industry’s past due loan ratio to edge higher to 4.77% from 2.91% a year ago.

Restructured loans surged by 197% to P125.459 billion in September, bringing its ratio against the total to 1.17% from 0.4% a year ago.

Banks made up for the deteriorating loan quality by boosting their allowance for credit losses, which climbed 60% to P334.57 billion as of end-September from P209.069 billion a year ago.

Bad loan coverage ratio across the industry, which gauges the allowance for potential losses due to soured loans, stood at 91.75% as of end-September, higher than 91.86% a year ago but lower than the 107.35% logged in August.

The steady rise in bad loans is no surprise as many consumers and businesses struggle amid the economic slowdown, analysts said. 

“Recent legislation for the loan grace period could slow this down modestly until it expires. We could see the (NPL) ratio to rise again after that although it will still be difficult to gauge as to when this will peak and this will depend largely on how quickly the economy can bounce back,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said.

Republic Act No. 11494 or the Bayanihan to Recover as One Act (Bayanihan II) provided for a one-time 60-day loan moratorium following the initial debt relief provided Bayanihan I.

The passage of the Financial Institutions Strategic Transfer (FIST) Bill will also allow banks to free up their balance sheets by unloading some NPLs to asset management companies, Mr. Ricafort said. The bill has been passed in the Lower House and is still pending at the Senate. — Luz Wendy T. Noble

PHL gets failing mark for inability to curb corruption in MCC scorecard

The Philippines received a failing mark in the “control of corruption” indicator in a scorecard by the Millennium Challenge Corp. — PHILIPPINE STAR/MICHAEL VARCAS

A UNITED STATES government foreign aid agency has given the Philippines a failing mark in “control of corruption” on its latest scorecard released on Tuesday.

The latest Millennium Challenge Corp. (MCC) scorecard for the Philippines showed it passed 12 out of 20 indicators used to determine a country’s eligibility for grants under its program, and the “democratic rights” indicator.

However, the Philippines received a failing mark for the “control of corruption” indicator, which means it will be unable to secure any grants next year.

The MCC requires countries to pass at least 10 of the 20 indicators, “control of corruption” indicator and either the “civil liberties” or “political rights” indicator.

“The mandatory passing of either the Political Rights or Civil Liberties indicators is called the Democratic Rights ‘hard hurdle’ on the scorecard, while the mandatory passing of the Control of Corruption indicator is called the Control of Corruption ‘hard hurdle.’ Not passing either ‘hard hurdle’ results in not passing the scorecard overall, regardless of whether at least 10 of the 20 other indicators are passed,” the MCC said on its website.

“While satisfaction of all three aspects means a country is termed to have ‘passed’ the scorecard, the Board also considers whether the country performs ‘substantially worse’ in any one policy category than it does on the scorecard overall,” it added.

However, the government will not tap MCC’s assistance facility for now, Finance Undersecretary Mark Dennis Y.C. Joven, said. Instead, the government will focus on securing grants from the US Agency for International Development (USAID).

“We are not applying for MCC assistance since allocation is not as significant as USAID allocation. We are pursuing USAID as our main US bilateral development partner,” Mr. Joven said in a text message on Tuesday.

USAID has extended P228.8 billion to the Philippines over the past 20 years, including the recent P780 million to fund the country’s pandemic response.

MCC uses its competitive selection process to determine which countries will be eligible for its assistance, which includes the use of a scorecard, while the USAID follows an approach where a development program, that usually covers five years, is created to determine which projects will be funded to help the country become less reliant on foreign aid.

Under the MCC scorecard, the Philippines passed six out of eight “economic freedom” indicators. It scored passing marks in terms of fiscal policy, inflation, regulatory quality, trade policy, gender in the economy, as well as land rights and access. However, it received a failing mark in access to credit and business startup.

The Philippines also passed three out of six indicators under “ruling justly,” namely political rights, civil liberties and government effectiveness. It failed in terms of control of corruption, rule of law and freedom of information.

The country also scored positively in three out of six in “investing in people” indicators, namely: natural resource protection, girls secondary education enrolment rate and child health. However, it failed in health expenditures, primary education expenditures and immunization rates.

In a Sept. 8 report, the MCC considered the Philippines among 68 potential countries that will be eligible for its assistance programs, along with other nations such as Bangladesh, Laos, Pakistan, India, Timor-Leste and Vietnam.

The country was listed under the low-income category for having a per capita income of below the World Bank’s threshold of $4,045 gross national income (GNI) per capita for 2021.

Data from the US foreign aid agency showed the Philippines has a $3,850 GNI per capita with a population of 108.117 million.

The MCC relies on the scorecard to determine a country’s eligibility. The scorecard is the third out of the four-stage selection process followed by the agency: from identification of candidate countries, publication of MCC’s selection criteria and its methodology report, the scorecard, and the actual selection of countries.

The Philippines was eligible for $433.91 million in MCC grants in a previous five-year compact signed in September 2010. The grant expired in May 2016 and since then, the government is hoping the US aid agency will continue its development assistance to the country.

The country used $385.072 million of the MCC’s funds from May 25, 2011 to May 25, 2016 to modernize tax collection by the Bureau of Internal Revenue, expand community-driven development projects and improve governance at the village and municipal levels, as well as rehabilitate a major secondary national road in Samar. — Beatrice M. Laforga

Uy firm quizzed on Malampaya stake

Senators say energy security at stake; DoE says $565-M deal still under scrutiny

LAWMAKERS on Tuesday questioned the technical capability of a subsidiary of Udenna Corp. to participate in the Malampaya offshore gas-to-power project, whose operator signified its intention to sell its stake in the country’s sole natural gas field.

In a Senate hearing, they asked whether Udenna unit UC Malampaya Philippines Pte. Ltd., which is among Davao City businessman Dennis A. Uy’s growing business holdings, possessed the technical requirements and experience in the oil and gas industry.

“It is also an interest to us to understand who will be the new owners, and if the new owners will have the technical capability [and] experience to operate such a complicated asset… This transaction affects the consumers because of its magnitude,” said Senator Sherwin T. Gatchalian, chairman of the Senate energy committee.

In September, Mr. Uy’s holding firm Udenna revealed its plan to fully take over the operations of the Malampaya project located off the coast of northwest Palawan. This came after operator Shell Philippines Exploration B.V. (SPEx) disclosed its plan to sell its 45% interest in the project under Service Contract (SC) 38.

The Davao-based group had said that the remaining consortium members – UC Malampaya and the Philippine National Oil Co.-Exploration Corp. (PNOC-EC) – were the “logical choice” to acquire the SPEx stake to ensure the project’s continued operations. The offshore gas platform supplies around 21% of the country’s electricity needs.

The Udenna unit previously acquired the 45% stake of the Philippine company of US energy group Chevron Corp. through a transaction in October last year which Department of Energy (DoE) Assistant Secretary Leonido J. Pulido III disclosed during the hearing as costing $565 million or around P27.3 billion.

Mr. Pulido said that although UC Malampaya submitted all the requirements, the Energy department is still in the process of evaluating its financial capability based on filings on Oct. 28.

Mr. Gatchalian said that since the DoE has the final say in the deal between Chevron and Udenna, the subsidiary could be “potentially disqualified because of its technical inadequacy.”

In turn, this could affect the country’s energy security because it has a stake in a platform that supplies about a fifth of the country’s power grid, the senator said.

Mr. Pulido said: “We understand the concern regarding the technical capability of the operator, but in this case, the consortium has an operator. So even if, in the event, whether likely or unlikely, the Department of Energy disapproves the sale between Chevron and Udenna, Shell Exploration (SPEx) is still there as the operator so the technical capability remains intact.”

Mr. Gatchalian also questioned the Udenna unit’s experience in the oil and gas sector as its corporate papers showed that it was established only last year.

“This is the first exposure of Udenna in the oil and gas industry, [which is] not an ordinary oil and gas industry but an operating oil and gas industry,” he said.

In the event that the Energy department will not approve of Udenna-Chevron’s share purchase agreement, an official of UC Malampaya said the company would challenge the denial.

“We will challenge it. Despite the change in parent company ownership, Udenna remains true to its vision to ensure that we continue to operate and support the consortium,” said Belinda Racela, the Udenna representative and president of the UC38 LLC, which now has the stake held by Chevron.

“We have submitted all of our technical capability [to the DoE]. They can see that all members of UC38 LLC are technically capable…. Udenna [also] has experience in upstream energy,” she said during the hearing.

Asked about the sources of financing in UC Malampaya’s acquisition of the 45% Malampaya project stake, Ms. Racela said that, to her knowledge, the unit did not secure direct funding from any foreign investor.

In a statement issued shortly before the hearing, Mr. Gatchalian, along with Senate President Vicente C. Sotto III and Senator Panfilo Lacson pointed out that Malampaya faces a number of issues, such as the “lack of direction from the government on SC 38 given its expiration in 2024.”

In March, Udenna announced that its unit completed its acquisition of the 45% stake in the project, which fuels five power plants in Luzon with a combined capacity of 3,200 megawatts. — Angelica Y. Yang

Century Properties income up 74% on investment gains

PROFITS of Century Properties Group, Inc. (CPG) surged 74% to P571.48 million in the third quarter due to gains from investment properties and non-recurring losses that were recorded the prior year.

In a regulatory filing on Tuesday, the Antonio-led property developer said its revenues in the three-month period were flat at P3.71 billion, dipping 0.9% from P3.75 billion a year ago.

However, it booked a P398.81-million gain, erased last year’s P43-million foreign exchange loss, and trimmed interest and financing charges by 38% to lift its bottomline.

Compared with the previous quarter, CPG’s P3.71-billion third-quarter revenues grew more than double from P1.7 billion, supported mainly by real estate sales and leasing revenues.

On a nine-month basis, CPG’s attributable net income stood at P1.03 billion, down 2% from the same period last year. Revenues were likewise 16% lower at P8.23 billion.

The company said its earnings were “better than expected” despite falling from year-ago levels. Its high-margin businesses improved 35% year-on-year to record combined contributions of P1.99 billion, making up 25% of total revenues.

“CPG is well-positioned to take on the business challenges in this new normal and navigate through this period while we plan for new launches and continue with our business expansion into our high-margin segments,” CPG Chief Finance Officer Ponciano S. Carreon, Jr. said in a statement.

The company is continuously widening its portfolio with a plan to launch a new 10-hectare affordable housing project in Pampanga this month.

It also recently expanded its office leasing business to a gross leasable area of 137,000 square meters, after it bought the 40% share of its joint venture partner in the Century Diamond Tower in Makati City.

It likewise plans to complete more than 2,000 condominium units by mid-2021, accounting for projects in Quezon City and San Fernando, Pampanga.

Shares in CPG closed at 38 centavos each on Tuesday, up by 1.5 centavos or 4.11% from the last session. — Denise A. Valdez

SEC waives fines for missed, late corporate reports

THE Securities and Exchange Commission (SEC) will not be fining companies that were not able to comply with deadlines to file regulatory requirements during the lockdown.

The corporate regulator issued Memorandum Circular No. 31 on Nov. 5, which was uploaded on its website Monday, to waive supposed penalties for violations incurred in the past months.

These include the late and non-filing of General Information Sheets, Audited Financial Statements and other reportorial requirements that the SEC asks from regulated firms.

The non-imposition of fines will apply for violations falling between Sept. 14 and Dec 19. Otherwise, the SEC will continue to implement corresponding fines and penalties.

The regulator said the circular is in line with Republic Act No. 11494 or the Bayanihan to Recover as One Act, also called Bayanihan II, which was signed into law on Sept. 11.

The law provides that the SEC and other regulatory agencies should “desist from imposing fines and other monetary penalties for non-filing, late filing, failure to comply with compulsory notification and other reportorial requirements relating to business activities and transactions… during the community quarantine.”

The SEC noted the relaxation of rules will also cover all foreign corporations except on matters relating to securities deposits and change of resident agent.

The circular takes effect immediately.

Prior to the signing of Bayanihan II, the Philippine government enacted Republic Act No. 11469 or the Bayanihan to Heal as One Act in March, which similarly sought to offer relief for SEC-regulated entities.

Accordingly, the SEC issued memorandum circulars that extended submission deadlines for reportorial requirements, on top of requiring grace periods for loans due during the strict lockdown.

Parts of the Philippines, including Metro Manila, remain under community quarantine due to the continuing spread of the coronavirus disease 2019. As of Monday, a total of 398,449 infections have been recorded by the Health department from the start of the outbreak. — Denise A. Valdez

Manila Water profit sinks 24% as units falter

EAST ZONE water concessionaire Manila Water Co., Inc. posted a 24% fall in net income to P3.20 billion for the three quarters ending September due to lower contribution from its units amid the coronavirus disease 2019 (COVID-19) pandemic.

“Higher water revenue contribution from the East Zone Concession and Laguna Water was offset by lower revenues from other domestic subsidiaries and lower other operating income which decreased by 43% as a result of lower supervision fees from Estate Water,” the Ayala-led company said in a disclosure to the stock exchange on Tuesday.

Manila Water did not disclose a report on its financial performance for the third quarter alone.

For the January-September period, the company said its total operating revenues inched up 0.4% to P16.07 billion from the P16 billion it posted in the same period last year.

Up to 80% of Manila Water’s revenues came from water sales, while 16% were accounted for by environmental and sewer charges. The remaining 4% came from supervision fees, after-the-meter services, connection fees, and septic sludge disposal, among others.

Manila Water’s consolidated costs and expenses, excluding depreciation and amortization, fell 18% to P5.77 billion, due to lower overhead costs and weaker demand for septic and sludge disposal and repairs due to the pandemic.

The company’s consolidated earnings before interest, income taxes, depreciation, and amortization (EBITDA) dropped 2% to P9.36 billion.

Its subsidiary Manila Water Philippines Ventures incurred a net loss of P280 million after its operating units such as Estate Water and Boracay Water posted lower contributions.

Manila Water Asia Pacific, which has business interests in Vietnam, Thailand, and Indonesia, also posted a P422-million net loss due to additional expenses in its investment in Cu Chi Water Supply Sewerage Co., Ltd. in Vietnam.

Meanwhile, Manila Water Total Solutions reported a P66-million net loss, which included the performance of its pipe-laying services, integrated used water services, and packaged water sales under the Healthy Family Purified Water brand.

Earlier this month, Manila Water and west zone concessionaire Maynilad Water Services, Inc. deferred their annual water rate adjustment for next year in solidarity with their customers amid the pandemic.

On Tuesday, shares in Manila Water at the stock exchange rose 0.14% or P0.02 to close at P14.02 each. — Revin Mikhael D. Ochave

Earnings of Megaworld’s GERI slump 85% 

Global-Estate Resorts, Inc. (GERI), the tourism and leisure subsidiary of Megaworld Corp., posted an 85% decline in attributable net income to P74.67 million in the third quarter due to lower revenues across all its business segments due to the coronavirus pandemic.

In a regulatory filing on Tuesday, GERI said its revenues in the three-month period stood at P943.39 million, almost half the P1.82 billion it generated last year.

Contributions across all business segments were down from year-ago levels: real estate sales by 42% to P764.42 million, rental income by 50% to P96.19 million and hotel operations by 97% to P5.41 million.

In a statement, the company said the decline is due to the lockdown implemented by the government to contain the virus outbreak. It resulted in slow construction work, dampened tourism activity, and low foot traffic in its mall.

Year-to-date, GERI’s attributable net income fell 54% to P619.46 million, while revenues dropped 35% to P3.86 billion.

“We have high hopes that the government’s efforts on the reopening of our economy will allow us to recover faster, especially for our hotel and mall operations. We are ready to welcome back our customers and provide them with safer but more enjoyable experiences in our developments,” GERI President Monica T. Salomon said in the statement.

The company is planning to launch commercial lots at its 300-hectare project in Laguna, and resume hotel operations at its developments in Tagaytay and Boracay.

Shares in GERI at the stock exchange inched up one centavo or 1.25% to close at 81 centavos apiece on Tuesday. — Denise A. Valdez

We watched the shows at the CCP Biennale, and so should you

By Joseph L. Garcia, Reporter

VIDEO REVIEW
Pamanang Pahina
Tanghalang Pilipino and

Anino Shadowplay Collective

Small Voice
With Alexa Kaufman
and Gerphil Flores

THE CULTURAL Center of the Philippines (CCP) opened its first Children’s Biennale on Halloween last month, but the festivities will go on until the 29th of November. Don’t worry — it’s all held online through the CCP and CCP Batang Sining Facebook pages, which means you can stay safe at home — and enjoy the programs again and again.

CCP Chair and former Miss Universe Margie Moran-Floirendo introduced the festival’s activities while placing emphasis on the program’s importance: that is, introducing and exposing children to the arts. She brought up research findings from 2008 by the Dana Foundation, a US-based organization focused on brain research. The research then had the goal of answering the question “Are smart people drawn to the arts or does arts training make people smarter?”

“Children motivated in the arts develop attention skills and strategies for memory retrieval, but also apply [these] to other subject areas,” said Ms. Floirendo. “Interest in the performing arts leads to the motivation that induces sustained attention that leads to the improvement of cognition. Genetic studies yielded candidate genes that explain individual differences in interest in the arts. There is a link between high levels of music training and long-term memory. In children, there is a link between the practice of music and skills in geometric representation and a development of a higher IQ (intelligence quotient). There is a correlation between music training and reading and sequence learning. Training in acting leads to memory improvement. Lastly, learning to dance by observation leads to the improvement of cognitive skills.

“It is for this reason that we are engaging children from ages six to 12 in a month-long festivity where we can encourage and develop creativity and artistic expression in children,” continued Ms. Floirendo. “With this endeavor, we hope to contribute to the development of children’s skills in reasoning, math, science, and reading. As the center for the arts, it is our mandate to continue developing the next generation audience, by exposing children to different art forms.”

While reminiscing about Halloweens past in the CCP, talking about the Philippine Philharmonic Orchestra’s (PPO) previous concerts where costumed children could engage with the musicians, Chris Millado, Vice-President and Artistic Director of the CCP said, “This year, because of the pandemic, and because we continue to be in quarantine, we reach out to you, wherever you are. We hope that through this online technology, we are able to continue to connect with you and continue to have fun with symphonic music.”

The program continued with the Tricks or Musical Treats PPO Family Concert which featured kid-friendly classical pieces, with archival footage and animated sequences. These included the “Amadeus Suite” from Eine Kleine Nachtmusik, the “Russian Dance” from The Nutcracker, and Prokoviev’s Peter and the Wolf. Trust us, this is for the entire family. Learning truly never gets old, because the PPO musicians talked about their instruments, naming the parts of this and that, and of course played a song or two. Some of the songs were classic pieces from composers like Bach, while some, like the woodwind musicians, played Disney hits like “Part of Your World.”

Here are a couple of the shows which can be found on the CCP Batang Sining Facebook page.

PAMANANG PAHINA
A show on the Children’s Biennale circuit, Pamanang Pahina combines storytelling and shadow puppetry which are adaptations of storybooks, performed by Tanghalang Pilipino and Anino Shadowplay Collective.

A timely tale called Mga Giyera sa Katawan ni Mark (Battles in Mark’s Body) by Dr. Luis Gatmaitan opens the show with a lesson on microbes, vaccines, and trusting medical science. It’s a logical and appropriate lesson for these times, and because of the puppets, visually absorbing.

A story titled Ang Bagong Kaibigan ni Bing Butiki (The New Friend of Bing the Lizard); butiki being the Tagalog word for the reptile by Yna Reyes and Jason Moss tells a lesson about unexpected friendships, allowing change through growth, and again, a timely lesson: the role of animals in our ecosystem. I’m sure you wouldn’t mind a spoiler or two: house lizards live peacefully in an old house, eating dangerous insects to their hearts’ content, and to the relief of the house’s owners. The family son, who had grown up tormenting lizards, comes back with a young daughter, whom he teaches about the good things lizards do for a house. The daughter then befriends the lizards — always at a respectful distance, since they have a job to do.

Older children would probably roll their eyes at these, but it’s good, wholesome fun for everybody else. To usefully harness that eye-rolling energy for your cynical tween, let them watch another video, Mga Likha sa Likod ng Anino (The Art Behind the Shadows). There, they can learn about the fundamentals of shadow puppetry, as well as learn from shadow puppeteers about the process (tell them to bring a flashlight so they can practice).

The shadow show left the best for last: another story by Dr. Gatmaitan called May Mga Lihim Kami ni Ingkong (Grandpa and I Have Secrets). It’s based on his own childhood experiences, and the story won second place at the 2000 Palanca Awards for Best Story for Children. The story, lovingly rendered in shadows (thus allowing more freedom to project your own face and feelings) is about a young boy dealing with his beloved grandfather’s dementia. It’s a must-see for every family member. Its obvious utility is to serve as a very simplified children’s explainer for senescence, senility, and death. For adults watching, it’s a great refresher course, and catharsis. For both, it tells a lesson: dementia may steal memories, but the person left behind is the same person you loved. We just wish there was an English version for English-speaking kids, but then, they could learn Filipino (and existentialism) through this too. Definitely watch this together, so parents can translate, and explain the more complex concepts.

A LITTLE VOICE
In case you have a budding singer on your hands, Small Voice is for them. It’s a short interview and performance with singers Alexa Kaufman and Gerphil Flores. Ms. Kaufman, at 11, is the youngest member of the Philippine Opera Company, and has played Young Cosette and Matilda on the stage. With a slight resemblance to then-child star Chloe Grace-Moretz, Ms. Kaufman tells her young audience that despite her responsibilities, she still has fun, and gives this advice to the audience: “Commit everything they do to God. Always be excellent, and enjoy everything you do.” She then sang the kundiman “Sa Kabukiran,” a feat for an 11-year old.

Gerphil Flores, meanwhile, still has residual glow from her Second Runner-up win in Asia’s Got Talent in 2015. Both singers, that is, Misses Kaufman and Flores, credit their talent to an early exposure to classical music (parents: wink, wink). “If it’s your passion to perform, then perform with your heart. Never give up on yourself,” she tells the kids, while advising patience, hard work, and discipline. Ms. Flores ended her interview with a performance of “Ang Maya.”

Other shows not to be missed include: The Philippine Ballet Theater’s performance of Cinderella on Nov. 15 at 4 p.m., and more shadowplay stories — Tahan Na, Tahanan, Nadia and the Blue Stars, and Inang Kalikasan’s Bad Hair Day on Nov. 22. Also watch out for animation shorts Augie Rivera’s Ang Katawan Ko at Ako, Jaypril Bataller’s Halimaw, Philex Merano/Dominic Barrios’ Work in Progress, Carl Papa’s ‘Nay, and Nonoy Dadivas’ Junkzilla.

To watch the shows and to get updates on the CCP Children’s Biennale, visit facebook.com/ccpbatangsining.

DMCI profit down 34% as pandemic hits business units

CONSUNJI-LED DMCI Holdings, Inc. on Tuesday reported a 33.7% drop in its attributable net income for the third quarter to P1.88 billion, mainly due to pandemic-related challenges and sales cancellation for its project in Davao City.

In a disclosure to the stock exchange, DMCI said its total third-quarter revenues from electricity sales, coal mining, construction contracts, real estate sales, nickel mining, and merchandise sales, among others, declined 18.5% to P18.04 billion.

Broken down, revenues from electricity sales went up 23.24% to P5.22 billion, coal mining dropped 59.4% to P3.08 billion, and construction contracts declined 20.8% to P3.56 billion.

Revenues from real estate sales improved 1.2% to P5.65 billion for the third quarter, while nickel mining contributed P430.30 million, up 332.07% from P99.59 million generated in the same period last year.

DMCI saw revenues from merchandise sales and other business segments drop 21.30% to P94.84 million.

In a separate disclosure, Semirara Mining and Power Corp. announced that it terminated its joint venture agreement with Meralco Powergen Corp. and St. Raphael Power Corp. in the construction, ownership and operation of the two-unit 350 megawatt PC sub-critical boiler power plant in Calaca, Batangas.

Shares in DMCI closed 4.02% higher at P5.17 apiece on Tuesday. — Angelica Y. Yang

Eagle Cement posts flat Q3 income amid lower sales

EAGLE CEMENT Corp. posted flat earnings of P1.4 billion in the third quarter, which it linked to the recovery of construction activity due to the relaxation of coronavirus-related lockdown rules.

In a statement on Tuesday, the cement manufacturer said it recorded net sales of P4.1 billion in the July-to-September period, down to 16% from a year ago.

But on a quarterly basis, the company’s net sales have improved almost triple or 192% against second quarter’s P1.4 billion.

“The resumption of major infrastructure projects and retail segment boosted sales. We are optimistic that fourth-quarter results will be better as more sectors of the economy are reopened,” Eagle Cement President and CEO John Paul L. Ang said in a statement.

In the nine months beginning on January, Eagle Cement’s net income stood at P2.7 billion, 43% down from the P4.7 billion it reported the same period last year.

Net sales during the period dropped 35% to nearly P10 billion, resulting in a gross profit decline of 39% to P4.1 billion.

To help it further in recovery, Eagle Cement is looking forward to completing its new mill in Bulacan by the first quarter of 2021. The facility will expand the company’s production capacity by 1.5 metric tons, increasing its total cement output to 8.6 million metric tons every year.

Shares in Eagle Cement increased four centavos or 0.25% to close at P16.04 each on Tuesday. — Denise A. Valdez

Facebook holds PHL digital summit

SOCIAL media giant Facebook will be holding its first digital summit in the Philippines from Nov. 11 to Dec. 9 on its dedicated summit website.

The summit will feature 20 sessions tackling a variety of subjects including the future of commerce, emerging trends in the age of social video, and inspiration from small businesses that are pivoting in the new normal.

Some of the speakers at the summit are Facebook COO Sheryl Sandberg who will be sharing a preview of new features meant to “enhance business and community connections,” according to a press release on Facebook; Facebook vice-president of business marketing and chief creative officer Mark D’Arcy who will talk about responsibility of marketers and their impact to online communities; and content creator Nuseir Yassin, aka Nas Daily, who will talk about his experience in connecting with a digital community of 25 million followers across 197 countries.

“We recognize that the challenges businesses are facing now may continue to evolve, as the situation remains fluid and uncertain. In the first Facebook Summit Philippines, we will shine a light on Filipino resilience, share insights and emerging trends on digital commerce, and provide tools and resources that will help Filipino businesses and communities move forward together in the new normal and beyond,” said Facebook Philippines country director John Rubio, said in the release.

The Facebook Summit can be accessed starting Nov. 11, 10 a.m., via https://forwardtogether.fb.com/ . — ZBC