PHL raises 92 billion yen from samurai bonds

August 2, 2019 | 6:19 pm

By Karl Angelo N. Vidal, Reporter

THE Philippines raised ¥92 billion ($860 million or P44.3 billion) from the sale of ”samurai” bonds across four tenors, amid strong demand from investors.

According to a report from IFR, the government sold ¥30.4 billion in three-year bonds, carrying a coupon rate of 0.18%. The bonds were sold 23 basis points (bp) above the benchmark rate.

Another ¥21 billion was also raised via five-year papers with a coupon of 0.28% and 33 bps above benchmark. The state also sold ¥17.9-billion seven-year debt at a 0.43% coupon rate and a spread of 45 bps above benchmark.

Meanwhile, ¥22.7 billion was generated through a 10-year bond offer. This was priced at 0.59% and 53 bps above benchmark.

S&P Global Ratings assigned a “BBB+” long-term foreign currency rating to the yen-denominated senior unsecured notes issued by the Philippine government.

National Treasurer Rosalia V. De Leon said the government saw strong demand for the samurai bonds, prompting them to upsize the offer from the $750 million it announced previously.

“We have a strong book. We have more than $1 billion, but we decided to take only ($860) million,” Ms. De Leon told BusinessWorld in a phone interview on Friday.

“We intended to offer only $750 million, but because of the strong reception and to show appreciation to our investor for the good pricing… and we have new investors who also participated, we decided to increase the volume,” she added.

The Treasury tapped Daiwa, Mitsubishi UFJ Morgan Stanley, Mizuho, Nomura and SMBC Nikko to serve as the transaction’s lead managers.

The amount raised was smaller than the ¥154.2 billion ($1.39 billion) worth of “samurai” debt papers it issued in August 2018 in three-, five- and 10-year tenors, fetching 0.38%, 0.54% and 0.99% coupons, respectively.

The Philippines, one of Asia’s most active sovereign bond issuers, plans to borrow P1.189 trillion this year. Documents from the latest Development Budget Coordination Committee meeting showed that 73% of total borrowings will be sourced domestically, while the balance will be from foreign creditors.

This will be used to fund a budget deficit programmed at P624.4 billion, equivalent to 3.2% of gross domestic product, and support increased government spending programmed at P3.774 trillion.

The government returned to offshore market twice in May, raising €750 million ($842.33 million) in eight-year global bonds, as well as 2.5 billion renminbi ($363.3 million) in three-year “panda” bonds.

In January, the Philippines also sold $1.5 billion in 10-year offshore dollar bonds.

Ms. De Leon said the Japanese bonds will be settled on Aug. 15.

NBI to include retired generals in STL probe

August 2, 2019 | 6:18 pm

JUSTICE Secretary Menardo I. Guevarra said that the National Bureau of Investigation will be investigating retired military and police generals who own small town lottery (STL) franchises after allegations were made that they had not been remitting the government’s share of the earnings.

“Definitely mako-cover rin sila kasi malawakan nga ’yung investigation na gagawin ang NBI (They definitely will be covered too because the NBI investigation will be broad),” said Mr. Guevarra in a press briefing on Friday, Aug. 2.

On Thursday, Senator Panfilo M. Lacson said that retired generals who had STL franchises from the Philippine Charity Sweepstakes Office (PCSO) have not been remitting the government’s share of their earnings.

The Justice chief said that one of the specific areas of the investigation will be the non-remittance of revenues of the gaming operations.

“I think one specific area ng investigation will be ’yung non-remittance or ’yung kakulangan sa nireremit to the government na mga revenues from gaming operations kasi dun nadadaya ’yung government (I think one specific area of the investigation will be the non-remittance or the inadequate remittance to the government of the revenues from gaming operations because the government is being cheated),” said Mr. Guevarra.

However, Mr. Guevarra said that the investigation into these retired generals does not necessarily mean they are involved in the alleged corruption at PCSO.

“Hindi naman natin sinasabing may ginagawang mali or parang napaboran ’yung mga generals (We do not mean that those generals did something wrong or were favored),” he said. “For all we know baka nasa ayos rin naman ang kanilang mga permits, kanilang mga franchises (For all we know, all their permits, their franchises are proper).”

On July 26, President Rodrigo R. Duterte ordered the closure of all gaming operations under the PCSO in a videotaped message, alleging widespread corruption. However, the President lifted the suspension on lotto operations after four days.

Meanwhile, all the other gaming operations with franchises, licenses, and permits given by the PCSO, such as STL, Keno, and Peryahan ng Bayan remain suspended pending investigation. — Vince Angelo C. Ferreras

No Martial Law in Negros until situation assessed — Lorenzana

August 2, 2019 | 6:18 pm

DEFENSE SECRETARY Delfin N. Lorenzana said martial law in Negros Oriental province should not be declared until the recommendations of security officials on the ground and local government executives have been fully assessed.

This as Malacañang on Friday said that claims that the recent killings in the province were government-sponsored are “baseless” and “malicious.”

Mr. Lorenzana said the Philippine National Police (PNP), the Armed Forces of the Philippines (AFP), and local officials should first explain why the recent spate of killings would warrant such a declaration.

“Ako (As far as I am concerned) as of now, hindi ko pa nakikita na kailangan (I don’t see the need)… but we will wait for the recommendation of the PNP, AFP, and local government,” Mr. Lorenzana told the media after the turnover ceremony for the Regional Evacuation Center in Zarraga, Iloilo on Thursday.

“Pag sinabi nila na (When they say) ‘please declare martial law,’ then we might recommend, but until such time they can show us na there is a need for that, then hindi pa siguro (perhaps not yet),” he added.

Mr. Lorenzana said he believes that most of these killings could be “politically motivated.”

“[They are] more politically motivated than anything else,” he said, noting that political rivalries could still be intense in the aftermath of the May 2019 elections.

On Thursday, Presidential Spokesperson Salvador S. Panelo told reporters that President Rodrigo R. Duterte might use his “emergency powers under the Constitution to quell the lawless violence engulfing the island.”

Twenty people have been killed including four police officers, by either unidentified motorcycle-riding suspects or alleged members of the communist New People’s Army (NPA) in Negros Oriental between July 18 and July 27, said the PNP.

Meanwhile, on Friday Mr. Panelo issued a statement calling recent remarks by Bayan Muna Chairperson Neri J. Colmenares as “baseless” and “malicious.” Mr. Colmenares had blamed the PNP for the spate of deaths in Negros Oriental.

“The remarks of former senatorial candidate Mr. Colmenares, along with his blaming the police for the spate of deaths is… baseless and laced with malice,” Mr. Panelo said.

He said Malacañang agrees that justice must be given to the victims and their families.

“Such utterances of Mr. Colmenares are but a part of the propaganda of the Communist Party of the Philippines (CPP), to which obviously he subscribes [to] and parrots, to discredit the Administration and the security forces of the government, while trying to give himself the appearance of relevance after being repeatedly repudiated by the electorate in the national elections. Apparently, he has purposely turned deaf to the voice of the people,” Mr. Panelo said further.

The Catholic church has appealed for an end to the killings, with Bishop Gerardo A. Alminaza of San Carlos calling for prayer and action in a pastoral appeal issued last July 27.

“This pattern of systemic killings is alarming. Who will be next? We continue to express our collective cry, ‘End this evil madness! End these barbaric acts meant to instill fear!,’” he said in the letter. — Emme Rose S. Santiagudo and Arjay L. Balinbin

National Artist Ryan Cayabyab receives Ramon Magsaysay award

August 2, 2019 | 6:18 pm

THE Ramon Magsaysay Award Foundation on Friday announced its 2019 awardees, which include National Artist for Music Raymundo “Ryan” P. Cayabyab.

“The Board of Trustees of the Ramon Magsaysay Award Foundation (RMAF) today announced that this year, five individuals from South Korea, Myanmar, India, Thailand, and the Philippines will receive Asia’s premiere prize, the Ramon Magsaysay Award,” the RMAF said in a statement.

Mr. Cayabyab is being recognized for “his compositions and performances that have defined and inspired Filipino popular music across generations,” said the RMAF.

The other awardees are Kim Jong-ki of South Korea, Ko Swe Win of Myanmar, Ravish Kumar of India, and Angkhana Neelapaijit of Thailand.

South Korea’s Kim Jong-ki is being awarded for “his quiet courage in transforming private grief into a mission to protect Korea’s youth from the scourge of bullying and violence.”

For his part, Ko Swe Win of Myanmar is being recognized for “his undaunted commitment to practice independent, ethical, and socially engaged journalism in Myanmar.”

Ravish Kumar of India receives an award for “his unfaltering commitment to a professional, ethical journalism of the highest standards.”

Thailand’s Angkhana Neelapaijit also gets recognition for “her unwavering courage in seeking justice for her husband and many other victims of violence and conflict in southern Thailand.”

The Ramon Magsaysay Award, which was established in 1957, is known as Asia’s highest honor, celebrating the memory and leadership example of the third Philippine President after whom the award is named, according to the RMAF.

This award is given every year to individuals or organizations in Asia “who manifest the same selfless service and transformative influence that ruled the life of the late and beloved Filipino leader.”

PHL, Indonesia agree to delineate overlapping EEZ boundaries

August 2, 2019 | 6:18 pm

THE Philippine and Indonesian governments have agreed to implement the deal which delineates the boundary between the overlapping exclusive economic zones (EEZ) of the two countries.

The agreement, signed in May 2014, delimits the overlapping EEZs of both states. The Philippine Senate ratified the agreement on June 3.

On the sidelines of the 52^nd ASEAN Foreign Ministers Meeting in Bangkok, Thailand, Foreign Affairs Secretary Teodoro L. Locsin, Jr. and his Indonesian counterpart Retno Marsudi signed the Protocols of Exchange of the instruments of ratification.

“The Agreement is expected to benefit both countries, economically and politically, by promoting more bilateral cooperation in the EEZ in order to advance the common interest of managing and preserving the resources in the EEZ and further strengthening maritime security cooperation between the two countries,” said the Department of Foreign Affairs in a statement release late Thursday, Aug. 1.

The agreement was ratified by President Rodrigo R. Duterte on February 2017 and by the Indonesian Parliament on April of the same year.

The Philippine Senate concurred the President’s ratification in June this year.

“Wide overlaps in the EEZ of the Philippines and Indonesia, which run across the Mindanao Sea and Celebes Sea, and in the southern section of the Philippine Sea in the Pacific Ocean, required the two countries to negotiate and agree on a shared boundary,” the statement read.

As parties to the 1982 United Nations Convention on the Law of the Sea, Philippines and Indonesia are entitled to EEZs of 200 nautical miles. — Vince Angelo C. Ferreras

COA upholds previous decision vs GSIS for ‘unnecessary’ antibiotics purchase

August 2, 2019 | 6:18 pm

THE Commission on Audit (COA) has rebuked Government Service Insurance System (GSIS) officials for procuring “unnecessary and irregular” Oseltamivir capsules worth P25.13 million in 2006, saying that procurement of medicine is not in the GSIS’ purview.

Former GSIS chairperson Winston F. Garcia and several board members have been found liable for the irregularity.

The audit commission was reacting to a 2015 petition by several GSIS officials for review of a 2012 Notice of Disallowance.

“It must be emphasized that the fund of GSIS is a social insurance fund, which shall be used to finance the benefits administered by the GSIS. The procurement of medicines for the treatment of afflicted GSIS members is not a benefit that is being administered by GSIS,” stated the COA decision dated July 4.

The GSIS procured 476,300 capsules of the anti-viral medication, also known as Tamiflu, for the use of its members during the height of the Avian Influenza scare in the country.

According to the COA report, GSIS and United Laboratories, Inc. (UNILAB) entered into a memorandum of agreement to ensure that the former “will have ready access to the supply of Oseltamivir capsules in case of Avian Influenza outbreak in the country.”

However, the auditors reported in 2007 and in 2010 that the purchased capsules were only distributed to GSIS officers and employees on 2009, long after the Avian Flu scare in 2006, and only 109,880 or the 476,300 capsules procured were distributed.

In addition to that, the state auditors said that the GSIS cannot justify its procurement as there was no national emergency declared then.

“There was no national emergency declared by the President as to the outbreak of Avian Influenza in the country. Thus, there was no urgent necessity for the procurement of Oseltamivir capsules,” the decision read.

It added, “GSIS, being a social institution, does not have the required skills and expertise to determine the existence of Avian Influenza, and treatment of the patient afflicted with said flu can only be done in the hospital according to the World Health Organization.”

In the initial findings, then GSIS chairperson Winston F. Garcia and board members Bernardino R. Abes, Jesse H.T. Andres, Daniel C. Gutierrez, Esperanza S. Ocampo, Reynaldo P. Palmiery, Raymundo A. Lapating, and Jesus I. Santos were found liable for the unnecessary procurement.

In COA’s modified notice, Mr. Lapating and Ms. Ocampo were excluded from liability for having no participation in approving the deal.

The case will be referred to the Office of the Ombudsman for investigation and filing of appropriate charges if warranted. — Vince Angelo C. Ferreras

CHR points out inadequate supply of anti-HIV drugs

August 2, 2019 | 6:18 pm

THE Commission on Human Rights(CHR) on Friday called out the government for the reported inadequate supply of medications for the treatment of people living with human immunodeficiency virus (PLHIV).

“[T]here are reports regarding inadequate supply of antiretroviral (ARV) drugs, which are crucial for the treatment of PLHIVs. To truly provide proper medication and treatment, it is exigent to guarantee the sufficient and steady supply of ARVs. With the increasing surge of patients, it is imperative for the DoH to accurately forecast the demand and immediately address the gaps in the supply chain,” CHR Spokesperson Jacqueline Ann C. De Guia said in a statement on Friday.

ARV drugs can delay or halt the onset of AIDS (Acquired Immune Deficiency Syndrome) after a person is infected with HIV.

She said proactive measures to educate the public on the transmission of the virus and how to avoid the infection at the onset are also “equally important.”

Ms. De Guia also welcomed the signing of the Implementing Rules and Regulations (IRR) of Republic Act No. 11166 or the Philippine HIV and AIDS Policy Act.

“With the IRR, we can now look forward to the expedient and proper execution of the said law, which is a concrete step in the efforts to curb the growing Human Immunodeficiency Virus (HIV) epidemic in the country,” she said.

The CHR is hopeful that the signing of the IRR will pave the way for the elimination of discrimination towards PLHIV.

“Through a human rights approach, we can better safeguard the dignity of PLHIV while helping ensure that fewer people will get infected,” Ms. De Guia noted.

A 2017 report by the Joint United Nations Program on HIV/AIDS noted that the Philippines has the fastest growing HIV epidemic in the Asia and Pacific region.

Approximately 93,400 Filipinos will be living with HIV by the end of the year, according to the Department of Health.

“Hence, the efficient and urgent roll-out of these policies cannot be overemphasized,” Ms. De Guia said.

“[T]he new law ensures application of human rights principles to address stigma and discrimination. Given that about 30% of new cases affect the youth, it also enables minors 15 years of age to get tested even without [parental] consent. The law also ascertains that ‘no HIV/AIDS patient shall be denied or deprived of public health insurance and private life insurance coverage on the basis of a person’s HIV status.‘ In addition, the Insurance Commission made sure that there will be medical coverage [given] to people living with HIV by health maintenance organizations under their recently released Circular Letter No. 2019-30,” she explained. — Arjay L. Balinbin

BIR’s first semester collections fall short of goal

August 2, 2019 | 6:16 pm

THE Department of Finance (DoF) said the Bureau of Internal Revenue (BIR) fell “a little short” of its target revenue collection for the first half amid slow economic growth.

The BIR collected P1.07 trillion in taxes from January to June, which is 95% of the target for the period, Finance Secretary Carlos G. Dominguez III said on Thursday.

“You have to remember, the growth in the economy was a little short of our target. So normally, because it’s short, the BIR collections are also expected to be short. But given the conditions, they actually did quite well,” Mr. Dominguez said on the sidelines of the BIR’s 115^th anniversary celebration on Thursday.

The economy grew 5.6% in the first quarter, its worst performance in four years. The first-quarter outcome was lower than the 6.3% in the preceding quarter and 6.5% in the same period in 2018.

The government operated on a re-enacted 2018 budget from the start of the year until April 15, when President Rodrigo R. Duterte signed the latest general appropriations into law, but vetoed P95.3 billion in appropriations that he said were not in accordance with his administration’s priorities, slashing this year’s national budget to about P3.662 trillion.

The tax bureau, which makes up about three-fourths of total government revenues, set a P2.33-trillion collection goal for 2019.

In its medium-term program, the Development Budget Coordination Committee (DBCC) set a P2.576-trillion revenue target for the BIR next year.

Asked if he is confident about reaching the 2020 collection goal, BIR Commissioner Caesar R. Dulay told reporters in an ambush interview at the same event: “Of course, sasabayan lang namin ‘yung ekonomiya.” — BML

Sugar output inches lower as crop year nears end

August 2, 2019 | 6:16 pm

RAW SUGAR production dropped by 0.27% year-on-year as of the first week of July, the Sugar Regulatory Administration (SRA) reported, with the crop year nearing its end.

As of July 7, raw sugar output reached 2.072 million metric tons (MMT), down from the 2.078 MMT logged as of July 8 last year but higher than the 2.071-MMT target, a preliminary report from the SRA showed.

This is equivalent to 41.447 million 50-kilo bags, compared with 41.560 million bags a year earlier.

The crop year for sugar starts in September and ends in August.

Demand for raw sugar declined 18.11% to 1.777 MMT for the crop year thus far from 2.17 MMT in the same period last year.

Meanwhile, total sugarcane milled decreased 8.59% year-on-year to 21.745 MMT.

Likewise, refined sugar output also fell 11.8% year-on-year to 797,117.60 MT.

The prevailing retail price of raw sugar was at P45 per kilo, down from P55 per kilo last year. For refined sugar, the retail price was at P50 a kilo, also lower than last year’s P64 per kilo. — VMPG

Globe posts flat earnings in Q2

August 2, 2019 | 6:16 pm

By Denise A. Valdez, Reporter

GLOBE Telecom, Inc. reported flat earnings in the second quarter as ramped-up infrastructure spending dampened the growth in revenues.

The Ayala-led telecommunications giant posted an attributable net income of P5.32 billion in the April to June period, 0.5% higher from the P5.29 billion it recorded in the same period last year.

Year-to-date, Globe’s attributable net income was 20.8% higher at P12.05 billion on the back of the company’s strong performance in the first quarter.

Cnsolidated service revenues of Globe stood at P36.9 billion in the April to June period, 12% up from a year ago due to the continuous growth of its mobile, broadband and corporate data businesses.

Revenues from its mobile segment grew 4% year-on-year in the second quarter to P27.65 billion, which Globe attributed to the performance of its prepaid brands.

Globe’s total mobile subscribers stood at 92.94 million as of end June. Of this, Globe Prepaid and TM subscribers accounted for 90.31 million, while Globe Postpaid added 2.63 million.

Revenues from home broadband also rose 20.8% to P5.35 billion in the second quarter, on the back of a 21% growth in its subscriber base to 1.8 million as of end June.

Corporate data revenues likewise rose 12% to P3.19 billion, driven by the “increase in circuit count, high usage on both internet and domestic services, and the strong take-up of various data connectivity solutions, as well as managed and cloud-based services.”

Fixed line voice revenues of the company however fell 8% to P684 million.

Year-to-date, the total revenues of Globe ended at P81.52 billion, up 9.5% from in the same period last year. This was driven largely by the 45% increase in mobile data revenues to P34.04 billion, which offset the 17% decline in mobile voice to P12.32 billion and 24% drop in mobile SMS to P8.28 billion.

But expenses also increased 6% to P63.2 billion as the company boosted spending on its network infrastructure to support the growing number of its subscriber base.

Globe said capital spending hit P19 billion in the first half of the year, 75% of which went to data-related requirements.

“We are pleased with the Company’s robust performance and that we are on track with our strategic objectives for this year,” Ernest L. Cu, president and chief executive officer of Globe, said in a statement.

“We will continue to invest in our 4G (fourth generation) and LTE (long-term evolution) network to enhance the customer experience and reinforce our competitive advantage moving forward,” he added.

Robinsons Retail earnings fall 33% in 2nd quarter

August 2, 2019 | 6:15 pm

By Denise A. Valdez, Reporter

EARNINGS of Robinsons Retail Holdings, Inc. (RRHI) dropped in the second quarter despite higher sales due to the impact of a new accounting standard.

The Gokongwei-led retail firm said in a disclosure to the stock exchange Friday its net income attributable to equity holders of the parent stood at P946 million for the April to June period, falling 32.9% from P1.41 billion in the same period last year.

Year-to-date, the attributable net income also slid 32.4% to P1.773 billion from P2.622 in the same period last year.

“In (the second quarter), the company reflected the year-to-date impact of adopting the new accounting standard on leases (PFRS 16) effective January 1, 2019. A right-of-use asset is recognized and amortized over the lease term while interest expense is incurred on the lease liability,” RRHI said.

“The shift to PFRS 16 reduced our net income attributable to parent company to P1.8 billion in the first half of 2019, lower by P481 million or 21.3% versus pre-PFRS 16,” it added.

Interest expenses in the six-month period soared to P1.2 billion from P55 million in the same period last year due to non-cash interest expenses on lease liability.

But RRHI noted the adjustments from adopting the new accounting standard are non-cash and have no effect on the company’s cashflow.

RRHI’S core net income — which excludes interest from bonds, equitized net earnings from the 40% stake in Robinsons Bank, unrealized forex gains/losses and non-recurring expenses-declined 30.3% to P927 million in the three-month period.

Excluding the impact of adopting the new accounting standard, RRHI’s core net income went down 2.2% to P2.2 billion.

The company, which operates Robinsons Department Store and Ministop, recorded a 26.5% jump in net sales to P39.861 billion during the second quarter, bringing first half net sales by 27.7% to P77.211 billion.

RRHI attributed the rise in revenues for the six-month period to a 3.9% same-store sales growth (SSSG), on top of additional sales coming from newly-opened stores and the consolidation of Rustan Supercenters, Inc., which was acquired in November.

SSSG is the growth measure of the company’s existing stores, which investors look at to trust that the growth of RRHI is not driven only by opening new stores.

The company said its supermarket business has now become its biggest growth driver, as this segment now accounts for 54% of total revenues from 46% in the same period last year.

RRHI added the performance of its SSSG in the six-month period is largely due to the 11.2% SSSG from its drugstore segment, followed by 4.3% from supermarkets, 3.6% from do-it-yourself (DIY) stores, 3.6% from specialty stores and 2.3% from conveniences stores.

The whole group’s SSSG was at 3.7% in the second quarter. It is targeting a 2-4% SSSG by the end of 2019.

RRHI noted Rustan Supercenters was able to swing to positive operating income in the second quarter (pre-PFRS 16) from losses that dragged the company’s earnings in the first quarter.

It attributed the improvement to “gains in gross profit brought about by the alignment of trading terms, reduction in operating and corporate expenses and alignment in the depreciation policy.”

RRHI owned a total of 1,920 stores at the end of June, spread among 255 supermarkets, 49 department stores, 211 DIY stores, 518 convenience stores, 510 drugstores and 377 specialty stores. This does not include franchised stores of The Generics Pharmacy.

Among the company’s brands include Robinson’s Supermarket, Robinson’s Department Store, Handyman Do It Best, True Value, Toys R Us, Ministop, Daiso Japan, Costa Coffee, Savers Appliances and South Star Drug.

RRHI has so far spent P1.5 billion from its capital expenditure allocation of P3.5-5 billion for the full year.

Roxas Holdings widens net loss in Q3

August 2, 2019 | 6:15 pm

ROXAS Holdings, Inc. (RHI) widened its net loss by 271% in the third quarter ending June, as unfavorable weather conditions depleted the supply of cane, affecting the sugar industry as a whole.

In a disclosure, the listed sugar and ethanol manufacturer reported a P287.58-million attributable net loss during April to June period, versus a net loss of P77.364 million recorded in the same period last year.

RHI swung to a P650.009 million net loss for the nine-month period, from a P2.114 million net income in the same period in 2018. The company’s fiscal year ends on Sept. 30.

Revenues during the third quarter were also 12% down to P1.506 billion.

“The sugar industry is currently faced with lower output and increasing production costs while sugar prices have remained low,” Pedro E. Roxas, chairman of RHI, said in a statement.

He noted that changing weather conditions have led to lower supply of cane for production, which triggered competition that led to higher cane prices. The threat of sugar importation has also put pressure on local sugar prices.

RHI President and Chief Executive Officer Hubert D. Tubio said these challenges also resulted in a shortage of bagasse, a dry pulpy residue collected after the sugar cane extraction. This is used as fuel for machines like electricity generators.

“RHI produced a significantly lower volume of refined sugar from 2.2 million LKg bags last crop year to 1.1 million LKg bags this crop year,” he said, adding that the company has already implemented actions to prevent the same problem to happen in the next crop year. One Lkg is equal to one 50-kilogram bag of sugar.

Mr. Tubio also noted that the company’s ethanol unit booked lower margins due to high feedstock costs at P12,500 per metric ton, as production increased during the period.

RHI Vice President and Chief Finance Officer Celso T. Dimarucut said the company is “now focused on reducing inventories, and collecting receivables to generate funds for capital expenditures and payment of maturing obligations.”

RHI, which is described as the largest integrated sugar business in the country, manages sugar miller Central Azucarera de la Carlota, Inc., ethanol producers Roxol Bioenergy Corp. and San Carlos Bioenergy; and RHI Agri-business Development Corp.

Shares in RHI went up 4.55% or 0.1 centavos to close at P2.30 apiece in the stock exchange on Friday. — Vincent Mariel P. Galang