GT Capital Holdings, Inc. to conduct virtual stockholders’ meet on June 5
The 2020 Annual Stockholders’ Meeting of GT Capital Holdings, Inc. will be conducted virtually on June 5, 2020 at 2 p.m.
Metro Manila police chief faces charges for lockdown breach
PHILIPPINE police were readying charges against Metro Manila’s police chief for violating lockdown rules when he celebrated his birthday with friends amid a lockdown meant to contain a coronavirus pandemic, the presidential palace said on Thursday.
“The PNP is also getting clearance from the Office of the President regarding the filing of administrative charges in violation of quarantine rules against the alleged violators,” presidential spokesman Harry L. Roque said in a statement.
He was referring to National Capital Region police chief Debold M. Sinas and his well-wishers.
The clearance was needed because Mr. Sinas and the senior police officials at his birthday are presidential appointees, Mr. Roque said.
Mass gatherings are prohibited and physical distancing must be observed during the pandemic.
Police were finalizing the charges against Mr. Sinas, at least two one-star generals and members of the National Capital Region Police Office (NCRPO) command group in connection with the birthday bash, spokesman Brigadier General Bernard Banac said in a Viber message yesterday.
“The filing of charges will be done by the Internal Affairs Service (IAS), which is now finalizing its investigation,” he said.
The charges were likely to be filed at the Taguig Prosecutor’s Office on Friday, IAS Inspector General Alfegar Triambulo said by telephone.
Police would use photographs taken during the event as their main evidence, he said.
The pictures, which were uploaded on the NCRPO’s Facebook page but later taken down, had been authenticated by police officers who attended the event.
Mr. Roque said Executive Secretary Salvador C. Medialdea had separately ordered a probe by the Philippine National Police Internal Affairs Services.
Justice Secretary Menardo I. Guevarra earlier said the National Bureau of Investigation would probe the incident, adding that state agents must “enforce the laws fairly.”
Interior and Local Government Secretary Eduardo M. Año had called the event “uncalled for,” adding that government officials should observe “delicadeza.”
Mr. Año, who supervises the police, said he would leave it up to the Philippine National Police to investigate the event and find out if violations had been committed.
The PNP in a statement on Wednesday said police chief General Archie Francisco F. Gamboa had ordered the inspector general of the Internal Affairs Service to investigate alleged violations of quarantine protocols.
Mr. Sinas has issued an apology, saying it was a “traditional mañanita” conducted by some officers and the accommodation was done “with all cautiousness.” He said he never meant to disobey any quarantine protocols on the coronavirus. — GMC and Emmanuel Tupas, Philippine Star
Gov’t unveils COVID-19 recovery plan
THE economic team on Thursday revealed its proposed recovery plan to help the economy bounce back from the ongoing coronavirus crisis, which includes liquidity support for businesses through banks and a significant reduction in corporate income tax (CIT).
Finance Secretary Carlos G. Dominguez III said during the Sulong Pilipinas event on Thursday that the government will need an additional P130-P160 billion to finance the programs under the first part of the three-phased recovery plan dubbed as the “Bayanihan II.”
Mr. Dominguez said of the total funding, P50 billion will be used as additional capital for state-owned banks Land Bank of the Philippines (LANDBANK) and Development Bank of the Philippines (DBP) and another P20 billion for loans of the Philippine Guarantee Corp. (Philguarantee).
Mr. Dominguez said LANDBANK and DBP will act as a wholesale bank that will buy loans of microfinance institutions, cooperatives, rural and thrift banks to free up lending space so small firms will have access to credit.
“Part of the increase in capital to LANDBANK and DBP [is] that they form a joint venture that will be empowered to buy bonds, preferred shares or common shares in qualified companies that need…solvency support,” he added.
Without going into details, Mr. Dominguez said the remaining part of the proposed budget will be used to “hire people to do specific jobs,” such as contact tracing for which around 300,000-500,000 people can be hired.
“What we are proposing is a stimulus package with far larger effects that will increase our fiscal deficit by nine-tenths of one percent. I think it’s around P130 billion or P160 billion. If you put it in the right place, the actual value, the actual economic activity that that kind of investment can make is probably P800 billion or P1 trillion because of the multiplier effect that you can get by putting it as bank capital and as capital of Philguarantee,” he said.
According to a presentation made during the online forum, support to small and medium firms under Bayanihan II includes credit guarantees and the wage subsidy program, while large firms will receive “targeted equity support to match bank lending” with conditions that have yet to be announced.
In the same forum, Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua said the second part of the proposed three-phased recovery plan includes a drastic CIT rate cut to 25% from the current 30% starting July.
The proposal will be under CREATE bill or the Corporate Recovery and Tax Incentives for Enterprises Act, a revised version of the Corporate Income Tax and Incentives Rationalization Act (CITIRA) bill that is pending at the Senate.
Albay Rep. Jose Maria Clemente S. Salceda earlier said the proposal is to bring the CIT down to 25% this year from 30% currently, while the next administration will “have flexibility over the other 5%,” against the previous proposal under CITIRA of a yearly one percentage point reduction for 10 years.
Mr. Chua said the CREATE bill will also include an extension of the net operating loss carryover (NOLCO) to five years from three years, while losses for this year “can be credited to future tax payments.”
While there will be changes in the incentive scheme from those proposed under the CITIRA, he said a longer sunset period will be provided under the new proposal where existing incentives will not be changed in the next four to nine years.
To attract new investors, Mr. Dominguez said they are proposing a more flexible income tax system that will offer “tailor-fit” incentives.
He said they will prioritize companies in industries that hire a lot of workers, those that can help improve technology here and those with stable markets.
Meanwhile, Mr. Chua said the third phase of the recovery program will involve “reprioritization” of the 2021 and 2022 budget to include projects meant to improve the country’s health care system, agriculture sector and the entire food value chains, as well as infrastructure projects under the administration’s “Build, Build, Build” program.
“This will ensure that the recovery stage is adequately supported, should the Bayanihan II be insufficient, or if the recovery takes a longer time,” Mr. Chua’s presentation read.
MASSIVE LOSSES
Meanwhile, Mr. Chua said the results of the three surveys conducted by the government showed micro-, small- and medium-sized firms (MSMEs) suffered income losses worth P767 billion so far due to business disruptions during the enhanced community quarantine (ECQ) in Luzon, with their income declining by 87% in March versus what they earned in February.
Of the more than 44,000 respondents in the survey conducted in early April, 66% reported zero sales while 33% said they had lower sales.
This translated to estimated job losses of about 2.24 million workers, or a 10% decline in March from the month prior, while about 75% or 33,041 firms have temporarily closed.
In the agriculture sector, National Economic and Development Authority’s survey showed an estimated P108 million in lost revenues, as 65% of the 6,863 respondents said they were able to sell their products while 35% were not able to sell. — Beatrice M. Laforga
Incentives key to attracting investments from firms shifting work from China
By Jenina P. Ibañez
Reporter
THE Philippines must improve its incentives program and remove trade obstacles to remain competitive in attracting investments, as global companies begin shifting China-based operations to Southeast Asia, international business councils said.
US-ASEAN Business Council Senior Vice-President and Regional Managing Director Michael Michalak said in a television interview on Thursday that Vietnam has been opening up to more foreign investments, taking advantage of a global supply chain shift in the region.
He said that there is interest in the Philippines, but it faces stiff competition with neighboring countries.
“When you look around at some of the issues…with investment and with some of these incentive programs, you have to compare what the Philippines is doing with other countries around the region.”
The Philippine government has recently proposed changes to the Corporate Income Tax and Incentives Rationalization Act (CITIRA), including granting “tailor-fit” incentives unique to the needs of foreign businesses, as well as immediately cutting corporate income tax to 25% from 30%. Previous versions of the bill proposed gradually reducing the rate to 20% over a decade.
“There’s a lot of uncertainty as to what exactly those (incentives) programs will be and there’s a lot of discussion going on. Hopefully very soon, many of those discussions will be finished and I hope the Philippines will have a good story to tell,” Mr. Michalak said.
Vietnam is reopening its economy after being touted as a success story for its response to the coronavirus disease 2019 (COVID-19) pandemic, reporting fewer than 300 cases with no new cases in almost a week.
In contrast, the Philippines has reported nearly 12,000 cases of COVID-19 infection, with a current daily testing capacity of over 8,000. The country has relaxed some lockdown measures and reopened some business operations in lower risk areas, while Metro Manila, Cebu City, and Laguna remain under a modified enhanced community quarantine until the end of May.
EU-ASEAN Business Council Executive Director Chris Humphrey said in an e-mail that the pandemic-driven redistribution of supply chains for companies that had previously relied on one or two investment destinations will be an opportunity for the ASEAN region, including the Philippines.
“But without the removal of key obstacles in the regions, such as overly complex customs procedures and non-tariff barriers to trade, the region, and its member-states, will not be able to fully take advantage of the opportunity before them,” he said.
He said the young population in the Philippines could help attract new investments, but the country can play a role in removing said obstacles to take advantage of regional value chains.
Mr. Humphrey said that recent proposals to shift the country’s incentives system are “good immediate ideas” that could help companies decide on their investment destination.
“Investment funds are likely to be at a premium for business post-pandemic as companies everywhere seek to reduce costs and preserve cash. For countries to attract new investments, they will have to be offering a range of incentives in what will be a very competitive market place. These could take the form of tax incentives, access to land, easing of employment restrictions on foreign labour and management, help with permissions, licences and clearances etc.”
American Chamber of Commerce of the Philippines Senior Adviser John Forbes said in a mobile message that the Philippines has not been competitive with Vietnam in recent years, as the latter has attracted more final assembly manufacturing from major electronics brands.
“The Philippines has excellent potential if it can organize a marketing campaign. The first step is to determine strengths and weaknesses. Investors do careful research and are convinced by hard facts not BS. Fix the weaknesses, starting with CITIRA, and new investors will come,” Mr. Forbes said.
George N. Manzano, University of Asia and the Pacific economist and former tariff commissioner, said in a phone interview that the government must introduce certainty in terms of incentives, as investors will find it difficult to make cost-benefit analyses and decisions without this.
He said that tailor-fit incentives would work well to help the Philippines benchmark what it can offer compared to neighboring countries.
“The bargaining power now is with the investor. We need them more than they need us,” he added.
Mr. Manzano said Vietnam has an edge because its government acted immediately to contain the virus.
“But then Vietnam is also getting a lot of investments. I’m not sure about their carrying capacity,” he said, while also expressing concerns about Vietnam’s state transparency, noting that investors may have learned their lessons from China’s state-owned enterprises.
He does not believe that investors, now prioritizing sustainability over efficiency, would concentrate all their resources in one country.
Noting that the Philippines is likely to attract labor-intensive industries like electronics and machinery manufacturing, he said that countries like Vietnam may not immediately absorb all migrating companies.
US-ASEAN Business Council’s Mr. Michalak said companies are already looking at where they will move their operations, noting that “they’re not waiting forever.”
But Mr. Manzano said prudent investors could wait and see before making investment decisions as the pandemic may have a second outbreak or virus mutation.
He said that if the country handles the pandemic badly, it could create a worse situation.
“Test, isolate, and trace. Ramp it up,” Mr. Forbes said.
SEC extends deadline for annual, quarterly reports
THE Securities and Exchange Commission (SEC) is giving companies more time to submit their annual reports, quarterly reports and audited financial statements amid the coronavirus pandemic.
The SEC en banc has approved a 60-calendar-day extension of the deadline for the filing of annual reports and audited financial statements for publicly listed companies and issuers of registered securities with fiscal years ending Jan. 31, 2020 to April 30, 2020.
In Memorandum Circular No. 17, the SEC acknowledged the business disruptions caused by the ongoing coronavirus disease 2019 (COVID-19) pandemic.
“The Commission recognizes the degree of difficulty in the preparation of the financial statements and in the completion of statutory audits brought about by the challenges in the application of certain accounting standards and in the execution of statutory audits of the affected companies within the first and second quarters of the year,” the regulator said.
Companies, whose fiscal year-end is on Jan. 31, will now have to submit annual reports and audited financial statements by July 14 from the original May 15 deadline. Firms whose fiscal year ends on Feb. 29 will now submit the reports on Aug. 12, while those with fiscal years ending March 31 and April 30 will submit on Sept. 12 and 27, respectively.
Other companies under SEC supervision will also get a 60-day extension for the submission of annual reports. Those with fiscal year ending Jan. 31 will have a new July 29 deadline, while those with fiscal years ending Feb. 29, March 31 and April 30 will have new deadlines of Aug. 27, Sept. 27 and Oct. 12, respectively.
The SEC is also extending the deadline for the submission of quarterly reports for the first quarter of 2020 by 45 calendar days from the regular filing deadline.
For example, a company whose first quarter covers the February to April period may submit its quarterly report until July 29, 45 days from the original June 14 deadline.
These deadline extensions will automatically apply to all covered companies, including publicly listed companies and other issuers of registered securities.
However, the SEC said publicly listed companies and other issuers of registered securities that are supervised by the SEC Markets and Securities Regulation Department will have to file the special disclosure form, SEC Form 17-LC, at least five calendar days before the regular filing deadline.
The SEC said it will “continue to assess the development or impact of COVID-19 in the preparation of financial statements and in the completion of statutory audits of companies and may issue appropriate rules and regulations to address the concerns that may further arise.”
Earlier, the SEC has extended the deadline for submission of 2019 annual reports and sustainability reports of publicly listed companies until June 30. Deadline for submitting Integrated Annual Corporate Governance Reports (I-ACGR) was also extended to July 30. — D.A.Valdez
Pandemic may push 130M people to extreme poverty
THE coronavirus disease 2019 (COVID-19) pandemic is projected to remove four years of growth from the global economy — or almost $8.5 trillion in total output — according to a new United Nations (UN) study.
A 3.2% reduction in global GDP is forecast this year, according to the United Nations World Economic Situation and Prospects report released on Wednesday. The projections follow the IMF World Economic Outlook report in April, which anticipated a 3% decline this year.
On Tuesday, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said that the economic forecasts may be further downgraded next month based on weak data since the mid-April IMF report.
“The pandemic will likely cause an estimated 34.3 million people to fall below the extreme poverty line in 2020, with 56% of this increase occurring in African countries,” according to the UN report. “An additional 130 million people may join the ranks of people living in extreme poverty by 2030, dealing a huge blow to global efforts for eradicating extreme poverty and hunger.”
The pandemic may accelerate digitalization and automation, which could eliminate many existing jobs, the study said. The net wage and employment effects could be negative, further aggravating income inequality.
“The lesson we learnt from the last crisis is that fiscal and monetary stimulus measures do not necessarily boost productive investments,” said Hamid Rashid, lead author of the report. He said governments must protect jobs and prevent a further rise in income inequality because the pandemic will disproportionately hurt those holding low-skilled, low-wage jobs, while leaving higher-skilled jobs less affected.
Global growth is expected to rebound by 3.4% in 2021, according to the UN study. — Bloomberg
JG Summit cuts year’s budget by 30%
By Denise A. Valdez, Reporter
JG SUMMIT Holdings, Inc. is cutting its 2020 capital expenditure (capex) budget to P58 billion as its earnings plunged 71% to P1.9 billion in the first quarter.
The Gokongwei-led holding firm announced in its annual stockholders’ meeting on Thursday that its revised 2020 capex is 30% lower than its initial allocation of P82 billion, and 20% lower than the P72.1 billion it spent in 2019.
“Given the need to manage capex, cash flow and our liquidity, given the COVID-19 (coronavirus disease 2019) situation, we have identified projects and pre-delivery payments that can be deferred. This has resulted in a revised capex budget of P58 billion in 2020,” JG Summit President and Chief Executive Officer Lance Y. Gokongwei said.
He noted the bulk of the reduction came from airline arm Cebu Air, Inc., which is now renegotiating payments and delivery schedules related to its orders of new aircraft. Some are also in property arm Robinsons Land Corp. (RLC), which will be deferring projects that it hasn’t started yet.
But Mr. Gokongwei noted the company will continue spending for the expansion of petrochemicals business JG Summit Petrochemicals Corp., which looks to immediately resume construction work for its production facilities once quarantine measures are lifted.
“We expect an overall delay of about three months in the completion of our project, but nonetheless, we do expect that the bulk of the expansion will be completed by 2020, with the last part…being completed in Q3 (third quarter) of 2021,” he said.
JG Summit posted a core net income decline of 19% to P4.3 billion in the first quarter, largely due to the slowdown in its airline and petrochemicals businesses and the increase in foreign exchange losses.
Consolidated revenues slid 10% to P67.9 billion, as the growth in the property and banking segments was offset by the declines in the airline and petrochemicals units and the flat revenues in the food unit.
“Coming from a strong performance in 2019, the unexpected turn of events driven by the evolving global pandemic started to have a material impact to the JG Summit group in the first quarter of 2020,” Mr. Gokongwei said in a statement.
Food group Universal Robina Corp. posted a 35% profit decline to P2 billion, mainly due to higher foreign exchange losses during the three-month period. Its topline was flat at a 0.4% uptick to P33.5 billion.
RLC contributed P3.3 billion in net income, jumping 82% from a year ago, on the back of changes in its accounting policy and lower operating expenses. Its revenues grew 68% to P11.4 billion.
Cebu Pacific operator Cebu Air swung to a net loss of P1.2 billion as travel restrictions dragged its passenger volumes during the three-month period. A 25% drop in revenues to P15.9 billion, together with higher aircraft maintenance costs and depreciation, weighed on the company’s bottomline.
JG Petrochemicals also posted a net loss of P1.1 billion, as unfavorable market conditions pushed its revenues down 71% to P2.8 billion. It noted dull demand, uncompetitive market prices, facility shutdowns and slow trading activity during lockdown as factors that affected its topline.
Robinsons Bank contributed P350 million in net income, surging 722% from the same time last year, as a 14% growth in consumer loans drove revenues up 23% to P2.3 billion.
As the rest of the world adjusts to a so-called “new normal”, Mr. Gokongwei said the plan of JG Summit is to continue investing in digital transformation initiatives, which will be anchored on new operating models that it will roll out across the group.
“The situation has… driven us to review our current business and operating models to adapt to the new normal as we predict shifts in the way consumers buy/use our products and services,” he said in a statement.
“With the strength of our balance sheet and the diversity of our portfolio, we expect to weather the COVID-19 situation and we hope to emerge stronger,” he added.
Shares in JG Summit at the stock exchange gained 60 centavos or 1.24% to P49 each on Thursday.
URC trims capex by up to P3 billion to conserve cash
UNIVERSAL Robina Corp. (URC) is taking off P2.5-P3 billion from its capital expenditure (capex) budget this year as part of efforts to survive the ongoing pandemic.
URC President and Chief Executive Officer Irwin C. Lee told stockholders in a meeting on Thursday the company usually allots capex of about P8-P10 billion every year, but this will have to be reduced in 2020.
“We’ve taken a very hard look at our capex plans for 2020, looked at what can be deferred, what can be saved, prioritizing the most critical ones. We’ve shaved somewhere between P2.5-P3 billion already from the 2020 plan,” he said.
“That’s an important part of shoring up our cash, prioritizing what’s important, and making sure that our capex is still working on the right projects that will help us into the future,” he added.
Mr. Lee said the coronavirus disease 2019 (COVID-19) pandemic has resulted in an uncertain outlook for the company’s future, as the global lockdowns to contain its spread has disrupted URC’s supply chain from raw materials to consumers.
The company’s net sales in the first quarter was tempered to a 0.4% uptick to P33.5 billion due to lower revenues from its international businesses, particularly in Indochina. Sales from its agro-industrial business also declined, partly due to lower hog prices from lingering worries over the African swine fever.
Its net income went down 32% to P2.1 billion during the period, mainly from non-operating foreign exchange losses on balance sheet items.
“We may see months of sporadic production suspension due to recurring quarantines, or raw material supply. It’s not just our operations that matter here. It’s those of our suppliers, of contractors, and of our transportation partners. A lot must go right in a very challenging environment, and not all of it will,” Mr. Lee said.
Despite the current environment, he said URC is confident it can withstand the challenges as it maintains a healthy cash position of P21.8 billion as of end March.
“We are working on capturing learnings on people productivity, planning for a new digital workplace, and overall accelerating our simplification of digital transformation efforts,” Mr. Lee said.
Shares in URC at the stock exchange fell P1 or 0.76% to P132 apiece on Thursday. — Denise A. Valdez
Senate plans one-year franchise for ABS-CBN
THE Senate is looking at granting ABS-CBN Corp. a provisional franchise of at least one year, which it plans to have approved on final reading by June 1, a Senate leader said on Thursday.
There are two bills pending on the media network’s franchise in the Senate: one proposing to grant it a 25-year franchise, and another providing a provisional franchise that will allow its operation to continue until June 30, 2022.
“Baka magkaroon ng compromise (There might be a compromise), definitely what we’re looking at is no less than a year provisional franchise,” Senate Majority Leader Juan Miguel F. Zubiri said in a virtual briefing.
The House of Representatives on Wednesday passed on second reading a bill that gives ABS-CBN a provisional franchise, which will expire on Oct. 21, 2020.
Mr. Zubiri said the five-month period may not be enough to tackle the 25-year franchise renewal of ABS-CBN and its unit ABS-CBN Convergence, Inc., as the Congress is also occupied in crafting pandemic response measures.
He also said that the process might be affected by the October congressional break as well as the rainy season.
The Senate Committee on Public Services is set to hold a hearing on the provisional franchises on Tuesday. Mr. Zubiri said the Senate version may be sponsored on Wednesday, which may be passed on second and third reading on May 25 and June 1, respectively.
“Plano namin May 25, maipapasa na on second reading. With the three-day rule, we can take it up again on June 1 for third final reading,” he said.
Senator Sherwin T. Gatchalian, who will be the presiding chair for ABS-CBN franchise hearings, sees a speedy deliberation on the proposal, considering it has already been “exhaustively” discussed in February.
Mr. Gatchalian said he supports the continued operation of the network, seeing the role media play in the middle of the crisis brought by the coronavirus disease 2019 (COVID-19).
“My personal view on the ABS issue is connected to the fight against COVID,” he said in a separate virtual briefing.
“Importante na lahat ng TV, radio, print, online, gumagana ngayon (It is important for all TV, radio, print, and online [entities] to be operating now), and the more we can disseminate and educate our people, the better,” Mr. Gatchalian said. — Charmaine A. Tadalan
FDCP launches surveys to see effect of COVID-19 on audio-visual industry
THE Film Development Council of the Philippines (FDCP) is asking audio-visual workers, their companies, and distribution companies to answer several online surveys for the council to be able to assess the impact of the COVID-19 pandemic and quarantine measures on the audio-visual (AV) industry.
The information gathered through the surveys will give the council “powerful information on what the government can do to mitigate the economic effects of the pandemic on the industry now and in the future,” according to a release.
Previously, the FDCP conducted a series of aid programs called DEAR (Disaster/Emergency Assistance and Relief) to give cash aid to AV workers, freelance members of the entertainment press, and live performers, crew, and staff. The aid program, which saw the FDCP re-allocate P20 million in its budget, provided cash aid of between P5,000 and P8,000 for every qualified individual.
The FDCP has so far released P12 million to aid 1,500 freelance AV workers and is currently processing more. The deadline for applications for aid is on May 15.
Those qualified for aid had to be included in the council’s film registry (though applying for aid and submitting registry application could be done at the same time). The aid programs were expected to help thousands of displaced workers, according to the FDCP.
And now, to see the scope of the effect of the pandemic on the entertainment industry, the FDCP is asking companies and individuals to answer several questions which include enumerating lost projects, actual/estimated total income lost from cancelled projects, and workdays lost.
Below are the links to the FDCP surveys:
For production companies, producers, or a company that provides goods, equipment, or services to the audio-visual industry which have experienced a loss of income as a result of the current pandemic: surveymonkey.com/r/CovidImpacttoAVcompanies
For freelance audio-visual workers: surveymonkey.com/r/CovidImpacttoAVFreelancers
For theater owners and/or distributors: surveymonkey.com/r/CovidImpacttoPHCINEMAS — ZB Chua
DMCI Holdings income plunges 78%
CONSUNJI-LED DMCI Holdings, Inc. recorded a huge profit fall in the first quarter, citing low market prices and the impact of the government’s quarantine measures to arrest the spread of the global pandemic since the latter half of March.
In a stock exchange disclosure, Thursday, the diversified conglomerate said it saw a 78% decline in net income in the quarter to P616 million from P2.7 billion in the same period in 2019.
Its core net income dropped by 64% to P1 billion from P2.8 billion in the same quarter a year ago, excluding a P414 million non-recurring loss due to sales cancellations for a DMCI Homes project in Davao City and a net loss of P91 million from the company’s share in the depreciation of the two power plant units of Sem-Calaca Power Corp. in 2019.
“Our consolidated results were weighted down by operational headwinds, low market prices and the initial effects of the enhanced community quarantine (ECQ),” DMCI Holdings Chairman and President Isidro A. Consunji said in a statement.
Semirara Mining and Power Corp.’s contribution to the listed holding firm’s core net income went down 51% to P623 million in the January-March period from P1.3 billion in the same quarter last year as average coal prices decreased by 16% and average electricity prices were down 27%.
DMCI Homes posted a core net loss of P197 million, lower than the P481 million it earlier recorded, due to slowdown in revenue recognition as the ECQ has impeded collections and completion of construction projects and as the construction cost for completed units in the preceding year has increased.
DM Consunji, Inc. delivered a lower income contribution to its parent, down 53% to P170 million from P359 million, citing lower margins for a number of projects, higher depreciation, and productivity losses related to quarantine measures.
DMCI Power Corp.’s contribution to the holding company also fell by 3% to P97 million from P100 million because of lower electricity dispatch in favor of hydropower plants in Oriental Mindoro.
DMCI Mining Corp. chipped in P26 million, lower by 75% from last year’s P103 million, as shipment of lower-grade nickel fetched lower prices in the market.
Further, Maynilad Water Services, Inc. remitted a net income contribution of P379 million to DMCI Holdings, 13% lower compared with first-quarter 2019’s P436 million, as it was affected by lower water consumption among commercial and industrial customers, and higher depreciation and amortization due to its capital expenditure program.
Mr. Consunji said that the next quarters will be more challenging for the firm as he expects the full impact of the virus-related restriction measures on its businesses.
“We expect the succeeding quarters to be even more challenging because of the full impact of the coronavirus containment measures,” he said.
On Thursday, shares in DMCI Holdings declined by 2.82% to close at P4.13 each. — Adam J. Ang
How the arts have been helping during hard times
THE enhanced community quarantine (ECQ) in Metro Manila has hit its 60-day mark. While selected industries will slowly begin to resume operations as the metropolis transitions to a modified enhanced community quarantine (MECQ), live performances and other activities which entail large gatherings remain postponed. Still, over the past two months, singers, musicians, actors, directors, and writers have collaborated to raise money for the benefit of those who have been badly affected by the enhanced community quarantine. And they are already planning for the future.
The Open House online fundraising program — headed by the Artist Welfare Project, Philstage, SPIT MNL, Third World Improv, and the Theater Actors Guild and Ticket2Me — has focused on raising funds for displaced performing arts workers. Meanwhile, the daily concert fundraiser Bayanihan Musikanhan, organized by National Artist for Music Ryan Cayabyab, has focused its fundraising efforts on urban poor communities affected by the COVID-19 crisis.
OPEN HOUSE
Started on March 26, Open House mounted online programs ranging from concerts, to interviews and roundtable discussions participated in by various artists from Philstage member companies and iWant series, among others.
In a phone interview with BusinessWorld, Philstage Corporate Secretary and Open House Head of Programming Alvin Trono noted that the programs have been “highly collaborative” with artists from theater, music, and television joining forces on the project.
“The current form of Open House has tried everything possible and reached out to a different audiences,” Mr. Trono said.
Open House will stream its final show today which features a culmination of all the events that happened since the start of the program in March. (Visit https://www.facebook.com/OpenHouseFundraiser/ for updates).
Plans are underway for Open House to continue after May 15, Mr. Trono noted, this time as a money generative platform for artists and as a way to showcase more educational content for audiences.
Over the past two months, Mr. Trono said they have observed that the online programs with the most streams and views were of workshops and roundtable discussions due to its “value of learning” and ability of “introducing more audiences to the theater world.”
As for monetizing the content, Mr. Trono noted while plans have yet to be finalized. “There are specific both private and government institutions that are interested in collaborating with us at this point,” he said.
What started as a temporary platform will continue post quarantine and COVID-19.
“We will continue to develop material that will extend our reach from marketing promos, short shows, and post performance discussions,” Mr. Trono said. “We’re going to continue the platform for discussion, for archival purposes, on the state of Philippine culture now, and record that for posterity for future generations.”
Since it started on May 7, Open House has raised P1,001,000 to support 500 workers.
BAYANIHAN MUSIKAHAN
The online concert fundraiser Bayanihan Musikahan launched on March 20 with five separate concerts which kicked off with National Artist for Music Ryan Cayabyab.
“We began with a simple concept to go organic, foregoing the usual concert trappings and simply asking the artists to sing from their homes — with whatever equipment they have,” independent curator, art critic, and writer Marian Pastor Roces, who is head of communications of the fundraiser, told BusinessWorld in an e-mail. “Some are new to the possibilities of online streaming. Artists helped artists with the technology. Mr. C (Ryan Cayabyab) educated himself quickly on the new media.”
The fundraiser has conducted more than 100 concerts since it began, and has raised more than P70 million in cash as of May 6, and another estimated P20 million in kind as of May 9.
The campaign partnered with Philippine Business for Social Progress (PBSP) and the Samahan ng Nagkakaisang Pamilya ng Pantawid (SNPP) for its relief efforts.
“We have delivered food to more than 50,000 urban poor families; given hot meals daily to 300 homeless individuals housed temporarily at College of St. Benilde; financed one barangay quarantine center in Quezon City; bought nearly 700 tons of vegetables from farmers in Benguet and other provinces, for distribution in Metro Manila,” Ms. Roces wrote.
Bayanihan Musikahan’s second season of programs will continue throughout May.
“We hope to be able to build a permanent facility for the homeless, under the supervision of St. Arnold Janssen Kalinga Center founder Fr. Flavie Villanueva; a massive production of face masks by urban poor communities; upgraded carinderias (roadside eateries) for a different model of food distribution, and another barangay quarantine center,” Ms. Roces wrote.
“This way, when the concerts are over, the project would have left economically viable activities that extend even beyond the pandemic. We want Bayanihan Musikahan to be the gift that keeps on giving.” she wrote.
To watch the previous Open House shows, visit https://www.facebook.com/OpenHouseFundraiser/. To donate, visit https://ticket2me.net/e/5778?fbclid=IwAR1FzpYOWCehLVeTFb_h5Dj8ZNCiVwVH5XCzu0Gm90byyUZ1MbsahwpT13c.
To watch the previous and upcoming Bayanihan Musikaha shows, visit https://www.facebook.com/bayanihanmusikahan/. For more information and donation details, visit https://www.bayanihanmusikahan.org/. — Michelle Anne P. Soliman