VP Robredo named co-chair of drug committee

November 6, 2019 | 1:00 am

VICE PRESIDENT Maria Leonor G. Robredo has been appointed by President Rodrigo R. Duterte as co-chair of the inter-agency committee handling his drug war.

In an appointment paper released by the Palace on Tuesday, Executive Secretary Salvador C. Medialdea designates Ms. Robredo “as Co-Chairperson of the Inter-Agency Committee on Anti-Illegal Drugs (ICAD).”

The appointment comes less than a week after Mr. Duterte, in a speech in Malacañang on Oct. 28 and an interview with reporters after the event, said he will give the vice president authority over the anti-drug operations.

The inter-agency committee involves 41 government agencies subdivided into four clusters, namely: enforcement, justice, rehabilitation and reintegration, and advocacy.

The ICAD, led by the Philippine Drug Enforcement Agency (PDEA), was formed in 2017 through Executive Order (EO) No. 15.

The appointment paper allows Ms. Robredo, a member of the opposition Liberal Party, to hold the ICAD position until June 30, 2020.

However, Ms. Robredo’s spokesperson, Ibarra Gutierrez III said the co-chair position does not exist under EO 15.

“If they were serious they would not be giving this memorandum… If you look at the EO itself, mukhang wala pa ang (there is no) position that is being designated,” Mr. Gutierrez said in a briefing on Tuesday.

The appointment paper also directs PDEA, the Philippine National Police (PNP), Dangerous Drugs Board (DDB), and all other law enforcement agencies “to extend their full assistance and cooperation to the Vice President and ensure the success of the Government’s efforts in the war against illegal drugs.”

Presidential Spokesperson Salvador S. Panelo told reporters in a phone interview that should Ms. Robredo decline the appointment, she would not be fulfilling what she thinks the administration should do to address the problem on illegal drugs.

“Nothing will happen if she declines. It just means all her criticism are not real,” Mr. Panelo said.

The heads of various government agencies involved in anti-narcotics operations, meanwhile, welcomed Ms. Robredo’s appointment.

“The PDEA believes she can contribute on the advocacy and rehabilitation/reintegration clusters,” Director General Aaron N. Aquino said in a text message.

Mr. Aquino, who chairs the inter-agency body, earlier made a statement that Ms. Robredo will fail if appointed as “drug czar.”

He explained in a radio interview on Tuesday that he was only referring to the vice president’s lack of experience in law enforcement.

The PNP also said it is ready to give full assistance to Ms. Robredo.

“The PNP will extend its utmost courtesy, cooperation and full assistance to the Vice President,” Spokesman Brig. Gen. Bernard M. Banac said in a statement.

DDB Chairman Catalino S. Cuy, for his part, said the vice president could bring in fresh ideas on how to solve the drug problem. — Gillian M. Cortez and Philippine Star Emmanuel Tupas

Oct. inflation slowest in 3-1/2 years

November 6, 2019 | 12:32 am

By Luz Wendy T. Noble

THE OVERALL rise in prices of widely used goods eased for the fifth straight month to its slowest pace in nearly three-and-a-half years in October, the Philippine Statistics Authority (PSA) reported on Tuesday, citing year-on-year drops for the heavily weighted food and non-alcoholic beverages, transportation and utilities.

At the same time, some regions saw an uptick in food prices as people sought pork substitutes amid the African Swine Fever (ASF) onslaught.

October saw headline inflation slow further to 0.8% from September’s 0.9% — thus marking the second straight month of below-one percent inflation — and the 6.7% a year ago that was sustained from September and was a nine-year peak.

October’s reading was the slowest since April 2016’s 0.7%.

“The downtrend in inflation in October 2019 was primarily due to the annual drop in the index of the heavily weighted food and non-alcoholic beverages,” PSA Undersecretary Dennis S. Mapa said in a briefing in Quezon City.

He added that the decline in the indices for transport, housing, water, electricity, gas and other fuels also pulled inflation further down.

Last month’s pace also landed in the lower half of the Bangko Sentral ng Pilipinas’ (BSP) 0.5-1.3% estimate for the month and matched the median in BusinessWorld’s poll of 14 economists.

The most recent data brought year-to-date inflation to 2.6%, well within the central bank’s 2-4% target range for the whole of 2019 though still higher than an official 2.5% forecast full-year average.

Stripping out volatile prices of food and energy yielded a 2.6% core inflation in October that eased from September’s 2.7% and the year-ago 4.9%. Year-to-date core inflation clocked in at 3.3%.

Headline inflation in Metro Manila, however, was higher than the national rate at 1.3%, picking up from September’s 0.9% though slower than October 2018’s 6.1%. Other regions where inflation topped the national average were Cordillera Administrative Region (1.2%), Central Luzon (2.3%), Cavite-Laguna-Batangas-Rizal-Quezon (1.4%), Occidental and Oriental Mindoro-Marinduque-Romblon-Palawan (1.1%), Western Visayas (1.1%) and the Autonomous Region in Muslim Mindanao (one percent).

“The latest inflation outturn remains consistent with the BSP’s prevailing assessment of a benign inflation outlook, with average inflation still expected to firmly settle within the government’s target range…” BSP said in a statement Tuesday.

Mr. Mapa noted that prices of pork substitutes have risen amid the ASF outbreak. “Generally, ‘yung prices ng chicken ay tumataas, ‘yung beef din and ‘yung pork pababa. Inflation on egg, milk and cheese… pataas na siya nung nakaraang apat na buwan (Generally, prices of chicken and beef rose, while price of pork went down. Inflation on egg, milk and cheese has been picking up in the past four months),” he said.

According to National Economic and Development Authority Officer-in-Charge and Undersecretary for Regional Development Adoracion M. Navarro, the government is monitoring the outbreak’s price impact. “The livestock industry in the said ASF-stricken areas, which accounts for 21.7% of the country’s total hog production last year, remains at high risk. The government and private companies must collaborate to manage, contain and control the spread of the disease,” Ms. Navarro said in a statement on Tuesday.

Analysts think that inflation has already bottomed out as base effects may have worn off. “Base effects played a major role in forcing the heading print below one percent for a second straight month in 2019 with heavyweights food and transport posting deflation… But with the base effects from the peak of 2018 fading quickly, we expect inflation to revert to target as early as December,” ING-NV Manila Senior Economist Nicholas Antonio T. Mapa said in a note to reporters.

Security Bank Corp. Chief Economist Robert Dan J. Roces said in a separate e-mail to reporters: “We expect inflation to have bottomed out in October and start to pick up this November on dissipating base effects and higher consumer spending for the holidays.”

Receding inflation since last year’s multi-year peaks has enabled the central bank to partially dial back 2018’s 175 cumulative basis point increase in benchmark interest rates by a total of 75 bps in three moves to 3.5% for overnight deposit, four percent for the reverse repurchase facility and 4.5% for overnight lending.

The BSP has also cut banks’ reserve requirement ratio four times this year by a total of 400 basis points (bps) to 14% for universal and commercial lenders and four percent for thrift banks starting December. In the latest RRR easing last month, the reserve ratio of rural banks that will go down to three percent in November was left untouched.

Governor Benjamin E. Diokno told Bloomberg and ABS-CBN News Channel on Monday that monetary authorities are done with policy easing for the year.

“We think the BSP’s signaled pause on monetary easing for the year is prudent; and with just 75bps slashed from 2018’s 175bps rate hike leaves the central bank ample policy leeway to manage any inflationary spikes in 2020, if at all,” ING’s Mr. Mapa said.

Headline inflation rates in the Philippines (October 2019)

November 6, 2019 | 12:32 am

Factory output decline persists

November 6, 2019 | 12:31 am

FACTORY OUTPUT in the country extended its declining streak to the 10^th straight month in September, the government reported on Tuesday.

Preliminary results of the Philippine Statistics Authority’s (PSA) latest Monthly Integrated Survey of Selected Industries showed factory output — as measured by the volume of production index — contracting by three percent year on year in September versus the revised 9.7% decline in August and the 1.3% growth in September 2018. Factory production has been falling since December last year.

Factory output decline averaged eight percent so far this year compared to the 10.6% growth average in 2018’s comparable nine months.

The Nikkei Philippines Manufacturing Purchasing Managers’ Index (PMI), which uses a different set of variables, decreased that month to 51.8 from August’s 51.9 and last year’s 52. A reading above 50 signals improvement in business conditions from the preceding month, while a score below that point indicates deterioration.

Average capacity utilization — the extent by which industry resources are used in the production of goods — was estimated at 84.4% with 13 of the 20 sectors registering capacity utilization rates of at least 80%.

The report noted production of eight out of the 20 major industry groups fell, namely: electrical machinery (-10.4%); petroleum products (-17.3%); transport equipment (-8.3%); miscellaneous manufactures (-13.5%); furniture and fixtures (-30.1%); textiles (-3.5%); non-metallic mineral products (-1.8%); and leather products (-22.3%).

In a statement, the National Economic and Development Authority (NEDA) said that while the manufacturing index dropped in September, some subsectors “have shown improvements.”

“[W]e have observed improvements in various subsectors which can be attributed to the upcoming holiday season alongside lower inflation, stable exchange rate, and lower interest rate,” NEDA Officer-in-Charge and Undersecretary for Regional Development Adoracion M. Navarro was quoted in the NEDA statement as saying.

Ms. Navarro cited growth in beverages (13.9%); tobacco products (48.6%); basic metals (16.9%); fabricated metal products (33.3%); wood and wood products (22.7%); machinery except electrical (13.1%); chemical products (5.1%); paper and paper products (13.2%); printing (79.9%); and rubber and plastic products (6.6%).

Other segments that also posted growth were footwear and wearing apparel (8.1%) and food manufacturing (2.8%).

Economists interviewed attributed manufacturing’s weakness to both domestic and external factors.

“Manufacturing production growth rates in aggregate continue to drop since December 2018 as manufacturers faced several hurdles, chief of which could be variable power and water rates, these being essential inputs to manufacturing activity,” said Security Bank Corp. Chief Economist Robert Dan J. Roces in an e-mail.

“Moreover, some export-oriented manufacturers have been affected by external headwinds particularly from a subdued global outlook brought on by the US-China trade war,” he added.

For UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion, manufacturing’s weakness can be ascribed to weak global trade brought mainly by the protracted US-China trade war that has been raging for nearly 16 months now.

“This manufacturing drop may have been due to the trade problem… because of the composition of the particular sub-sectors that are largely and majorly export-oriented. It should be noted that exports this year have been lackluster due primarily to the perception about the prospects of world trade moving forward,” Mr. Asuncion said in a separate e-mail.

According to PSA data, exports of manufactured goods accounted for 83.2% of the country’s total merchandise exports as of August. Manufactured goods declined by 0.2% year on year to $38.84 billion in the first eight months of 2019, buoyed mostly by a 1.9% growth in chief goods export electronic products. Excluding export sales from electronic products, merchandise sales of manufactured goods during that period declined by 4.3% to $12.79 billion.

Moving forward, Mr. Asuncion sees manufacturing production to improve in the coming months given positive developments in the trade spat between the two economic superpowers.

“With the US and China said to be progressing with the first phase of their major trade deal after months of tariff escalation, the general outlook on global trade seems to be more stable. This means that perceptions and expectations are better than when no trade agreement was in sight,” Mr. Asuncion said.

“Since September, trade talks between the two biggest economies of the world have gone through much progress and more positives particularly those from the negotiating table have been developing. The positives may bode well for a reversal of the manufacturing growth rate decline towards the end of 2019 and early 2020,” he added.

A Reuters report last Thursday said that despite the abrupt cancellation of the Asia-Pacific Economic Cooperation Summit in Chile that could have led to the US and China signing a much-needed trade deal to de-escalate the trade war, Chinese officials continue to express optimism that Beijing and Washington could still sign a trade deal next month. For Security Bank’s Mr. Roces, the government’s catch-up spending amid easing inflation levels “should boost manufacturing activity” early in the fourth quarter due to the expected higher demand.

“The lower interest rates on the back of policy cuts by the BSP (Bangko Sentral ng Pilipinas) will also help with capital expansion and the extension of the validity for 2019 infrastructure projects to next year should regain higher capacity utilization as well given that more than half of establishments are operation below the national average capacity,” Mr. Roces said. — Edwin C. Aruta

PHL fails in ‘control of corruption,’ but passes more than half of MCC indicators

November 6, 2019 | 12:30 am

THE PHILIPPINES failed in nearly half of indicators tracked by a US foreign assistance agency, with the country’s failure particularly in “control of corruption” putting at risk its chances of becoming eligible for grants under this program next year.

The Millennium Challenge Corp. (MCC) scorecard for the Philippines for next year showed that the country passed 12 of 20 indicators used to determine eligibility for grants under its program.

The MCC released the 2020 country scorecards on Nov. 1. “MCC scorecards are a key component in the agency’s annual competitive selection process that determines which countries are eligible to develop compacts — grant investments that last five years,” the agency said in a statement on its Web site.

Formed in 2004, the MCC provides grants aimed at promoting economic growth, reducing poverty and strengthening institutions.

Sought for comment, Socioeconomic Planning Secretary Ernesto M. Pernia said in a mobile phone message: “It means the Philippines can’t avail itself of MCC funding. But it’s not critically important as we have several other funding sources.”

At the same time, the MCC explained that “The scorecard indicators can also be used by businesses, investors, and the private sector to inform investment decisions and better understand the operating environment in a specific country.”

The government has been wooing more American investments despite President Rodrigo R. Duterte’s occasional anti-US remarks, with Finance Secretary Carlos G. Dominguez III noting in a Philippine Economic Briefing Roundtable Lunch on Oct. 17 in Washington D.C. that while “the US business community expressed interest in participating in this [‘Build Build Build’ infrastructure] program on several occasions… no serious offer has come.”

The Philippines is counted among the 60 “low-income” countries which MCC classifies as candidates for eligibility for funding next year, together with the likes of India, Indonesia, Laos, Vietnam and Ukraine, among others.

In order to determine whether a country could be eligible, the MCC Board considers whether a country passed at least 10 of the 20 indicators, with at least one pass in each of the three main categories of “economic freedom,” “ruling justly” and “investing in people.”

A country must also pass either the “political rights” or “civil liberties” indicator, as well as the “control of corruption” indicator. “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,” MCC said.

The Philippines passed six out of eight “economic freedom” indicators, namely: fiscal policy, inflation, regulatory quality, trade policy, gender in the economy, as well as land rights and access, but failed in terms of access to credit and business start-up.

Under “ruling justly,” the Philippines met the grade in terms of political rights, civil liberties and government effectiveness, but failed in control of corruption, rule of law and freedom of information.

Finally, in terms of “investing in people”, the country passed in natural resource protection, girls secondary education enrollment rate and child health, but failed in health expenditures, primary education expenditures and immunization rates.

The Philippines had been eligible for $433.91 million in MCC grants in a previous five-year compact signed in September 2010.

The country used $385.072 million of those 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

Ayala Land books higher profit

November 6, 2019 | 12:10 am

AYALA LAND, Inc. (ALI) reported a 12% growth in its earnings during the first nine months on the back of the robust growth of its real estate business.

The net income of the listed property developer stood at P23.2 billion during the nine-month period, as total revenues inched up 2% to P121.7 billion. Its real estate business added P119.7 billion to the pie from the growth of its office, commercial and industrial lot sales.

ALI was able to launch P37.8 billion worth of residential projects in the July to September period, which bought its total launches year to date to P57.3 billion.

“Third quarter financial results were in line with our expectations, following a similar pattern to what we have seen in the first half of the year,” ALI President and Chief Executive Officer Bernard Vincent O. Dy said in a statement.

He added the company was able to launch more development projects during the period, which he hopes will sustain the company’s growth momentum heading into 2020.

Revenues from ALI’s property development business reached P85.4 billion in the nine months to September. This was driven by a 51% rise in office for sales revenues to P11.1 billion and a 16% growth in commercial and industrial lot sales to P6.5 billion.

Reservation sales added P108.5 billion, coming from the strong performance of its subsidiaries Alveo Land Corp. and Avida Land Corp.

For the commercial leasing business of ALI, revenues increased 16% to P27.6 billion due to new malls opened during the period. It was able to record a 15% growth in shopping center revenues to P15 billion from its new malls in Parañaque City, Pasig City, Makati City and Bacolod City.

Office leasing revenues likewise increased 26% to P7.2 billion, which came from new offices in Makati City and Quezon City. Hotels and resorts revenues also jumped 17% to P5.4 billion from its properties in Cebu and Palawan.

ALI spent P78.2 billion in capital expenditures during the nine-month period. This was dedicated mostly to the expansion of the company’s residential and leasing assets.

It is planning to conduct a fixed-rate bond issuance this month to raise up to P10 billion, which will fund the company’s land acquisitions and developments.

Shares in ALI on the stock exchange traded flat on Tuesday to close at P49 each. — Denise A. Valdez

PLDT Global, IRemit partner on payment app

November 6, 2019 | 12:09 am

PLDT GLOBAL Corp. (PGC) has partnered with remittance firm I-Remit, Inc. to offer its mobile phone app payment service to Filipino expatriates in Hong Kong, Singapore, Australia, Canada, United Kingdom, and Italy, among others.

In a statement on Tuesday, Smart Communications, Inc. said PGC, a wholly owned subsidiary of PLDT, Inc., has teamed up with remittance company I-Remit to launch its Free Bee payment service worldwide.

“This means that overseas Filipinos in Hong Kong, Singapore, Australia, Canada, United Kingdom, Italy and other parts of the world can now make Free Bee payments with zero service fees,” it added.

Free Bee is an ad-based calling app that offers users a two-minute free international call to the Philippines, Smart also noted.

Smart said this new service is a “game changer” for Filipino workers abroad because it enables them to reach their families in the Philippines who do not have an access to the internet or a smartphone device.

The application also offers longer calls and ad-free options through the Premium Free Bee voice call plans from global retailers or via in-app and online purchases, it added.

Smart noted that Free Bee was recognized recently as Telecom Asia’s “most innovative voice solution.”

Through this payment mode, users will have their service purchases credited directly to their accounts.

“This is part of our commitment to bring more innovative and convenient digital solutions to every Filipino in every corner of the world, and hopefully, help make their connections to their families back home stronger, and their lives better,” Albert Villa-Real, PGC chief commercial officer, was quoted as saying in the statement.

PGC is under PLDT’s international carrier business group. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

Shrinking refining margins pull down Petron’s income

November 6, 2019 | 12:08 am

PETRON Corp.’s income dropped 70% in the first nine months.

PETRON CORP. posted a 70% fall in its net income as of September to P3.6 billion largely because of its shrinking refining margins, the company told the stock exchange on Tuesday.

The company said it managed to book a “modest” profit during the period “with Petron Malaysia’s contributions and its parent company’s extensive efforts to manage costs and keep the business viable under the current volatile market condition.”

It said the profit slide was “owing to prolonged depressed refining margins in the region and its refinery shutdown.” The company did not release profit and revenue figures for the third quarter alone.

Consolidated revenues in the three quarters dropped by 9% to P381.7 billion, with a decline in sales volume after a 7% decrease in Philippine sales as a result of the emergency shutdown in April of its Limay, Bataan refinery.

The refinery, which has a capacity of 180,000 barrels per day, was forced to close after the April 22 earthquake. It resumed normal operations in early August.

Malaysia’s sales volume increase of 2% partially softening the impact of Philippine operations. Petron said global oil prices remained volatile and lower compared with the past year because of ongoing trade wars.

In the Philippines, the company noted that despite the decrease in volumes, Petron stations within freeport zones performed better than last year. It said under the current regime, enterprises such as service stations within freeport zones in Clark and Subic do not pay local and national taxes, including excise taxes.

Petron retail volume inside the Clark freeport recorded a 54% rise over the same period a year ago. It did not disclose comparative numbers.

The company quoted Ramon S. Ang, its president and chief executive officer, as saying: “This level playing field is what we hope will prevail in the entire country once the fuel marking program is in place. We fully support and look forward to its implementation but at the same time, we reiterate that this mechanism will only work if all players go by the same rules.”

Petron Freeport Corp., the listed company’s wholly owned subsidiary, earlier reported a 14% increase in consolidated volume and a 20% improvement in net income for the first semester.

The unit, whose performance is in contrast to that of its parent firm, manages Petron stations inside the Subic freeport zone.

“Oil smuggling has worsened in recent years and it’s not only us in the industry but also the government and the entire nation that suffer because of it,” Mr. Ang said.

As of September, Petron opened at least 100 new stations in the Philippines, and 38 new stations in Malaysia. It has more than 2,400 stations in the Philippines alone, remaining the local oil company with the largest network of service stations in the country.

“Petron remained the country’s leading oil company cornering about a third of domestic demand,” it said.

On Tuesday, shares in the company slipped by 0.59% to close at P5.03 each. — Victor V. Saulon

Need art for your living room? Go shopping online.

November 6, 2019 | 12:08 am

THE EXPRESSIVE eyes of the portrait of an Aeta woman carrying a monitor lizard inspire the viewer to take a closer look at the painting. Ryan D. Orig, the painter, said that the image was inspired by an Aeta woman whom he recalled would pass by his family’s house in the province when he was a child. Aeta Girl with Bayawak is one of five portraits of indigenous people by Mr. Orig which are on view and for sale through the “online art marketplace” at FilipinoArt.ph (https://www.filipinoart.ph/).

Alongside Mr. Orig’s portraits on FilipinoArt.ph are Armenius Aralar’s painting titled Jose Rizal and the Gang, August Punzal’s abstracts inspired by places in Egypt, Hermel Alejandre’s painting The Virgin and the Young People, Jose Ehric Egualada’s images depicting life in the farms and fields, and Pamela Lei Bermudez’s views of Pinoy livelihood painted onto cubes.

The launch of the online platform coincided with an exhibition featuring works by the artists at the Art Circle Gallery in Ayala Malls Circuit, Makati City.

Developed by Chanz Global, an IT and digital marketing solutions company which is also behind PropetyAsia.ph website, the digital platform was created “to help Filipino artists to be seen by a wider audience and for art lovers to have easier access to art,” a press release explained.

“FilipinoArt.ph takes away those boundaries by showcasing a whole lot more artists and offer prices for every Juan. And if an original piece of art is still inaccessible because of the price, we also offer prints via our partner, No Blank Walls; it’s a less expensive way of getting beautiful art into your home, office, or personal space,” FilipinoArt.ph CEO and founder Yuri Stegeman was quoted as saying in the press release.

“We started with an online marketing platform [for property] at first. But then we realized that when people buy something, the house is empty.” Mr. Stegeman told BusinessWorld.

“Everybody needs art eventually in their house. [The thing] is if you go for affordable art and go to a department store, [the artworks] are all the same. It’s a bit basic. So, we came up with this platform and tried to see how many artists out there that would be interested,” he said.

HOW IT FUNCTIONS
FilipinoArt.ph currently showcases paintings, drawings, sculptures, photographs, and mixed media works by 37 Filipino visual artists. The website uploads new works every quarter.

According to Mr. Stegeman, they work with experts for the curation of the artists’ profiles and body of work during the selection process. He added that the applicants must be practicing artists. Applications to get on the website is done through an online submission form.

The website is equipped with a “View in a Room” option which shows how the artwork would look like when displayed in a living room. To purchase a piece, the buyer may select the original or a print of the work (except for sculptures). The have to sign in or log in to their account prior to filling out a shipping address and mode of payment.

For Mr. Stegeman, developing an online art marketplace “helps artists to be seen and for art lovers to have easy access to art.”

“[The] problem is that, traditionally, only art from established artists could be easily found. But how can you become an established artist if no one knows you exist?

“People are diverse, and so is art. It is all very subjective. The Internet provides plenty of space to showcase this diversity,” he said. — Michelle Anne P. Soliman

ACEI transfers right to buy stake in Batangas project to local unit

November 6, 2019 | 12:07 am

AC ENERGY, Inc. (ACEI), the Ayalas’ energy investment arm, has transferred its right to buy the 20% stake of its partner in a coal-fired power plant in Batangas to its unit handling Philippine operations.

In a disclosure to the stock exchange, publicly listed AC Energy Philippines, Inc. said on Tuesday that it had signed a deed of assignment with ACEI for the transfer of the right to buy Axia Power Holdings Philippines’ stake in South Luzon Thermal Energy Corp. (SLTEC). No amount was given on the value of the shareholding.

“Completion of the Company’s acquisition of Axia Power’s ownership stake in SLTEC is subject to satisfaction of certain conditions precedent,” said AC Energy Philippines, formerly Phinma Energy Corp.

SLTEC owns and operates a coal-fired power plant in Calaca, Batangas with two units, each with a capacity of 135 megawatts (MW) or a total of 270 MW.

AC Energy Philippines did not cite the reason for the transfer but in October, ACEI transferred a number of power plant entities to the unit as part of its plan to constitute the listed firm as its platform for growth and opportunity in the country.

The transferred assets include a pipeline of power projects that were chosen based on each project’s capability to be constructed and operated in a sustainable and profitable manner.

The group said the pipeline projects put AC Energy Philippines in a better position to implement its growth strategy and to be more responsive to the rapidly growing power supply needs of the country.

Last month’s transfer arrangements, however, involved mostly renewable energy assets as the company targets to be the local leader in renewables with its goal to reach an installed capacity of 2000 MW by 2025.

In a separate disclosure, AC Energy Philippines said that it had signed on Tuesday a share purchase agreement with the Philippine Investment Alliance for Infrastructure (PINAI) for the acquisition of the latter’s 31% effective preferred equity ownership and 15% effective common equity ownership in North Luzon Renewables Energy Corp.

North Luzon Renewables owns and operates an 81-MW wind farm in Pagudpud, Ilocos Norte. It is a joint venture of ACEI, UPC Philippines HoldCo I B.V., Luzon Wind Energy Holdings B.V., which is an affiliate of Mitsubishi Corp., and PINAI. The wind farm started its commercial operations in November 2014.

PINAI is a fund composed of Macquarie Infrastructure Holdings (Philippines) Pte. Ltd., Langoer Investments Holding B.V., and the Government Service Insurance System.

The acquisition is subject to the satisfaction of certain conditions precedent, including the approval by the Philippine Competition Commission.

On Tuesday, shares in AC Energy Philippines dropped by 1.79% to close at P2.74 apiece. — Victor V. Saulon

PETA combats the stigma of HIV/AIDS through art

November 6, 2019 | 12:07 am

THE Philippine Educational Theater Association (PETA) is closing its 52^nd season with the Acting on HIV campaign.

Done in partnership with HIV advocacy organizations LoveYourself, Inc. and The Red Whistle, the campaign aims to promote awareness about the disease, debunk its myths and misconceptions, and eradicate the stigma towards Persons Living With HIV (PLHIV).

PETA Artistic Director Maribel Legarda noted during the campaign’s launch at the PETA Theater Center on Oct. 18 that the theater company had previously been involved in HIV/AIDS programs based in the Mekong region between 2000 to 2007. She noted that the Philippines at that time had the lowest HIV-AIDS statistics among Asian countries. The growing number of cases in recent years is what prompted them to pursue the campaign locally.

Data from the July HIV/AIDS and Art Registry of the Philippines (HARP) stated that there were 1,111 newly confirmed HIV-positive individuals (29% higher than the diagnosed cases in the same period last year). Ninety-four percent (1,048) of the newly diagnosed were male, according to HARP data. The median age was 28 years old — the age ranged from six- to 64-years-old. More than half of the newly diagnosed (51%, 567) were 25- to 34-years-old and 31% (348) were 15- to 24-years-old at the time of testing (https://www.aidsdatahub.org/hivaids-and-art-registry-philippines-july-2019-epidemiology-bureau-department-health-2019).

“The disease is happening not because there’s no science. As a matter of fact, there are medicines now that will allow for you to live a normal life [with HIV]. But what’s worse and what’s killing people is the stigma, ignorance, and the lack of compassion,” Ms. Legarda said.

“So, we felt that the arts would be the best place to be able to [give] these messages.”

At the forefront of the campaign is Rody Vera’s drama, Under My Skin, an anthology about Filipinos living with HIV — including friends and relatives of patients, HIV advocates, and health practitioners. Directed by Melvin Lee, the play will star Cherry Pie Picache, Roselyn Perez, Miguel Almendras, Mike Liwag, and Anthony Falcon. It will run from Feb. 7 to March 15, 2020 at the PETA Theater Center in Quezon City.

There will be talks with HIV experts after every show. In partnership with LoveYourself Inc. and HASH-HIV & AIDS Support House, audience members may avail of free HIV screening before or after the show.

CAMPAIGN ACTIVITIES
While the play will be held next year, the campaign actually begins this month with workshops, exhibits, and an online EduSeries.

The Red Whistle, in collaboration with photographer Niccolo Cosme of the Project Headshot Clinic, will launch an HIV-AIDS photo exhibit, also titled Under My Skin, on Dec 1. It will feature around 200 headshots of personalities from the theater industry.

“[…] We use the arts to help [people] understand the reality of the situation, so that hopefully they change their hearts, behavior, and attitude towards the problem, and eventually change their minds and actions. Without that change in heart, there is no change in behavior,” Benedict Bernabe, president of The Red Whistle, said.

At an eight-hour workshop, young people learn more about the advocacy through arts activities such as music, dance, creative writing.

To engage the public through social media, informative videos titled the EduSeries, featuring stories of PLHIV, will be uploaded on PETA’s Facebook page.

“The best way for us to respond to this epidemic is for us to learn how we love ourselves and to share it with other people because we want to create ripples of positive change in the community,” LoveYourself project manager Danvic Rosadino said.

For updates on the campaign activities, visit PETA’s official Facebook page at www.facebook.com/PETATHEATER. For tickets and show buying inquiries, contact PETA at petatheater@gmail.com, or TicketWorld at www.ticketworld.com.ph and 891-9999. — Michelle Anne P. Soliman

Robinsons Land earnings inch up on revenues

November 6, 2019 | 12:06 am

EARNINGS OF Robinsons Land Corp. (RLC) inched up in the third quarter as an almost threefold jump in its expenses dampened the growth of its revenues during the period.

The Gokongwei-led property developer reported a 3% increase in its attributable net income to P3.31 billion during the July to September period. Total revenues soared 79% to P16.39 billion but a 175% growth in total costs to P10.57 million weighed on its bottom line.

In a statement yesterday, the company said its improved top line can be linked to revenues from its Chengdu Ban Bien Jie project in China. This started to be realized in the third quarter, amounting to P8.84 billion or 28% of the company’s consolidated revenues.

Its residential division also added P6.34 billion in net pre-sales during the third quarter to rise 65% from last year. Among the projects it launched in the period is a 30-hectare township project located in Quezon City and Pasig City. Together with Shang Robinsons Properties, Inc., it also launched a 9,118-square meter luxury residential project in Bonifacio Global City.

For the nine months to September, RLC’s attributable net income rose 12% to P7.31 billion. Total revenues increased 40% to P31.18 billion as costs climbed 74% to P17.62 billion.

By business segment, revenues from the company’s office buildings grew the most in the nine-month period at 27% to P3.55 billion, comprising 11% of the pie. This came from higher rental and renewal rates from office spaces launched last year.

Hotels and resorts posted the next highest growth at 14% to P1.69 billion, representing 6% of the company’s revenues. It was driven by the strong performance of its existing developments in Tagaytay, Cebu, Palawan, Bacolod and Davao and its new hotels in Tacloban, Iligan and Greenhills.

Revenues from its commercial centers rose 10% to P9.7 billion, contributing the biggest to the company’s top line at 31%. The growth can be traced to RLC’s stable same-mall rental revenues and the added revenues from its four new malls opened last year.

RLC’s residential division contributed P7.1 billion to increase 9% year on year, while the industrial and integrated developments division added P293.9 million or a decline of 89% from a year ago.

Capital expenditures of the company stood at P18.69 billion at end-September, which went to the development of malls, offices, hotels and warehouse facilities, acquisition of land and construction of residential projects.

Shares in RLC increased 60 centavos or 2.27% to close at P27 each on Tuesday. — Denise A. Valdez

1...9,0429,0439,044...13,014 Page 9,043 of 13,014