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Petron sheds P14 billion in first semester

PETRON CORP. posted P14.2 billion in total net loss in the first six months of 2020 as the coronavirus pandemic brought down the demand for fuel products, leading to poor refining margins and collapse in prices.

In the first half of last year, the country’s largest oil refining and marketing company posted a net income of P2.6 billion.

The listed fuel retailer told the stock exchange on Tuesday that its consolidated revenues plunged by a fourth to P152.4 billion with total sales volume down 19% to 41.9 million barrels.

Its Philippine business recorded a 28% decline in sales volume, noting low take-up of its aviation and retail products during the lockdown months.

The company continues to improve its productivity and cut down expenses to cope with the pandemic’s impact, said Petron President and Chief Executive Officer Ramon S. Ang.

“At the same time, we have initiated cash preservation initiatives and prudently manage our capex (capital expenditure),” he added.

After losing P15 billion from its inventory in the first half, the oil firm sees “modest” inventory gains of about P3.5 billion in the second half of the year as prices start to pick up, according to Mr. Ang.

Petron closed its Bataan Refinery in May for maintenance activities on the plant’s major process units, expecting that it will cushion the impact of falling demand and low refining margins.

“As the economy slowly reopens, we will need to find new ways to adapt to these new and unprecedented economic realities and remain resilient,” he said.

Shares in Petron grew by 1.32% to close at P3.06 each on Tuesday. — Adam J. Ang

Accusations of plagiarism swirl around contest winner

THE grand prize winner of Popeyes’ online talent competition is now under fire after his winning video montage of Eraserheads songs was called out for allegedly ripping off the musical arrangement of Ang Huling El Bimbo: The Musical.

On Aug. 2, shortly after the CJ Villavicencio was named the winner of the Pop Stage competition, musician and composer Myke Salomon took to Twitter to accuse Mr. Villavicencio of having “copied/ripped-off our musical arrangements” for the musical including its “musical treatment [and] concept” without permission.

“He won P1 million and an artist contract. I feel bad for the other contestants,” Mr. Salomon said in the tweet before adding that since the production and the judges included “concept and originality” in their criteria for judging, it meant that they “tolerate ripping off.”

Pop Stage is an online talent competition which started in May conducted by food chain Popeyes Philippines and Viva Artists Agency. Contestants were asked to submit entries online showing off their talents. The grand prize winner of the tilt would get P1 million and an artist contract from Viva.

Ang Huling El Bimbo: The Musical is a jukebox musical featuring the songs of the Eraserheads with musical arrangements by Mr. Salomon. The coming-of-age musical enjoyed two sold out runs in 2018 and 2019. The musical became available for streaming for 48 hours on May 8 and 9 on ABS-CBN’s Facebook and YouTube pages as a fundraising project for those suffering from COVID-19 (coronavirus disease 2019) via the ABS-CBN Foundation’s Pantawid ng Pag-ibig program.

On July 27, Mr. Villavicencio uploaded his music video — a medley of songs including “Alapaap,” and “Pare Ko” (both of which were used in the musical) — with an accompanying note written in Filipino that the video and performance was for “all students, former students, and those who weren’t given the chance to be students” and that he was “happy to conceptualize, write, and co-direct this performance.”

There was no mention of the musical until July 30 when he edited the post to say, “Thanks for the inspiration, Ang Huling El Bimbo: The Musical. You gave us the drive to persevere in life.”

Aside from Mr. Salomon, other people were quick to notice the similarities between the arrangements of the medley and the musical, with El Bimbo ensemble cast member Stephen Vinas posting a video of a side-by-side comparison of the songs in question as used in the musical and Mr. Villavicencio’s performance. Another actor, Jeff Flores, also release a video comparing the song “Pare Ko” as performed in Ang Huling El Bimbo and Mr. Villavicencio’s video.

And then, on Aug. 3, Eraserheads frontman Ely Buendia took to Facebook to lament that “there is still a culture out there, not just in entertainment, that somehow makes it okay to take credit, and be rewarded, for someone else’s work.”

In particular Mr. Buendia pointed out that the Reserve Officers Training Corps sequence of the Ang Huling El Bimbo featuring “Pare Ko” was his favorite piece in the musical as “the most striking and original renditions I had witnessed and enjoyed during its original run.”

“It took something old and was inspired to make it new and fresh. Therein lies the difference,” Mr. Buendia said.

Mr. Villavicencio’s entry also featured the song “Pare Ko” while dancing on bleachers, seemingly using the arrangement of the musical.

Mr. Buendia pointed out, the musical’s crew “poured all their hearts and souls in creating something that was true to material and to their craft” and that he hoped “this matter is resolved soon and credit is given to those who deserve it.”

Mr. Villavicencio’s last post on his Facebook page, which announced the finals’ show, was first filled with comments wishing him good luck and congratulations, then flooded with comments accusing him of being a copycat.

BusinessWorld has reached out to both Popeyes Philippines and Mr. Villavicencio and as of this writing has not heard back from them. — Zsarlene B. Chua

Globe income down nearly 8%, capex guidance cut by 20%

By Arjay L. Balinbin, Senior Reporter

THE second-quarter net income of Globe Telecom, Inc. declined 7.8% to P4.90 billion from P5.32 billion in the same period last year due to the impact of coronavirus lockdowns on its operations.

Compared with its first-quarter net income attributable to the parent of P6.6 billion, Globe’s latest net income is lower by 26%.

Globe’s service revenues in the second quarter declined 3.6% to P35.54 billion from P36.88 billion during the same period last year. The amount is also lower by 4% compared with the service revenues posted in the first quarter of the year.

In a regulatory filing, the Ayala-led telecommunications company said the decline in its revenues was mainly caused by the impact on its operations of the enhanced and modified enhanced community quarantine implemented in various areas during the period despite the surge in data revenues, which now account for 75% of total service revenues from 70% last year.

Globe’s mobile business revenues for the second quarter was down 6.55% to P25.04 billion from the first quarter’s P26.79 billion, mainly due to the decline in acquisition and prepaid top-up. It did not indicate its mobile business revenues for the same period last year.

“This was driven by the continued decline from traditional voice (-16%) and mobile SMS (-30%) as partly mitigated by the increase in mobile data (+5%). Compared to the prior quarter,” Globe said.

Home broadband revenues surged by 16% to P6.73 billion in the second quarter from the previous quarter’s P5.78 billion. Corporate data revenues dropped by 9% to P2.95 billion from P3.25 billion.

“While we expect revenues for full-year 2020 to decline by low single digit against last year, given the impact of community quarantine restrictions, we do see growth opportunities on the home broadband front and ICT space,” Globe President and Chief Executive Officer Ernest L. Cu said in a statement.

“Higher demand for internet connectivity and cloud solutions are expected as companies have been forced to embrace remote working for employees and to fast-track their digitalization efforts. Mobile data and digital solutions will also increase traction with more customers adopting a digital lifestyle in the new normal,” he added.

CAPEX GUIDANCE LOWERED
Globe revised its capital expenditure (capex) guidance for the year, lowering it to P50.3 billion from the original guidance of P63 billion “given the delays in the rollout” during the strict quarantines.

It said it had invested a total of P20.9 billion in its network in the first half of the year, “10% higher than last year and representing 29% of gross service revenues and 54% of EBITDA” or earnings before interest, taxes, depreciation, and amortization.

“Bulk of the capex spending went to data-related requirements, comprising 76% of the total capex spending for the period,” Globe added.

Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco told BusinessWorld via e-mail that Globe was “able to limit the percentage decline of both its top line and bottom line to single digits which shows the strength of the company amid the pressing times.”

He said Philstocks still expects strong demand for data services in the second half as many businesses continue with their digital transformation to cope up with the new normal.

“The shift of our education to online platforms are also expected to boost demand for telecommunication services. All of these could help Globe for the remainder of the year if it would be able to capitalize on these opportunities. With these, we’re also even seeing the possibility of Globe posting slightly better revenues for 2020 compared to 2019,” Mr. Tantiangco added.

Shares in Globe on Tuesday closed 2.78% higher at P2,070 apiece.

CCP’s outreach apprenticeship program goes virtual

THE Cultural Center of the Philippines (CCP) is holding its third outreach apprenticeship program for regional artists and cultural workers, but this time everything will be held virtually.

“Sharing and learning among practitioners in the field of arts and culture must continue despite the difficulties brought by the COVID-19 pandemic. Time and again, the arts have been proven to be a powerful gift that any person, community and nation can actually benefit and make use for healing, survival, transformation, development and peace. These are the very reasons why we pursue our regional community cultural outreach programs,” Chinggay Bernardo, the CCP’s cultural exchange department (CED) manager, said in a release.

Launched in 2018, the program has so far mentored 40 apprentices from 20 provinces nationwide. The program included modules on production management, production design and technical services, cultural exchange, and museum and gallery management, among others. The modules were “specifically designed for arts and culture practitioners” from the regional art centers in the country as it aims to advance “the culture, arts, and theater management in the regions and enhance their competence level and skills,” according to the release.

This year, the program modules will include management, production management, tour management, production design, venue operations and technical theater. Everything will be done virtually and will be done “utilizing various technology and new media platforms.”

The mentors will include CCP’s key officers and other experts — Aurea Brigino (UP Diliman/Arts Management), Chinggay Bernardo (Arts-Tour Management), Ricardo Cruz (Production Design), Nikki-Garde Torres (Production Management), Sar Canlas-Tala (Venue Operations), Arnelio Manzano and Orlan Absin of the CED for Technical Theater.

The program will run from Aug. 4 to 28.

This year’s batch of 28 will also get a chance to converse with masters of arts in various fields “through a series of colloquiums,” the release said.

For more information, contact the CCP Cultural Exchange Department via ccp.ced2014@gmail.com. — ZBC

DoubleDragon generates $75M from dollar bonds

DOUBLEDRAGON PROPERTIES CORP. has raised $75 million from its debut in the offshore bond market, which will support capital expenditures and refinance existing obligations.

In a disclosure to the exchange on Tuesday, the property firm said it has recently concluded the issuance of five-year senior guaranteed bonds with a rate of 7.25%, conducted through its wholly-owned subsidiary DDPC Worldwide Pte. Ltd.

The bonds have been listed at the Singapore Exchange Securities Trading Ltd.

Credit Suisse (Singapore) Ltd. acted as sole global coordinator, and with PNB Capital and Investment Corp., as joint lead managers and joint bookrunners for the offering.

“The fresh funds from this new five-year $75-million bonds offering and the planned P16.97-billion REIT (real estate investment trust) IPO (initial public offering) are expected to significantly increase the cash position of the company,” it said.

DoubleDragon posted a cash flow of P5.31 billion at the end of the first quarter. Its total assets stood at P115.32 billion and total equity at P44.50 billion.

In its earlier disclosures, the company said proceeds from the bonds are planned to support its capital expenditures, maturing and existing loans, and general corporate purposes.

Earnings of DoubleDragon dropped 42% to P536.69 million in the first quarter due to a one-off fair value gain in 2019. Excluding this, its core net income surged 133% to P427.94 million.

The company is planning to file its REIT application with the Securities and Exchange Commission this month, with a target of listing the REIT shares by October.

The REIT plan involves seven buildings comprising 248,349 square meters (sq.m.), whose consolidated value is estimated at P50.89 billion. The offering of its shares is expected to generate P16.97 billion for the company, which will be reinvested to build 450,000 sq.m. of leasing space.

Shares in DoubleDragon at the stock exchange increased 12 centavos or 0.75% to P16.10 each on Tuesday. — Denise A. Valdez

Japan’s renowned artists find inspiration from pandemic

TOKYO — Some of Japan’s best-known artists are finding new avenues of expression in areas such as online communication and the environment, as the novel coronavirus outbreak sparks ideas as radical as renaming the country’s “Reiwa” imperial era.

Five contemporary artists including Takashi Murakami were on hand on Thursday at Mori Art Museum for the unveiling of their STARS exhibition, which had been delayed by several months as the museum closed due to the pandemic.

Murakami, with works on display including his iconic life-size sculptures Miss Ko and My Lonesome Cowboy as well as two new 20 meter length paintings, said expansion of his online business since lockdown was helping him communicate more closely with fans.

“The museum exhibition was delayed and we’re still not in a situation where a lot of people can gather, but I think human beings need communication through art,” Murakami told reporters outfitted in mandatory masks and face shields.

“So I’m conveying various messages in detail online,” he said.

South Korean-born Lee Ufan, a resident of Japan since the 1950s and known for promoting the “Mono-ha” art movement, described the pandemic as a warning over the impact that human development was having on the environment.

He highlighted the improvement in air quality and freedom for wild animals to roam while the world was locked down.

“This is the turning point where we need to go back to nature,” Lee said.

Photographer Hiroshi Sugimoto, active in the United States since the 1970s, suggested turning the page on the pandemic by renaming the current Reiwa era, which began in May last year with the enthronement of a new emperor.

He noted that Japan in ancient times changed era names when there was a disaster or epidemic.

“We should immediately change the name Reiwa,” he said.

“It’s like a calling from the gods — Reiwa is not a good name!”

The exhibition, open to the public from Friday, also features works from Yayoi Kusama, Tatsuo Miyajima, and Yoshitomo Nara. — Reuters

Sustained housing demand lifts 8990 profits up 12%

By Denise A. Valdez, Senior Reporter

MASS HOUSING developer 8990 Holdings, Inc. booked 12% higher earnings in the first quarter of the year, on the back of sustained demand for its products in Metro Manila and key regions.

In a disclosure to the exchange on Tuesday, the company said its net income reached P1.32 billion in January to March, supported by the 15% growth in its consolidated revenues to P3.47 billion.

It sold a total of 2,291 housing units during the three-month period, increasing by 4% from the same three months last year.

Real estate sales advanced 17% to P3.38 billion, and rental income improved 8% to P1.4 million.

However, the company said in a statement it expects its second-quarter performance to slow down.

“We had an exceptional 2019 and first-quarter growth. However, we do expect a softening in the second quarter given that, as part of the Philippine government’s nationwide effort to contain the virus, nonessential businesses nationwide, including real estate, had to stop operations for most of the second quarter,” said Alexander Ace Sotto, 8990 acting president and chief operating officer.

The government implemented strict stay-at-home protocols starting mid-March to contain a coronavirus outbreak that has since sickened 106,330 and killed 2,104 in the Philippines.

8990 said its focus in the second half of the year is to preserve cash that will carry it through the health and economic crisis.

“Liquidity will be critical to overcome this pandemic and move towards recovery,” Mr. Sotto said.

Some of the company’s initiatives so far are suspending its buyback program, adjusting its capital expenditures, maintaining a good standing with banks, optimizing inventories and lowering operating expenses.

“It is difficult to determine when this pandemic will end or how much of it will still unfold in the coming months. But we are confident that we are in a good position, liquidity-wise, and are ready to respond to opportunities when they present themselves, leading to an eventual recovery in the industry,” Mr. Sotto added.

Shares in 8990 at the stock exchange chipped off eight centavos or 0.94% to P8.45 each on Tuesday.

Giant cherry with cream, fly and drone unveiled on London’s Fourth Plinth

LONDON — A nine-ton sculpture of a giant swirl of whipped cream with a cherry on top, as well as a fly and a drone, was unveiled on Trafalgar Square’s Fourth Plinth in London on Thursday.

The sculpture by Heather Phillipson, entitled THE END, is the latest in a series of contemporary artworks to be displayed on the plinth over the past two decades.

Phillipson told Reuters that she got the idea for the work in 2016, when Britain had just voted to leave the European Union and Donald Trump was campaigning for the US presidency.

“Cream is this slightly impossible substance when wet, it’s full of air so it means it’s always on the verge of collapse, which is a state I felt we were in,” she said, adding that some of those unsettling feelings had been heightened by recent events such as the coronavirus pandemic.

The sculpture depicts a fly crawling up the side of an enormous swirl of cream, which is topped by a glossy cherry on which a drone rests. The drone’s camera transmits a live feed of a small patch of Trafalgar Square to the website http://www.theend.today.

At more than nine meters in height, THE END is the tallest work to date to be displayed on the plinth. Phillipson said she wanted the cherry’s stalk to be very tall to rival Nelson’s Column, the centerpiece of the square.

Phillipson said she had attended both festivals and protest marches in Trafalgar Square, and also often walked through the square in her daily life, and she wanted to reflect those different dimensions in her sculpture.

“It kind of speaks to ideas of celebration, but also something very uneasy at the same time. You know, that there’s something potentially imploding,” she said.

The unveiling of the work was delayed by four months because of the impact of the coronavirus outbreak. It will remain in place until the spring of 2022.

Previously, the plinth in the northwest corner of the square in central London lay empty for more than 150 years after funds ran out to erect an equestrian statue as originally planned. — Reuters

Green developer Italpinas records 29% income growth despite lockdown

ITALPINAS DEVELOPMENT CORP. (IDC) continued posting a double-digit income growth in the second quarter despite the strict quarantine rules to contain the coronavirus disease 2019 (COVID-19) outbreak.

In a regulatory filing sent to reporters on Tuesday, IDC said its net income stood at P19.59 million, higher by 29% from the same period a year ago. Its net sales jumped 48% to P144.23 million.

On a six-month basis, IDC’s net income is up 44% to P35.31 million, and its net sales stood 36% higher to P278.69 million.

“The key factor behind this extraordinary performance despite the COVID-19 pandemic is the sustained positive market response to IDC’s new green projects,” IDC Chairman and CEO Romolo Nati said in a statement.

Among the projects it sold during the first half were Miramonti in Sto. Tomas, Batangas and the second phase of Primavera City in Cagayan de Oro.

“During the lockdown, people understood more than ever how important [it] is to live in a comfortable and sustainable environment that can offer easy and direct access to open spaces,” Mr. Nati said.

He added many believe COVID-19 spreads faster in environments with poor ventilation, so IDC’s products became viable living options and continued selling during the pandemic.

IDC prides itself as a green real estate developer with condominium projects that are certified green buildings.

“[W]e see that the market is more and more discerning about what it means to be truly ‘green.’ We respond with innovation and sustainability which is accessible in terms of price,” IDC President Jose D. Leviste III said in the statement.

Shares in IDC at the stock exchange inched up five centavos or 2.81% to P1.83 each on Tuesday. — Denise A. Valdez

Maynilad says La Mesa treatment plant 1 upgrades complete

UPGRADES to the facilities in La Mesa Treatment Plant 1 in Quezon City were finally completed and put into commission, according to Maynilad Water Services, Inc.

On July 31, Maynilad said modifications to plant 1 of the treatment facility were finished such as the rehabilitation of eight sedimentation basins and 16 filters and the construction of a sludge treatment facility.

The upgrades are part of Maynilad’s P7.9-billion project to improve La Mesa Treatment Plants 1 and 2, which produce a combined 2,400 million liters of water daily and serve 90% of its 9.7 million customers.

Maynilad said that once all upgrades are done, the two La Mesa treatment plants will have better water treatment capacity, automated processes and earthquake-resilient structures.

In a separate release, the Metropolitan Waterworks and Sewerage System (MWSS) said that other upgrades to the two treatment plants include the construction of pumping stations, laying of pipelines, installation of a new solar power system, settlers, sludge scrapers, control units, and safety and security systems.

“The upgrade is being done in phases so that the facilities can operate without interrupting water services for Maynilad customers,” the MWSS said.

Present in the commissioning activities were Environment Secretary Roy A. Cimatu, Maynilad President Ramoncito S. Fernandez, MWSS Administrator Emmanuel B. Salamat, National Water Resources Board Director Sevillo D. David, and other government personnel and stakeholders.

Metro Pacific Investments Corp., which has majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave

Postcard reveals site of Van Gogh’s ‘farewell note in color’ before suicide

PARIS — Stuck at home during lockdown, Dutch researcher Wouter van der Veen finally found time to look through old postcards of the French village where Vincent van Gogh died and made a remarkable discovery.

One postcard showing gnarled roots and tree trunks along a road in Auvers-sur-Oise, close to Paris, bore a remarkable similarity to the Dutch artist’s last painting, Tree Roots.

The painting in vibrant blue and green is believed to be his last work, created on the day he shot himself, July 27, 1890.

He died two days later.

Van der Veen, scientific director at the Institut Van Gogh in Auvers, told Reuters that early this year he had received a large collection of early 20th century postcards from a 94-year-old woman in Auvers village.

“Like everyone else in France, I was in lockdown and used that time to digitize the postcards, when I recognized the outlines of the tree roots on the card. It was in black-and-white, but the shapes were the same,” Van der Veen said.

He sent his findings to colleagues at Amsterdam’s Van Gogh museum, where the painting hangs, which agreed the postcard of rue Daubigny — 150 meters from the Auberge Ravoux inn where Van Gogh died — likely shows the location of his last painting.

“The proposed place has a very good chance of being the right one in our view. It is a beautiful discovery,” said Van Gogh museum researcher Teio Meedendorp in a joint statement with the Auvers-based Institut Van Gogh.

His colleague Louis van Tilborgh, art history professor at Amsterdam University, said the museum initially was cautious, but that the trees’ outline, the location near the inn, research by a tree specialist and letters from Van Gogh relatives all converge to identify the spot.

The area has now been fenced off for protection and will be made available for public viewing later.

Van der Veen said the painting’s theme of coppiced trees seems to be a message from Van Gogh, a farewell note in color about death and regeneration.

“When you chop firewood from a trunk, new growth sprouts. His message was that his work was done. Later that day, in cornfields nearby, he shot himself in the chest,” he said. — Reuters

Gov’t fully awards 35-day T-bills as strong demand pulls rate down

THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Tuesday as rates declined amid strong demand.

The Bureau of the Treasury (BTr) raised P15 billion as planned via the 35-day T-bills on Tuesday. The offer was more than two times oversubscribed, with tenders hitting P31.725 billion.

The average rate of the 35-day papers dropped 52.7 basis points (bps) to 1.157% from the 1.684% fetched in the June 30 auction.

National Treasurer Rosalia V. de Leon told reporters that T-bill rates were pulled down by strong demand as investors continue to “park liquidity in government securities.”

Ms. De Leon said the average rate fetched for the 35-day T-bills yesterday was likely a record low.

“I would suppose (the rate is) lowest since (we) have not issued the 35-day tenor in recent years,” she said via Viber.

Short-term papers remained attractive to investors seeking to park their excess funds in safe-haven assets despite the declining rates, Kevin Palma, a peso sovereign debt trader at Robinsons Bank Corp., said via Viber.

“The 35-day offering often attracts a wide array of investors given the need to deploy some excess cash to safe haven such as this short term paper,” Mr. Palma said.

“Icing on the cake is the reinvestment demand from a maturing T-bill on August 7 that amounts to P34 billion,” he added.

The Bangko Sentral ng Pilipinas (BSP) has cut benchmark interest rates by 175 bps so far this year to cushion the impact of the ongoing pandemic on the economy. Rates on the BSP’s overnight reverse repurchase, lending and deposit facilities stand at record lows of 2.25%, 2.75 and 1.75%, respectively.

The central bank has also trimmed the reserve requirement ratios (RRR) of banks to inject more liquidity into the financial system to boost lending.

The RRR of thrift and rural banks were cut by 100 bps last month to three percent and two percent, respectively. This released an estimated P10 billion in additional liquidity into the market.

The central bank in April also trimmed the reserve requirement for universal and commercial banks by 200 bps to 12%.

The government has set a P170-billion borrowing program for August. It will auction off P110 billion in T-bills weekly and P60 billion in Treasury bonds fortnightly.

It borrows from local and foreign lenders to plug its budget deficit seen to hit 8.4-9% of gross domestic product this year. — Beatrice M. Laforga

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