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SMC taps 3 foreign firms to design new airport

SAN MIGUEL Corp. (SMC) has tapped three foreign companies for the design and construction of its proposed P734-billion international airport in Bulakan, Bulacan.

The company said in a statement Tuesday it is working with Groupe ADP (Aeroports de Paris), Meinhardt Group and Jacobs Engineering Group for the Bulacan airport project.

These firms are known to have worked on Changi Airport in Singapore, Charles de Gaulle Airport in France and Hartsfield-Jackson Atlanta International Airport in Georgia, United States.

“This is our biggest investment in a single project to date, one that will definitely impact the lives of millions of Filipinos and the country in general — all the more reason for us to push for greater sustainability and choose the best people to work with us,” SMC President and Chief Operating Officer Ramon S. Ang said in the statement. SMC said it is also looking for a “world-class airport operator” to handle the operations and management of the proposed gateway.

San Miguel Holdings Corp.’s (SMHC) proposed New Manila International Airport, located in Bulacan, is eyed to become an alternative to the Ninoy Aquino International Airport. The SMC unit is proposing to build a 2,500-hectare airport with four to six parallel runways that will have an annual capacity of 100 million passengers.

SMHC is expected to receive from the government the Notice of Award for the project within the week, after which it must comply with documentary requirements within 20 days.

The transportation department earlier said it targets the formal award of the project to SMHC by early September, and for the construction of the airport to begin by the fourth quarter of the year.

On concerns about the livelihood of the fisherfolk to be affected by the airport’s location, Mr. Ang said SMC will make sure the community will be relocated to better homes.

“We are in the process of identifying areas where together we can build a fishing community that will last for generations to come,” he was quoted as saying.

“With a major international airport at their doorstep, fisherfolk, microentrepreneurs, and local businesses will have a huge, ready market for their products, and even a means to ship them to other provinces or export them,” Mr. Ang added. — Denise A. Valdez

Travellers International Q2 income declines

THE owner and operator of Resorts World Manila (RWM) posted a 52% drop in attributable profit for the second quarter of 2019, weighed down by higher borrowing costs.

In a regulatory filing, Travellers International Hotel Group, Inc. (TIHGI) booked P600.27 million from April to June, less than half the P1.24 billion in the same period a year ago. This came amid a 45% increase in gross revenues to P8.08 billion.

The listed firm traced the decline to higher finance charges and depreciation expenses.

For the first semester, attributable net income was halved to P844.71 million, even as gross revenues surged 50% to P16.57 billion.

The company noted that higher revenues were due to the increase in gaming capacity at the RWM complex. It now has a total of 2,203 gaming units from a combination of VIP tables, mass tables, slots, and electronic table games, compared to 1,932 in end-2018.

With this, gross gaming revenues for the first half jumped 50% to P13.54 billion.

Meanwhile, non-gaming revenue rose 52% to P2.31 billion following higher occupancy rates and more hotel rooms launched in the area. The company started operations of Hilton Manila late last year and Sheraton Manila in the first quarter, adding 747 new hotel rooms for a total of 2,201 by end-June.

Average occupancy rate in RWM’s five hotels stood at 78%.

TIHGI will continue to expand RWM with the completion of its Grand Wing facility by the end of 2019, which will add two levels of gaming, entertainment, and retail spaces. It will also open Hotel Okura Manila by the first quarter of 2020.

Shares in RWM slipped 0.37% or two centavos to close at P5.43 each on Tuesday. — Arra B. Francia

Cosco Capital’s earnings get a boost from Liquigaz sale

COSCO Capital, Inc. registered a 273% increase in attributable profit for the first half of 2019, boosted by sale of its liquefied petroleum gas (LPG) business.

In a statement issued Tuesday, the listed holding firm of tycoon Lucio L. Co said net income attributable to the parent rose to P9.88 billion in the January to June period. This includes a one-time gain from its divestment in Liquigaz Philippines Corp.

Cosco signed in October last year a share purchase agreement for the sale of all its shares in Liquigaz to Fernwood Holdings, Inc., in a bid to increase financial flexibility.

Excluding the sale of Liquigaz, core attributable net income increased by 8.6% to P2.67 billion. Revenues were flat at P76.72 billion.

The company did not provide second- quarter figures.

The grocery retailing business through Puregold Price Club, Inc. and S&R Membership Shopping Club, accounted for 54% of profit, followed by the commercial real estate segment, liquor distribution unit, and specialty retailing segment at 23%, 17%, and 2%, respectively.

Consolidated income from the grocery retail segment slipped 4.8% to P2.82 billion, even as consolidated revenues increased 11.3% to P71.1 billion. Without the one-time gain from the sale of its equity investment in Lawson convenience stores, core net income rose 8.4%.

Puregold booked same-store sales growth (SSSG) of 6.2% for the first half, while S&R’s stood at 9.3%.

“Our SSSG in the first half of 2019 is driven by higher consumer spending fueled both by minimum wage inflation in 2018 and easing inflation in 2019,” Puregold said in a separate statement.

The company opened 12 new stores during the semester, as well as one S&R Warehouse Club, bringing its total network to 419 stores.

Net income from the liquor distribution business grew 20.8% to P457 million. Revenues added 21% to P4.5 billion, following a 31% uptick in volume of cases sold mostly from its Alfonso Light Brandy and Alfonso Brandy brands.

Earnings from the commercial real estate segment rose by 11.4% to P637 million on the back of a 4.6% increase in revenues to P2.7 billion.

Office Warehouse, Inc., which makes up the specialty retailing business, delivered a 67% net income increase to P54 million. Revenues also climbed 20.9% to P1.22 billion, driven by SSSG of over 15% from its network of 91 stores.

Shares in Cosco fell 1.62% or 11 centavos to close at P6.66 apiece at the stock exchange on Tuesday, while shares in Puregold shed 0.56% or 25 centavos to P44.50 each. — Arra B. Francia

Gov’t fully awards offer of 10-year bonds

THE GOVERNMENT fully awarded the reissued 10-year Treasury bonds (T-bond) it offered on Tuesday, with rates dropping following signals from the central bank chief on another policy rate cut and further reductions to lenders’ reserve requirement ratios (RRR).

The Bureau of the Treasury (BTr) raised P20 billion worth of T-bonds yesterday with the offer more than three times oversubscribed, as tenders amounted to P65.2 billion.

The 10-year T-bonds, which carry a coupon rate of 6.875% and have a remaining life of nine years and five months, fetched an average yield of 4.196%, 144.8 basis points lower than the 5.644% quoted when the papers were last offered on May 28.

At the secondary market yesterday, the debt notes were quoted at 4.303%, based on the PHP Bloomberg Valuation Service Reference Rates.

Following the auction, National Treasurer Rosalia V. De Leon said yields were lower as expected following the central bank’s rate cut last week and dovish statements from Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno.

“We expect that rates would be coming down given the pronouncements by the Governor and of course…the Monetary Board (MB) last Thursday reduced policy rates by 25 basis points. Coming from the Governor, they’re looking at possible RRR cut in September or within the fourth quarter,” Ms. De Leon told reporters.

At its fifth review for the year on Thursday, the central bank’s policy-setting MB cut benchmark rates by 25 basis points, bringing the overnight reverse repurchase rate to 4.25%, and the overnight deposit and lending rates to 3.75% and 4.75%, respectively.

This followed a “prudent pause” in June as well as a 25-bp cut last May that partially dialed back a cumulative 175-bp hike implemented through five meetings last year in order to arrest rising inflation that peaked at a nine-year-high 6.7% in September and October.

In a Bloomberg interview last Friday, Mr. Diokno said policy makers may slash key rates further in their next meeting in September or in the first few weeks of the fourth quarter.

In a separate interview with ABS-CBN News Channel, Mr. Diokno said banks’ RRR may be reduced by another 100 basis points before the Sept. 26 policy meeting.

Mr. Diokno said the already reduced RRR, which is currently at 16% for big banks after the phased 200-bp cut, “is still very high.”

Yesterday, the BSP chief said the policy-setting Monetary Board is looking to announce planned phased RRR cuts ahead of time on a quarterly basis to reduce market speculation.

Sought for comment, a trader also attributed yesterday’s auction results to “the possibility of more cuts on both policy rate and RRR.”

“Eventually, they’ll look again at rate cuts so they’re taking the opportunity right now to also lock in hopefully for the 10 years,” the trader said.

The trader added that demand was strong amid the escalation of the trade dispute between the US and China.

Last week, the People’s Bank of China devalued its own currency to 7 against the dollar in retaliation against Washington’s plan to impose an additional 10% tariff on $300 billion worth of Chinese goods starting Sept. 1.

Tensions between the two countries escalated further after the US called China a “currency manipulator.”

The government plans to borrow P230 billion from the domestic market this quarter through Treasury bills and T-bonds.

It is looking to raise P1.189 trillion this year from local and foreign sources to fund its budget deficit, which is expected to widen to as much as 3.2% of gross domestic product. — Beatrice M. Laforga

Affordable housing business lifts Century Properties’ bottom line

CENTURY Properties Group, Inc. (CPG) saw its attributable profit surge by 108% in the second quarter of 2019, driven by higher contribution from its affordable housing segment.

The Antonio-led property developer told the stock exchange its net income attributable to the parent hit P336.75 million in the three months ending June, following a 59% increase in revenues to P2.67 billion.

This brought net income attributable to the parent to P704.56 million during the January to June period, 63% higher year on year. Six-month revenues were also up 24% to P5.45 billion.

“We expect this positive momentum to continue as revenues from our expansion plans have started contributing significantly and steadily to CPG’s bottom line even as our existing in-city projects still significantly provide a stable revenue stream,” CPG Chief Finance Officer Ponciano S. Carreon, Jr. said in a statement.

Mr. Carreon said the affordable housing business now generates 12% of CPG’s total revenues. This is expected to increase further as they complete more projects within the year.

CPG has partnered with Japan’s Mitsubishi Corp. for PHirst Park Homes, Inc., a company focused on providing affordable housing in the provinces. It plans to roll out 15 masterplanned communities worth P57 billion in the next five years.

Meanwhile, the company booked revenues from three condominium projects worth P7 billion completed in 2018. This includes Boracay Tower in Azure Urban Resort Residences in Parañaque, Osmeña East Tower at The Residences in Quezon City, and Iguazu Tower at Acqua Private Residences in Mandaluyong. It will complete two more buildings in the fourth quarter.

For the office segment, CPG is set to complete the Century Diamond Office Tower in Makati covering 63,110 square meters (sq.m.) in gross floor area (GFA). This is part of the company’s goal to reach 300,000 sq.m in GFA with projected revenues of P2 billion by 2020.

“We expect that the encouraging performance of our core businesses coupled with cost reduction measures and improvement in our operating efficiencies will help sustain our double-digit NIAT (net income after tax) growth for the next three to four years,” Mr. Carreon said.

Shares in CPG dropped a centavo or 1.82% to close at 54 centavos each at the stock exchange on Tuesday. — Arra B. Francia

BSP sees no immediate hike in ATM fees as moratorium ends

THE BANGKO SENTRAL ng Pilipinas said any hike in automated teller machine fees will need its approval.

By Mark T. Amoguis, Senior Researcher

THE CENTRAL BANK chief quelled market speculations of an impending hike in fees for transactions conducted through banks’ automated teller machines (ATMs).

“The moratorium on [ATM] fee (adjustments) just finished. Pero hindi naman automatic na mag-a-adjust (But it does not mean the banks will adjust fees automatically),” Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno said on the sidelines of an event in Quezon City on Tuesday.

Asked if there are banks applying for ATM fee hike at the moment, Mr. Diokno said: “Nothing yet. Wala pang nangyayari (Nothing’s happening).”

Wala kaming active move to stop or authorize another arrangement. Basta natapos na lang ‘yung period (We don’t not have active move to stop or authorize another arrangement. The period for this moratorium just ended),” Mr. Diokno added.

This comes amid a planned probe of the House committee on banks and financial intermediaries of the impending hike in fees for transactions coursed through the ATMs.

According to Makati City Rep. Luis N. Campos, Jr., who filed the House Resolution No. 210 prompting the inquiry, banks plan to increase such fees by as much as 50%.

Currently, interbank charges on ATM withdrawals range from P10 to P15.

BSP Deputy Governor Chuchi G. Fonancier said the central bank sees to it that banks have in place a policy that adheres to the principles of “reasonable and market-based pricing.”

“Banks cannot just increase the ATM fees as they would want to. There’s a process they need to observe in setting the ATM fees,” Ms. Fonacier said in a text message on Tuesday.

“The BSP also recognizes the need to make ATM operations economically viable to allow the banking public wide access to ATM for their transactional needs. Our expectation is that any increase in ATM fees should be within reasonable space of present customer experience,” she said.

“Rest assured that the BSP’s supervisory action on the matter is guided by best practices and driven by the need to look after the broader welfare of consumers.”

The central bank’s Memorandum No. M-2019-020, signed by Ms. Fonacier last July 19, lifted the moratorium on hiking ATM fees implemented in September 2013.

BDO Unibank, Inc. President and Chief Executive Officer Nestor V. Tan said: “We are in discussions if can revisit the way ATM fees are charged because the current setup is that its acquirer-based, meaning the operator of the ATM will have to charge for usage of the ATM.”

“I don’t know what it is now but there will be some adjustments… I don’t think it’s going to be immediate,” Mr. Tan said on the sidelines of an event in Quezon City on Tuesday.

“The industry and the BSP are working on ways to try to see if we can have a process so that the consumer is not burdened of this price,” he added.

In a separate statement sent to reporters on Tuesday, the central bank assured the public that the policy on ATM fees is guided by “best industry practices” with the broader welfare in mind.

“[B]anks cannot increase the ATM fee on their own. In fact, any bank that intends to adjust ATM fees must file its request with the BSP, indicating their proposed fees, as well as the costs currently incurred by the bank with respect to its ATM activities,” the BSP said.

The BSP said the declared costs should be clear, properly supported, and may be validated by the central bank when deemed necessary. It also disallows the imposition of set fees arising from agreements between market participants.

“Rest assured that the BSP shall examine each request and decide if the increase is warranted to cover the cost of maintaining the ATMs,” the central bank said.

“In any case, said fees should be lower than the fees collected from transactions made over-the-counter and comply with transparency in pricing.”

Philippine airlines report mixed Q2 results

LISTED Philippine airlines posted mixed earnings in the second quarter, as Cebu Air, Inc. doubled its earnings while PAL Holdings, Inc. slumped to a bigger loss.

The listed operator of Cebu Pacific booked a net income of P3.76 billion in April to June, up 101% from a year ago as consolidated revenues rose 20% to P23.53 billion.

Second-quarter passenger revenues stood at P17.67 billion, 21% higher year on year, while ancillary revenues were up 25% to P4.46 billion. Cargo revenues were flat at P1.39 billion.

For the first half, Cebu Air posted a net income of P7.14 billion, 116% higher from in the same period last year. Total revenues reached P44.7 billion, or an increase of 18% year on year.

Thanks to an 8.8% hike in average fares to P2,974, Cebu Air’s passenger revenues rose 17.8% to P33.35 billion during the six-month period. The volume of passengers also expanded 8.3% to 11.21 million due to the deployment of new aircraft that have bigger capacity.

Ancillary revenues widened 23.8% to P8.52 billion in the first half, while cargo revenues grew 6.9% to P2.84 billion. Both increases were attributed to the bigger volume of passengers and cargo transported during the period.

Expenses climbed 8.2% to P35.77 billion in the first semester, and 8.4% to P18.5 billion in the quarter ending June. Cebu Air attributed the higher costs to its expanded operations, acquisition of new aircraft and weakening of the Philippine peso in the past six months.

Meanwhile, the operator of Philippine Airlines (PAL) saw its net loss attributable to equity holders of the parent widen to P2.5 billion in the second quarter, from a loss of P290 million a year ago.

Second-quarter revenues grew 9.8% to P41.97 billion in the three-month period, but was outpaced by the 6.2% surge in expenses to P40.93 billion.

To date, the PAL’s attributable net loss stood at P3.33 billion, 138% bigger from last year.

Consolidated revenues rose 8.6% to P81.25 billion during the period, mainly due to additional flight frequencies. Passenger revenues increased by 9% to P71.13 billion, while ancillary revenues jumped 21% to P5.54 billion. However, cargo revenues fell 6% to P4.5 billion.

Expenses were 3.3% higher in the first semester at P77.75 billion, mostly due to the increase in depreciation from implementing a new accounting standard.

Maintenance costs climbed 7.8% to P10.32 billion because of the new planes PAL received during the period. Expenses related to reservation and sales went up by 14.1% to P5.98 billion due to the growth in passenger volume.

Financing charges also weighed on the company’s bottom line, as it grew 169% to P6.16 billion in the six-month period due to lease payments and the implementation of a new accounting standard. — Denise A. Valdez

Security Bank looks to raise P5 billion through long-term deposit certificates

SECURITY BANK Corp. is looking to raise P5 billion through the issuance of long-term negotiable certificates of deposit (LTNCD) to manage its liabilities and expand its funding base.

In a disclosure to the local bourse on Tuesday, the bank said the LTNCDs will have a term of five-and-a-half years with indicative pricing of 3.75%-4%.

The offer period started yesterday and will run until Sept. 4, although the lender can adjust this timeline as needed.

The LTNCDs’ coupon will be set before or at the end of the offer period. The interest will be paid quarterly in arrears.

Security Bank said the papers will be available for a minimum investment of P50,000 with increments of P10,000 thereafter.

The debt papers will be issued on Sept. 16.

Deutsche Bank AG-Manila Branch is the sole lead arranger for the issue, and will also act as a selling agent alongside Security Bank.

Like regular time deposits offered by banks, LTNCDs offer higher interest rates. However, LTNCDs cannot be pre-terminated but can be sold on the secondary market, making them “negotiable.”

This issue marks the first tranche of Security Bank’s P20-billion LTNCD program announced in June.

Security Bank in June raised P18 billion via the issuance of two-year bonds, well beyond the initial program of P5 billion as the offer was oversubscribed.

The fixed-rate two-year peso bonds were priced at the lower end of the range at 5.875% per annum.

Deutsche Bank served as the sole arranger and bookrunner of the transaction in cooperation with Security Bank.

Security Bank posted a higher net income in the second quarter following the expansion of its core businesses.

The bank booked a P2.57-billion net profit last quarter, up 31.79% from the P1.95 billion posted in the same period last year. This brought its first-half net earnings to P4.95 billion, up 15.38% from last year’s P4.29 billion.

Overall, Security Bank’s total assets increased 8% to P776.78 billion at end-June from P766.86 billion as of December 2018, it reported last week.

Security Bank shares closed at P195 apiece on Tuesday, up P1.50 or 0.78% from the previous finish. — B.M. Laforga

Put another dime in that jukebox musical

THE HOPELESS romantic Tolits grips his cellphone tightly as he takes a video of Aileen singing the Filipino rock band Aegis hit, “Basang-Basa sa Ulan.” During the wet season, the rains pours down on Villa Venecia where the flood has not subsided for weeks — a recurring situation since 2014. Aileen hopes that the video, once uploaded online, would lead to her being discovered by American television host Ellen Degeneres and thus, become a tool for awareness about her community’s difficult situation. Unfortunately, Tolits accidentally drops the cellphone and it sinks into the flood. Despite Tolits’ explanation of how he can retrieve the cellphone and the precious footage, he looses pogi points as the woman he fancies is disheartened and leaves him in the rain.

GETTING THE BALL ROLLING
In 2012, PETA’s artistic director Maribel Legarda and musical director Myke Salomon were having a casual conversation about ongoing productions over a meal.

Talking to BusinessWorld on July 21 at PETA Theater Center, Ms. Legarda recalled that Mr. Salomon suggested producing a musical and calling it Rak of Aegis, since at that time Atlantis Theatrical Entertainment Group was staging Rock of Ages, a jukebox musical featuring classic 1980s rock songs.

Without hesitation, Ms. Legerda said, “Noong narinig ko ’yun (When I hear that idea), I said, ‘Tama, we’re [gonna] do it!’”

“It took us a few months to get an appointment with Aegis band manager Josie Galindo… When we went to see them, we talked to the Galindos [and] wala pang (in less than) 10 minutes, they said ‘Sure!’,” Ms. Legarda recalled, adding that the all-female band (best known for its dramatic belting style of songs) and the theater company shared the same advocacy of promoting original Pinoy content.

After getting the blessing from the band and its manager, the musical — written by Liza Magtoto — took a year and a half to write and produce.

Ms. Legarda noted that they aimed for the story to “not be a fishbowl.” “It should be love not only between two people but a larger kind of love,” she said.

During the auditions for Rak of Aegis, the actors were required to sing Aegis songs.

Actor Pepe Herrera noted that the male actors were tasked to sing “I Love You Nalang sa Tago” (Tolit’s solo), a song he admittedly was not familiar with until the auditions.

Mr. Herrera — who has played the role of Tolits multiple times since the original production seven seasons back — recalled that he and Jerald Napoles were originally called back for the role of Tatay Kiel, Aileen’s father.

“Teenager dapat ang balak [for the role of] Tolits and Aileen (Tolits and Aileen were supposed to be played by teenagers),” he said.

But when the actors Isay and Robert Seña were considered for the roles of Kapitana Mary Jane, the factory owner whose shoe factory is failing thanks to the flood, and Tatay Kiel, Aileen’s father who is on the brink of losing his job, Mr. Herrera and Mr. Napoles were both cast as Tolits.

In January 2014, Rak of Aegis premiered with Aicelle Santos and Joan Bugcat alternating as Aileen; lsay Alvarez-Seña as Kapitana Mary Jane; Robert Seña as Tatay Kiel; Kakai Bautista and Neomi Gonzales alternating as Mercy, Aileen’s mother; Pepe Herrera and Jerald Napoles alternating as Tolits.

Mr. Herrera admits that he struggled with nerves, a newbie in the business during the musical’s first run.

Grabe ’yung kaba ko nung first show. I still remember para akong binuhusan ng masarap na tubig nung kumagat yung first punchline tapos tumawa sila (I was so nervous on the first show. I still remember when I felt like I was splashed with refreshing water after the first punchline landed well and the audience laughed),” he said.

THE CHARACTER OF BAHA
The play has another character — the flood. And playing the role are the 33 drums of water used in each performance.

Set designer Mio Infante noted that dealing with water onstage is difficult and challenging. “[The set is] wet and something can go wrong. Actors have to be extra careful with water because accidents can happen,” he said, describing the Rak of Aegis set as dangerous.

“Although it brings a different thing for the spectator, because normally we don’t really see water [in a play]. For Rak, we wanted to be more experiential, that’s why we added water and it is actually the core of the whole thing,” Mr. Infante said.

Mr. Infante based the set design on images he found of flooded urban areas.

“In the Philippines, a lot of the urban areas are, aside from it being congested, it’s below sea level. So when the rains come, [floods are] inevitable,” he said, referring to how households in these areas regularly move furniture and appliances to the second floor until the waters subside. “Baha (floods) for them, is a way of life.”

According to Mr. Infante, the musical’s set depicts a flooded urban community relocated to the second floor. To ensure that the audience see the artificial rain well, small roofs were hung around the set for the rainwater to flow down from. The water is then collected in a large fiberglass pool that serves as the flood.

“The water is controlled within an area, but because it hits the actor, it will splash on (the audience),” Mr. Infante said, referring to it as an interactive experience. “It’s the novelty of it.”

Ms. Legarda explained that the water is collected from a pool beside theater; it is chlorinated prior to the show, and changed once a week.

THE MUSICAL’S RESILIENCE
The musical has struck a chord with audiences and as a result it is currently the longest-running original Pinoy musical and began its seventh run in July.

Ms. Legarda credits the “very Pinoy story” and people’s “love for Aegis music” for the success of the show.

“It has become a ritual to perform [Rak of Aegis] from July to September — during the rainy season,” Ms. Legarda said, adding that there audience members who have seen it multiple times and balikbayans inquire about the reruns.

“If you’ve seen it [before], it’s all right, I’m not asking you to come back. If they come back, I think, they always find something new or something to laugh about it, which makes up for the fact that they know what’s going to happen already,” she added.

For the seventh season, the musical welcomed new cast members: actor-comedian Randy Santiago plays Fernan, the shrewd businessman-villain; multi-award winning singer-songwriter Noel Cabangon as Kapitan Kiel; and award winning world music performer and actress Bayang Barrios alternates in the role of Mary Jane with movie actress and singer Jenine Desiderio.

They are joined by Wish 107.5 Wishcovery 2018 1st Runner Up Kimberly Baluzo (Aileen); Leah Patricio from The Voice of the Philippines Season 2 (Mercy); GMA artist and singer Derrick Monasterio (Tolits); Viva Artist and two-time PhilPop grand prize winner Yumi Lacsamana (ensemble); and up and coming theater artists Ashe Uy, Marynor Madamesila, Lemuel Silvestre, and Gerard Dy as members of the ensemble.

Throughout its multiple shows, Mr. Herrera said that the audience’s laughter is the most rewarding response.

“Making other people laugh and laughing myself, it energises me,” Mr. Herrera said about the opportunity to showcase his “jologs” (tacky) side.

“I am embracing it completely and everything that goes with it… It may seem mundane, but now I see the great importance of that to the people that we entertain,” he added.

The story’s take on resilience continues to resonate among Filipinos.

“This is one play where at the end of it, you feel good about it. [It’s] not because hindi namin dini-discuss ang problema ng Pilipinas through a community pero nagbigay ka ng hope and the possibility of coming together (It’s not because we do not discuss the problems of the Philippines through a community but we give hope and the possibility of coming together),” Ms. Legarda said, regarding what makes it stand out from other jukebox musicals.

At the 2015 Gawad Buhay Awards, the musical bagged 11 trophies including those for Outstanding Original Musical; Outstanding Ensemble Performance in a Musical; and Outstanding Female Lead Performance in a Musical by Kim Molina.

Since its premiere in 2014, Rak has been seen by about 150,000 people and counting. By the end of its seventh run, there will have been 447 shows.

PETA is now finalizing plans to stage it regionally.

According to Mr. Infante, the annual restaging has allowed the production team to make improvements on the set and strategize on the possibility of touring. “We’ve sort of changed the methodology of setting it up. Originally, it took a while to set it up. It makes it more efficient after you do it several times,” he said. “Since last year, the pool can be set up in less than eight hours.”

With optimism in her voice, Ms. Legarda said: “I think it’s time for it to go somewhere [else].”

Rak of Aegis runs until Sept. 29 at the PETA Theater Center in Quezon City. For tickets and schedules, contact TicketWorld (www.ticketworld.com.ph, 891-9999). — Michelle Anne P. Soliman

ICTSI earnings jump 14% during second quarter

INTERNATIONAL Container Terminal Services, Inc. (ICTSI) posted a 14% rise in earnings during the second quarter as it recorded a higher throughput across its ports.

The Razon-led port operator saw its attributable net income jump 14% to $56.07 million in the April to June period, supported by the 9% increase in its gross revenues from port operations to $368 million.

The 7% growth in its consolidated throughput to 2.56 million twenty-foot equivalent units (TEUs) during the three-month period propelled its earnings to outpace the 4.2% increase in expenses at $297.9 million.

In the six months ending June, ICTSI’s attributable net income stood at $128.5 million, 42% higher than the $90.2 million recorded a year ago.

Gross revenues rose 14% to $751.8 million, backed by the 7% increase in throughput during the semester to 5 million TEUs.

ICTSI traced the higher earnings to tariff adjustments for certain services in several terminals, new contracts with shipping lines and services, the ramping up of its operations in Australia and Mexico, and added revenues from its two new terminals in Papua New Guinea.

Total expenses went up 4% to $588.49 million during the six-month period. Consolidated cash operating expenses also grew 5% to $232.0 million.

ICTSI said the higher cash operating expense is a reflection of the bigger volume it handled, salary adjustments in some terminals, increased information technology-related and business development expenses and cost contribution of its new terminals.

“The group’s focus on generating high quality earnings from our ports, ramping up activities at our newer terminals and strong cost control has enabled us to continue to deliver on our strategic objectives,” ICTSI President and Chairman Enrique K. Razon, Jr. was quoted in a statement as saying.

“Our business remains relatively unscathed by current geopolitical headwinds, but we remain vigilant and continue to monitor the situation closely. ICTSI is a robust business, strongly placed for the second half and the Board remains confident of the future,” Mr. Razon added. — Denise A. Valdez

LT Group nets P9.2 billion in first 6 months of 2019

LT GROUP, Inc.’s (LTG) attributable profit rose by 3% in the first half of 2019, driven by higher earnings from its tobacco business.

In a statement issued Tuesday, the holding firm of tycoon Lucio C. Tan, Sr. said net income attributable to the parent reached P9.24 billion in the six months ending June, against P8.96 billion in the same period a year ago.

The tobacco business, which accounted for 63% of attributable profit, saw earnings rise by 20% to P5.87 billion. This came on the back of a 20% increase in its share in net earnings from PMFTC, Inc. to P5.65 billion. LTG holds a 49.6% stake in PMFTC.

“The improvement in earnings is largely attributed to the volume mix in favor of premium Marlboro, as well as the price increase of Fortune in December 2018,” the company said.

Philippine National Bank, which generated 24% of LTG’s attributable income, reported a 27% decline in earnings to P4.05 billion due to lack of gains from the sale of real and other properties. Core income surged 52% to P3.98 billion.

Tanduay Distillers, Inc. delivered a net income of P380 million, 13% lower year on year, as higher operating expenses offset the 2% increase in revenues for the period.

Property unit Eton Properties Philippines, Inc. benefited from higher sales of residential units and more retail spaces up for lease, leading to a 15% increase in revenues. Net income accordingly grew 75% to P371 million during the January to June period.

Eton Properties’ projects include Eton Square Ortigas in San Juan City which was completed in the first half. Eton Square Ortigas, which has 2,062 square meters in gross leasable area, is now fully leased out.

Meanwhile, Asia Brewery, Inc. increased its net income by 12% to P244 million following a 10% uptick in revenues. The company sold more energy drinks under the Cobra brand, bottled water under Absolute and Summit, and soy milk under Vitamilk for the period.

Shares in LTG climbed 1.41% or 20 centavos to close at P14.40 each at the stock exchange on Tuesday. — Arra B. Francia

BDO sees steady loan growth

BDO UNIBANK, Inc. expects its loan growth to be sustained.

BDO UNIBANK, Inc. expects its loan portfolio to continue to grow by single digits this year, its top official said on Tuesday.

In terms of total loan growth this year, “we were in the high single digits for the first half, so we think that that will continue,” BDO President and Chief Executive Officer Nestor V. Tan told reporters on the sidelines of an event in Quezon City on Tuesday.

BDO earlier reported that its total resources grew 7% annually to P3.065 trillion in the six months ended June.

Its net loans and receivables likewise increased 9% to P2.120 trillion in the same period on the back of a 7% increase in the bank’s customer loans.

The Sy-led bank’s net income in second quarter jumped by 43.4% P10.393 billion, bringing its first semester bottom line to P20.140 billion, an 53.6% increase year on year.

When asked if the bank will revise upward its P38.5-billion profit guidance for the year, Mr. Tan said: “Not yet. We’re not sure how the second half will be strong.”

Shares in BDO went down by 1.57% or P2.30 to end at P144.20 each on Tuesday. — Mark T. Amoguis