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PSEi stays above 7,800 in quiet trading ahead of break

STOCKS ended mostly flat on Wednesday as trading was quiet ahead of the Holy Week break.

The bellwether Philippine Stock Exchange index (PSEi) climbed 0.11% or 8.69 points to close at 7,835.15 on Wednesday. The broader all-shares index also went up 0.17% or 8.54 points to end at 4,836.68.

“A quiet trading session today heading into Holy Week with the Nasdaq [Composite index] breaking the key 8,000 level. US markets rose with the Nasdaq breaching above the crucial 8,000 handle for the first time in six months as investors digested a slew of corporate earnings,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message on Wednesday.

“Value turnover was indeed low at only P4.9 billion (ex-blocks), and only at P3.3 billion (ex-crosses),” Papa Securities Corp. Sales Associate Gabriel Jose F. Perez said in an e-mail.

Total value turnover stood at P5.45 billion on Wednesday as 694.40 million shares changed hands, down from the previous session’s P7.14 billion.

Mr. Perez noted that Robinsons Land Corp., Bloomberry Resorts, Corp. and PLDT, Inc. recorded the biggest gains on Wednesday at 5.2%, 3.5% and 2.4%, respectively.

Sector counters were split between gainers and losers. Services led advancers, gaining 1.45% or 23.02 points to close at 1,607.61. Financials rose 1.41 or 24.36 points to 1,741.70 and industrials increased 0.07% or 8.55 points to 11,612.93.

Meanwhile, mining and oil shed 0.7% or 54.98 points to close at 7,734.42; holding firms fell 0.69% or 52.48 points to 7,494.89; and property declined 0.35% or 14.68 points to 4,180.35.

Advancers trumped decliners, 110 to 73, while 45 issues closed unchanged.

Foreigners turned net sellers on Wednesday, logging a P63.33-million net outflow. This is a reversal of the previous day’s net purchases worth P365.97 million.

“PSEi’s movement on Monday could likely be dictated by how US markets move for the next 3 nights given the lack of catalysts in the local front, so best to watch out for that,” Mr. Perez said. — D.A. Valdez

Tax reform uncertainty to linger

By Charmaine A. Tadalan
Reporter

THE REMAINING PACKAGES of the tax reform program — a key support of the government’s P8-trillion stepped-up infrastructure development push, will continue to face uncertainty in the new 18th Congress that opens on July 22, according to one legislative leader.

Asked on prospects of future tax reform bills after two earlier measures were watered down after going through the eye of a needle in both chambers of the 17th Congress, Senate President Vicente C. Sotto III said in a mobile phone message on Monday that this and other priorities will be “up for discussion with the executive department after elections.”

“We need to discuss. It’s touch and go,” said Mr. Sotto, who is one of the 12 incumbent Senators who will serve in the 18th Congress.

The country will be voting for a new House of Representatives and half the Senate, besides a host of local government positions on May 13.

A Global Markets Research note released by Nomura International (Hong Kong) Ltd. on April 11 said President Rodrigo R. Duterte will likely have enough allies in Congress to push remaining tax measures after elections, citing his consistently high public satisfaction ratings.

The Department of Finance (DoF) said separately that it will continue to impress on lawmakers — especially newly elected ones — the indispensable role tax reforms play in shifting the tax burden on those who can afford to pay more, increasing collections in the process that will help fund improvements in social services and infrastructure. By law, all tax measures have to emanate from the House.

“We will continue our efforts to convince about the economic benefits of the tax packages,” Finance Assistant Secretary Maria Teresa S. Habitan said in a mobile phone message on Tuesday.

“DoF has been consistent in our advocacy to have the remaining tax reform packages passed by Congress as soon as possible. We believe that the Senate is still able to do its part in making this happen. Otherwise, we will again submit the tax reform packages to Congress,” she also said.

The 17th Congress, now on a Feb. 9-May 19 break for the May 13 midterm elections, will have just May 20-June7 to act on remaining legislative measures. Mr. Sotto had said on March 20 that it was “doubtful at this point” that his chamber could approve any more tax reforms in those remaining session days. Bills left unapproved by both chambers at the end of that period will have to be refiled in the 18th Congress.

Mr. Duterte has so far signed two tax reforms into law, while bills providing three more tax reform packages have bagged final-reading approval at the House of Representatives but remain at committee level in the Senate.

Enacted were Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) Act, which slashed personal income tax rates and increased or added levies on various goods and services, besides removing several value added tax exemptions, as well as RA 11213, or the Tax Amnesty Act, which grants estate tax amnesty and amnesty for delinquent accounts that remained unpaid even after being given final assessment by the Bureau of Internal Revenue.

Other tax reforms pending in the Senate Ways and Means committee entail bills to reduce corporate income tax rates and remove redundant fiscal incentives, simplify the tax structure of the financial sector, centralize real property valuation and assessment; increase government share in mining revenues and even higher excise tax rates for alcohol and tobacco products.

Asked if such uncertainty will push Mr. Duterte to intervene again to push tax reforms, Presidential Spokesperson Salvador S. Panelo replied: “Hindi, kasi alam na ng members ng Congress ang mga projects ng Presidente (No need, since members of Congress know the President’s projects).”

“If they’re supportive, they will support it.”

TRAIN was heavily watered down as it went through both the House of Representatives and the Senate, even after Mr. Duterte had talked to lawmakers in early 2017 and made a veiled threat in a State of the Nation Address afterwards about withdrawing support for the candidacy of one Senate leader come elections.

For Ateneo Policy Center senior research fellow Michael Henry Ll. Yusingco, a lawyer, much will depend on Mr. Duterte’s public satisfaction ratings in the second half of his term, which ends in mid-2022.

“I do not think tax reform will be a priority of Congress this year. Maybe it will be tabled early next year, if at all. Depends on the popularity of President Duterte by that time. If his trust ratings remain very high, then the administration may still have a decent chance at pushing tax reform legislation,” he said via e-mail, Monday.

“But if his trust ratings slide down to poor or bad, then the administration will likely abandon any tax reform initiatives. And Congress will not be keen by then to touch this matter for sure.”

Mr. Yusingco added Congress is more likely to focus on charter change and reforms in the water and power sector, in light of the recent crises.

2019 budget cut down to P3.66 trillion after veto

MALACAÑANG on Tuesday said the P95.3-billion allocations President Rodrigo R. Duterte vetoed in the original P3.757-trillion national budget for 2019 were found to be “unconstitutional.”

“Those are the so called ‘insertions,’ ‘riders,’ they are not part of the program by the DPWH (Department of Public Works and Highways), hence, they violate the Constitution,” Presidential Spokesperson Salvador S. Panelo said in a briefing, Tuesday.

Mr. Duterte on Monday signed the national budget into law as Republic Act No. 11260, or the “General Appropriations Act for Fiscal Year 2019.”

He partially vetoed the budget, cutting it to P3.662-trillion, including P95.3 billion under the DPWH budget which Mr. Panelo confirmed were among the post-ratification realignments.

Asked if the vetoed items were among the “last-minute” fund realignments made by the House of Representatives, Mr. Panelo replied “Correct, it is.”

Among others, Mr. Duterte also directly vetoed some appropriations under the Department of Labor and Employment-National Labor Relations Commission, Department of Agriculture, Department of Health and Department of Trade and Industry.

The 2019 budget, which failed to secure year-end 2018 enactment, was transmitted to the Office of the President on March 26 after a row between the House of Representatives and the Senate over alleged realignments made after its ratification on Feb. 8.

Senator Panfilo M. Lacson, Senate Finance committee vice-chairman, said budget is now “pork-free” after the partial veto.

“I am confident the 2019 budget is now-pork free as the Senate leadership made sure that our LBRMO (Legislative Budget Research and Monitoring Office) had scrutinized enough before submitting to DBM (Department of Budget and Management) under (Acting) Sec. Janet (B.) Abuel the list of questionable items,” Senator Lacson said in a statement on Tuesday.

“The economic team in turn promised to go over the list, and more with a fine-toothed comb, including individual insertions made by some senators amounting to at least P20B[illion].”

House Appropriations committee Chairman Rolando G. Andaya, Jr. of Camarines Sur’s 1st District, however, that insertions by some senators could still be “intact”.

“It behooves the Senate to tell the people how much in their insertions were carried in the national budget, and how big is the bacon each senator is bringing home.”

Sought for comment, Political Science Professor Marlon M. Villarin of the University of Sto. Tomas said the recent budget development might affect the President’s rapport with members of the House of Representatives and some local officials.

“Socially, it won’t affect President Duterte’s priority projects because all are programmed well in the 2019 budget,” Mr. Villarin said in a mobile phone message on Tuesday.

“But this will politically affect his relationship both with members of the House and some local gov’t officials who already hoped the President will dispense what their districts need.”

At the same time, “[t]his move by the PRRD doesn’t mean he is siding with the Senate,” Mr. Villarin said, using Mr. Duterte’s initials.

“The President is just being (politically and legally) consistent with his promise to the people that, under his watch, corruption such us illegal fund insertions in the national budget (as practiced by previous administrations) will never be tolerated.” — Charmaine A. Tadalan

Work under way to move up Doing Business list

THE PHILIPPINES is targeting an improvement in rank in the World Bank’s annual Doing Business survey to above 95th place by 2020 from 124th out of 190 economies in the 2019 report, as the government said it has been pursuing reforms to improve the regulatory environment for businesses.

Trade Secretary Ramon M. Lopez told reporters on Tuesday the government has now implemented 33 out of 43 reforms designed to further improve ease of doing business in the country.

“We’re happy to note that for this year… we are submitting 43 reform initiatives, and 33 reforms accomplished na. This is again an effort to propel to a much better ranking,” he said as the Quezon City government signed ease of doing business agreements on Tuesday.

These reforms include Republic Act No. 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, RA 11232 or the Revised Corporation Code of the Philippines, and RA 11057 or the Personal Property Security Act of 2018.

Asked about the targeted rank for the Philippines, Mr. Lopez replied: “I would say 90-94 might be a good number; high 80s to 94” explaining that even if just 25-28 of the 33 accomplished reforms will be recognized for the next assessment, that should be enough to push the country above 95th place “na (that was our) best score natin a couple of years ago.”

The World Bank’s Doing Business 2020 report is scheduled to come out in October.

The government of Quezon City — which is used as basis for the Philippines’ doing business rank — signed at the Quezon City hall memoranda of understanding (MoU) with the Land Registration Authority (LRA), Metropolitan Waterworks and Sewerage System (MWSS) as well as water and electricity concessionaires Manila Water Co., Inc.; Maynilad Water Services, Inc. and Manila Electric Co. (Meralco) to simplify processes for registration and permits within the city.

Quezon City Mayor Herbert M. Bautista said the streamlining of processes for construction permits “will make it so much easier for the public to apply for new water connections and for the installation of electric poles.”

The World Bank assesses the doing business competitiveness of countries based on 10 indicators, namely: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.

Mr. Lopez said Quezon City has already been working on five of the criteria, namely: starting a business, dealing with construction permits, getting electricity, registering property and paying taxes.

He said that while all local governments are encouraged to improve their doing business environment in order to encourage entrepreneurs and attract investors, Quezon City took the lead in signing MoUs because it is the Philippines’ benchmark in the World Bank report.

He also noted that since the World Bank survey has been under way for the 2020 report and will enter the validation stage by early May, the recent MoUs in Quezon City may not be taken into account yet.

Pero sabi nga namin [But as we said], the reforms and the momentum should continue, even after the survey… We have to continue the momentum of these reforms so that, by the end of the year moving into next year, mafi-feel na ’yung improvements [you could feel the improvements by then],” Mr. Lopez said. — Denise A. Valdez

JG Summit profit declines 35% amid ‘perfect storm’ in 2018

EARNINGS of JG Summit Holdings, Inc. dropped by 35% last year, amid what its President and Chief Executive Officer Lance Y. Gokongwei called a “perfect storm” of high inflation and oil prices, weak peso, and intense competition.

In a regulatory filing, JG Summit said its net income attributable to equity holders of the parent declined to P19.18 billion in 2018, from P29.36 billion in the year prior, due to “weaker Philippine peso against the US dollar, higher financing costs and market valuation losses on financial assets.”

The Gokongwei family’s holding company said consolidated core net income after taxes fell 24% to P22.40 billion.

“We may say that the group braved a perfect storm in 2018. Our cyclical and food businesses were challenged by high inflation and fuel prices, weaker peso, as well as intense competitive dynamics. We are more optimistic in 2019, but we would remain vigilant of various risks and continue strengthening our diverse strategic business units to ensure balanced sources of profitability,” Mr. Gokongwei said in a statement.

Consolidated revenues went up 6.8% to P291.92 billion, driven by solid sales across all segments from Robinsons Land Corp., growth from Robinsons Bank, as well as strong passenger and cargo revenues from budget carrier Cebu Pacific.

At the same time, consolidated cost of sales and services jumped 13% to P193.59 billion, while operating expenses jumped 5.8% to P53.06 billion.

Financing costs and other charges grew 20% to P9.63 billion from P7.83 billion in the previous year, “due to the higher level of financial debt of the parent company and airline business, as well as net increase in trust receipts of the petrochemical business.”

JG Summit also recognized a net foreign exchange loss of P2.85 billion in 2018 from P902.72 million in the year prior, due to the peso’s depreciation against the US dollar.

By business unit, URC saw revenues rise 2% to P127.76 billion, but reported a 15% drop in net income to P9.2 billion due to “(coffee) volume decline and higher selling and distribution costs in BCF (Branded Consumer Food) Philippines; higher input costs in Flour and Feeds divisions; higher operating expenses and lower selling price in Farms division; and net forex loss from the peso devaluation.”

Cebu Air, Inc., operator of Cebu Pacific, reported its net income fell 50% to P3.92 billion in 2018, mostly due to higher operating expenses as a result of increased fuel prices and the weaker peso against the US dollar.

Cebu Air generated 9% rise in revenues to P74.11 billion last year, as passenger revenues went up 9% to P54.26 billion. This was attributed to the budget carrier’s 5.8% hike in average fares to P2,676 last year.

The airline operator also registered a 119% increase in interest income to P401.62 million. It also incurred a P322.58 million hedging loss, as well as P1.63 billion in net foreign exchange losses. Cebu Pacific said it has started creating natural hedges as part of its forex risk management program.

JG Summit also said its petrochemicals segment recorded “flattish” revenues of P42.35 billion, but costs and expenses went up 17% due to higher naphtha cost. The segment’s net income plunged 82% to P1.05 billion in 2018, as a result of higher interest expense from trust receipts.

Robinsons Land Corp. (RLC) grew its net income by 40% to P8.23 billion in 2018, following a 31% increase in consolidated revenues to P29.44 billion.

RLC attributed its strong sales performance to robust same-mall rental revenue growth, contribution from new malls and cinema box office receipts. “Offices sustained its solid performance on the back of rent escalation and new developments; (while) Residential’s remarkable results were attributable to the successful reorganization, improved product development, influx of demand from overseas buyers and new project launches,” the property developer said.

Robinsons Bank generated P6.13 billion in revenues, up 37% year on year, alongside a 37.5% rise in cost and expenses as it continued to expand. The bank’s net income increased by 3.4% to P317.68 million.

Manila Water accepts COO’s resignation

MANILA WATER Co., Inc. said on Tuesday that it had accepted the resignation of Geodino V. Carpio, its chief operating officer (COO) during the time when the water concessionaire’s customers in Metro Manila’s east zone started experiencing water shortage.

In its disclosure to the stock exchange, the Ayala-led company named Abelardo P. Basilio as acting COO for Manila Water operations.

“The resignation of Mr. Carpio and the appointment of Mr. Basilio will take effect at the close of business hours today (April 16),” the company said.

Manila Water said the 58-year-old Mr. Carpio departed because of “early retirement.” He first faced reporters March 12 to explain the reason for the water woes, which Manila Water said started on March 6.

Mr. Basilio will serve as acting COO concurrently with his roles as group director for strategic asset management and data protection officer.

Manila Water said Mr. Basilio has been with the company for 22 years. He was previously its director of technical services group, group director of the east zone business operations and officer-in-charge head of corporate regulatory affairs group.

“In 1984, Mr. Basilio joined the Metropolitan Waterworks and Sewerage Systems as a young cadet,” the company said, adding that he had gained experience in water utility operations, including hydraulic engineering, water treatment, distribution and network management.

Mr. Basilio has a degree in civil engineering from the University of the Philippines under the university scholarship program. He completed a management development program in Asian Institute of Management, water network design and modelling in Manchester, United Kingdom, and SCADA/Telemetry training in Singapore.

In a text message on April 3, Mr. Carpio said he had been out sick since late March and was thus not updated to answer queries about the company’s water shortage problem.

On March 19, President Rodrigo R. Duterte directed Manila Water and other water stakeholders in a meeting in Malacañang to submit a report explaining the massive water interruption.

Meanwhile, Manila Water reported a 6% increase in its attributable net income to P6.5 billion in 2018, on the back of a 7% jump in revenue from contracts with customers to P19.83 billion. — Victor V. Saulon

Therma Visayas says it starts delivering energy to the grid

THE first 170-megawatt (MW) unit of Therma Visayas, Inc. has started delivering energy to the grid, the company’s parent firm told the stock exchange on Tuesday, adding to much-needed power after the recent supply deficiency problems.

“We are happy to have brought Therma Visayas online just in time to support the government’s call for more reliable energy supply as we head towards the midterm elections,” said Danel C. Aboitiz, president and chief operating officer of Aboitiz Power Corp.’s coal business unit, said in a statement.

The unit’s output, at a net of 150 MW, comes a month before the second 170-MW unit of the coal-fired power plant in Toledo City, Cebu goes online.

“By having a reliable baseload plant on the island of Cebu, the residents and investors on the island will enjoy a number of economic and strategic benefits that include increased energy security, more competitive prices, and local employment,” Mr. Aboitiz said.

The two-unit plant will deliver power to Visayan Electric Co., Inc. and electric cooperatives, as well as to open-access customers in Luzon and the Visayas, the company said.

It added that customers with energy supply contracts could expect stable electricity prices in the long term as they are protected from the volatile prices at the Wholesale Electricity Spot Market.

AboitizPower said the Toledo power plant is using the latest circulating fluidized-bed technology and best available control technology to minimize emissions to world-class levels.

“It is the second plant in the Philippines to build a ‘coal dome’ to safely store its coal fuel and prevent fugitive dust outside the facility,” it said.

The project, a joint venture between AboitizPower and Vivant Corp., started construction in 2015. At its peak, it employed about 5,800 people, mostly from the host community.

Later this year, AboitizPower expects the first unit of its 668-MW GNPower Dinginin Ltd. Co. to also go online. The second unit of the two-unit super-critical coal-fired power plant in Dinginin, Bataan is targeted for commercial operations in 2020.

“Once operational, these facilities will boost AboitizPower’s capacity and help address the country’s rapidly increasing demand for reliable and cost-efficient power,” the listed company said. — Victor V. Saulon

LBC Express nets P1.3B

EARNINGS of LBC Express Holdings, Inc. nearly doubled to P1.36 billion, thanks to the growth of its logistics business and a one-time gain.

The listed firm said in a regulatory filing its attributable net income soared 93.2% last year from P703.88 million in 2017, which it attributed to revenue growth resulting from bigger volumes throughout the year and the “recognition of gain from derivative, amounting to P454.20 million which compensates the loss incurred in 2017.”

Service revenues reached P12.51 billion in 2018, a 25% jump from P10.02 billion the previous year, driven by a robust performance of its logistics segment.

“In 2018, LBC Holdings expanded operations by acquiring one domestic and nine international entities engaged in money remittance and online and regular logistics services. Net contribution to revenue from these business combinations amounted to P889.79 million or 36% of the total increase,” the company said.

Its operations in the Philippines also contributed P123.67 million in total revenues with the opening of 76 new retail branches last year and introduced new products.

The courier recorded a 30% increase in cost of services to P8.56 billion, accounting, mostly for the cost of delivery and remittance as volume of its logistics business grew.

“Direct cost was also significantly affected by the increase in fuel rates, largely due to additional taxes imposed in compliance with the TRAIN Law…. This inclined carriers, mainly outsourced airlines and truckers, to enforce rate increases during the year,” it said.

Operating expenses of LBC also grew 25% to P2.58 billion last year as salaries and wages increased 27% to P134.97 million due to inflation, and its benefit tax rate increased from 32% to 35% due to the Tax Reform for Acceleration and Inclusion (TRAIN) Law. — Denise A. Valdez

Chelsea Logistics slumps to loss due to 2GO, bigger expenses

By Denise A. Valdez, Reporter

CHELSEA Logistics Holdings Corp. (CLC) swung to a net loss last year, dragged by its share in losses in 2GO Group, Inc., bigger expenses, and higher interest rates.

In a regulatory filing, the Dennis A. Uy-led company posted a net loss of P550.53 million for 2018, a reversal of the P161.2- million profit in 2017.

“A significant portion of the net loss reported by the Group can be attributed to its share in net losses of 2GO Group, Inc. amounting to P453 million,” CLC said.

“Excluding this amount, CLC would have reported a net loss of just P98 million, which is primarily due to higher bunkering costs and increased interest rates…,” it added.

CLC saw a 32% increase in its consolidated revenues to P5.17 billion from P3.91 billion in 2017 as all its business segments improved profitability.

But the company’s expenses outpaced its revenue growth, as its cost of sales and services grew 31.2% to P3.75 billion and other operating expenses rose 70% to P900.51 million.

“The increase in Costs of Sales and Services significantly came from larger bunkering costs, crew salaries and employee benefits and supplies,” it said.

“Other Operating Expenses grew…due to increases in salaries and employee benefits, outside services and rentals as a result of the Group’s continued expansion,” it added. CLC said the deployment of additional vessels and higher fuel price last year contributed to the increase in its bunkering costs by 43% to P1.243 billion.

It also spent 145% more for charter hire costs at P240 million. This covered Phoenix Petroleum Philippines, Inc.’s deliveries by Chelsea Shipping Corp. to National Power Corp.’s Malaya power plant.

“The Group had to hire third party vessels as all of its barges are currently covered by a Contract of Affreightment in servicing the bunkering requirements of 2GO,” it said.

Shares in CLC slipped 1.15% or 6 centavos to close at P5.14 each on Tuesday.

Fire guts Notre-Dame Cathedral in Paris

PARIS — A massive fire consumed Notre-Dame Cathedral on Monday, gutting the roof of the Paris landmark and stunning France and the world, though firefighters saved the main bell towers and outer walls from collapse before bringing the blaze under control.

Flames that began in the early evening burst rapidly through the roof of the eight-centuries-old cathedral and engulfed the spire, which toppled, quickly followed by the entire roof.

The fire, after burning for about eight hours, was largely extinguished by 2 a.m. GMT on Tuesday. Earlier, in addition to battling to prevent one of the main bell towers from collapsing, firefighters tried to rescue religious relics and priceless artwork. One firefighter was seriously injured — the only reported casualty.

“The worst has been avoided,” French President Emmanuel Macron told reporters at the scene shortly before midnight.

Mr. Macron said France would launch a campaign to rebuild the cathedral, which is considered to be among the finest examples of French Gothic cathedral architecture, including fund-raising efforts and by appealing to “talents” from overseas to contribute.

“We will rebuild it together. It will undoubtedly be part of French destiny and our project for the years to come,” a visibly moved Mr. Macron said.

The cathedral’s main stone structure had escaped complete destruction by the time the fire came under control.

“We will continue to watch over any residual pockets of fire and cool down the areas that are still red-hot, like the wooden beam framework,” a fire brigade spokesman said in the early hours of Tuesday.

Distraught Parisians and stunned tourists gazed in disbelief as the inferno raged at the cathedral, which sits on the Ile de la Cite, an island in the River Seine and marks the very center of Paris.

Thousands of onlookers lined bridges over the Seine and along its embankments, held at a distance by a police cordon. Some sang liturgical music in harmonies late into the night as they stood vigil, while others recited prayers.

‘A SYMBOL OF FRANCE’
World leaders expressed shock and sent condolences to the French people.

A huge plume of smoke wafted across the city and ash fell over a large area. People watching gasped as the spire folded over onto itself and fell into the inferno.

Firefighters battled smoke and falling drops of molten lead as they tried to rescue some of Notre-Dame’s treasures.

A centuries-old crown of thorns made from reeds and gold and the tunic worn by Saint Louis, a 13th century king of France, were saved, Notre-Dame’s top administrative cleric, Monsignor Patrick Chauvet, said. But firefighters struggled to take down some of the large paintings in time, he said.

The Paris prosecutor’s office said it had launched an inquiry into the fire. Several police sources said they were working on the assumption for now that the fire was accidental.

Mr. Macron canceled an address to the nation that he had been due to give on Monday evening in a bid to answer a wave of street protests that has rocked his presidency. Instead he went to the scene of the blaze with his wife, Brigitte, and some of his ministers. He thanked and congratulated firefighters.

The French Civil Security service, possibly responding to US President Donald Trump’s suggestion that firefighters “act quickly” and employ flying water tankers, said that was not an option as it might destroy the entire building.

German Chancellor Angela Merkel called the cathedral a “symbol of France and our European culture.” British Prime Minister Theresa May said her thoughts were with the French people and emergency services fighting the “terrible blaze.”

The Vatican said the fire at the “symbol of Christianity in France and in the world” had caused shock and sadness and said it was praying for the firefighters.

ARTWORKS RESCUED
The mayor of Paris, Anne Hidalgo, said at the scene that some of many artworks that were in the cathedral had been rescued and were being put in safe storage.

The cathedral, which dates back to the 12th century, features in Victor Hugo’s classic novel The Hunchback of Notre-Dame. It is a UNESCO World Heritage site that attracts millions of tourists every year.

It is a focal point for French Roman Catholics who like Christians around the world are now celebrating Holy Week, marking the death and resurrection of Jesus.

“I have a lot of friends who live abroad and every time they come I tell them to go to Notre-Dame,” said witness Samantha Silva, with tears in her eyes. “I’ve visited it so many times, but it will never be the same. It’s a real symbol of Paris.”

The fire at Notre-Dame has already prompted fund-raising appeals in the United States, while in France the billionaire chief executive of Kering, the luxury group behind brands like Gucci, was quoted in a statement to AFP as saying he would pledge €100 million ($113 million) to rebuilding efforts.

The cathedral, which was built over a century starting in 1163, was in the midst of renovations, with some sections under scaffolding, and bronze statues had been removed last week for works.

Notre-Dame is renowned for its rib vaulting, flying buttresses and stunning stained glass windows, as well as its many carved stone gargoyles.

Its 100-meter-long roof, of which a large section was consumed in the first hour of the blaze, was one of the oldest such structures in Paris, according to the cathedral’s website.

A center of Roman Catholic faith, over the centuries Notre-Dame has also been a target of political upheaval.

It was ransacked by rioting Protestant Huguenots in the 16th century, pillaged during the French Revolution of the 1790s and left in a state of semi-neglect. Hugo’s 1831 work led to revived interest in the cathedral and a major — partly botched — restoration that began in 1844. The wood-and-lead spire was built during that restoration, according to the cathedral’s website.

“I asked our Lord — but why?” Monsignor Patrick Chauvet, the top administrative cleric at Notre-Dame, said at the scene. “It’s terrible to see our cathedral damaged like this.” — Reuters

Phoenix Petroleum sees Tianjin facility as model for LNG import terminal

PHOENIX Petroleum Philippines, Inc. has strengthened its partnership with its Chinese counterpart in the planned liquefied natural gas (LNG) import terminal in Batangas with a visit to a facility in Tianjin, China that can serve as a model for the local project.

In a disclosure to the stock exchange on Tuesday, Phoenix Petroleum said Henry Albert R. Fadullon, its chief operating officer, met with officials of CNOOC Gas and Power Group Co., Ltd. to check the foreign company’s technical expertise and capability in building and running gas plants.

Mr. Fadullon, who was also with Philippine National Oil Co. (PNOC) President and CEO Reuben S. Lista, met CNOOC officials led by Shan Tongwen, the LNG project’s general manager, and Peng Yanjian, its technical director.

On Feb. 28, 2019, Phoenix Petroleum signed a memorandum of understanding (MoU) with state-led PNOC and China’s CNOOC to jointly explore business opportunities in the LNG hub project.

A separate MoU was first forged between the oil company led by Davao City businessman Dennis A. Uy and CNOOC on June 5, 2018 to develop a receiving terminal for imported LNG in the country.

Phoenix Petroleum described CNOOC’s Tianjin LNG terminal as having a storage capacity of 96 million cubic meters. It has three submerged combustion vaporizers and four booster pumps.

“Together with the regasification terminal, the facility also has 31 truck loading skids. At present, the terminal’s gas sendout production has already reached 1,500,000 tons per year and provides 2,500,000 tons per year for truck loading,” it said.

In the Philippines, the three groups signed the MoU after a series of engagement talks that allowed them to explore and discuss business opportunities and cooperation in relation to the equity investment in Tanglawan Philippine LNG Inc., the project entity for the project.

The Tanglawan LNG project will have a regasification and receiving terminal with a capacity of 2.2 metric tons per annum. Its commercial operation is targeted to start by end-2023.

“The facility will help support the demand for a clean, competitive, and environment-friendly energy source in Luzon, and provide energy security for the country. It also aims to develop a gas-fired power generation facility with up to 2,000 megawatts installed capacity,” Phoenix Petroleum said.

On Tuesday, shares in the company slipped 6 centavos or 0.5% to P12 each. — Victor V. Saulon

Notre-Dame Cathedral: 5 facts

NOTRE-DAME Cathedral went up in flames on Monday in a roaring blaze that devastated the Parisian landmark, a searing loss for the city and for France. Here are five facts on the Gothic masterpiece that celebrated its 850th jubilee in 2013:

• The first stone of the Notre-Dame de Paris (Our Lady of Paris) cathedral was laid in 1163 in the reign of Louis VII, as the medieval city of Paris was growing in population and importance, both as a political and economic center of the kingdom of France.

• Construction would continue for much of the next century, with major restoration and additions made in the 17th and 18th century. The stonework and stained glass of the edifice recreate images and lessons from the Bible.

• Dominating the structure are its two 13th century bell towers. The so-called “bourdon,” the largest bell, goes by the name of “Emmanuel.”

• The 387 steps up to the towers take visitors past the gallery of chimeras, mythical creatures typically composed of more than one animal. The most famous of these, the “Stryge” gargoyle sits atop the cathedral watching Paris with its head resting in its hands.

• Victor Hugo used the cathedral as a setting for his 1831 novel, The Hunchback of Notre-Dame. Quasimodo, the main character, is feared by Parisians because of his deformity but finds sanctuary in the cathedral and is employed as a bell-ringer. Quasimodo has been portrayed by Hollywood actors including Charles Laughton and also in an animated Disney adaptation. — Reuters