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Martin ‘The Situ-Asian’ Nguyen’s return, Saruta-Pacio rematch headline ONE: Roots of Honor

ONE Featherweight World Champion Martin “The Situ-Asian” Nguyen is coming back, and he’s ready to defend his title in the main event of ONE: Roots of Honor on 12 April at the Mall of Asia Arena in Manila, Philippines. Nguyen will be facing former featherweight kingpin Narantungalag Jadambaa of Mongolia.

Nguyen took over the ONE world in 2017 when he captured a World Championship in both the lightweight and featherweight divisions. He scored exciting one-punch KO wins over Marat Gafarov and Eduard Folayang to earn the belts, and the Vietnamese-Australian martial artist was on top of the world. The year 2018 was a bit more challenging.

Nguyen attempted to drop down to bantamweight to challenge ONE Bantamweight World Champion Bibiano Fernandes. He came up just short when he lost by split decision in March 2018. Nguyen would rebound with a split-decision victory over Christian Lee in a rematch in May 2018, but the Situ-Asian would lose his second bout of the year in July 2018 when he battled Kevin Belingon for the interim bantamweight title.

The quest for unprecedented greatness might have done a number of Nguyen’s body. He suffered an injury that sidelined him for the rest of the year, the entire first quarter of 2019 and forced him to relinquish the lightweight belt. Now that he is fully healthy and still the ONE Featherweight World Champion, he is ready to return to the cage and defend his title.

Jadambaa is a proven ONE veteran who has compiled a 14-5 record, and he’s been in the cage with the best featherweights in the promotion. In fact, Jadambaa has faced and lost to Gafurov twice by rear-naked choke. The first defeat took place in 2015 and the most recent was in 2016. Jadambaa was set to face Tetsuya Yamada in 2017, but the bout was canceled and the Mongolian wound up sitting out the entire year.

However, he did come back strong in 2018. Jadambaa competed twice in less than a month. He defeated Edward Kelly via second-round TKO on 23 June, and then came back on 13 July to defeat Kazuki Tokudome by decision.

Nguyen won’t be the only competitor potentially suffering from cage rust. Jadambaa will have been out of action for nine months when he steps in with Nguyen. It will be interesting to see if either man shows ill effects from their layoff.

In the co-main event, another ONE World Title will be on the line. Reigning champion Yosuke “The Ninja” Saruta will defend his ONE Strawweight World Title in a rematch with the Philippines’ own Joshua “The Passion” Pacio.

In the first meeting, Saruta stepped in as a late replacement for Hayato Suzuki, who had to bow out due to injury. Pacio seemed to be primed for the rematch with Suzuki after he’d lost to the Japanese veteran in their first bout. It’s possible Pacio took Saruta lightly. It’s also possible Saruta was just better on the night the two men initially clashed. Perhaps it was a combination of both.

In any case, Pacio and Saruta will have a rematch with Pacio having an opportunity to avenge the defeat and regain his title, or the current champion can prove the first win was no fluke.

Toronto clips Brooklyn to win 5th straight

LOS ANGELES — Pascal Siakam scored 28 points, Kawhi Leonard added 26 as the Toronto Raptors continued their preparation for the postseason with a 115-105 victory over the host Brooklyn Nets on Wednesday night.

The Raptors (56-23), who will likely be the No. 2 seed in the Eastern Conference, won their fifth straight thanks to their starting frontcourt duo.

Siakam hit 11 of 21 from the floor, including three 3-pointers, grabbed 10 rebounds and handed out five assists. Leonard made 11 of 25 and added nine rebounds as the Raptors won despite shooting 41.9%.

Serge Ibaka tied a career-high with five 3-pointers and contributed 23 points and 12 rebounds off the bench as the Raptors made 15 of 38 (39.5%) 3-pointers and beat the Nets for the 15th time in the last 16 meetings.

The Nets (39-40) lost for the seventh time in 10 games and missed a chance to move into sixth place past Detroit, which lost to Indiana. Instead, the Nets are tied with Orlando for the final two playoff spots in the East — a half-game behind the Pistons — after the Magic defeated the Knicks Wednesday and Miami fell to Boston.

D’Angelo Russell led the Nets with 27 points and scored 18 in the fourth when the Nets tried to mount a late charge. Spencer Dinwiddie added 14 for Brooklyn, which committed 14 turnovers, shot 47.7% and took 19 fewer shots than Toronto.

The Nets trailed 90-78 entering the fourth and made their charge early in the quarter.

Russell scored nine straight Brooklyn points and Allen converted a putback with 6:41 remaining to get the Nets within 96-91. Nearly three minutes later, the Raptors restored their double-digit lead at 107-96 on two free throws by Ibaka.

The Nets continued to be within striking distance and were within 110-105 when Russell made a difficult 3-pointer from the top of the key while shaking off contact with 84 seconds left. On Toronto’s next trip, Siakam missed a short jumper and Ibaka converted the putback with 1:12 left.

The Nets still had chances in the final minute but Russell and Joe Harris missed 3-point attempts. Following an offensive foul by Leonard, the Nets had another chance but Fred VanVleet stripped Russell before the midcourt line with 35.9 seconds left and Toronto iced the game at the line.

Toronto missed 10 of its first 11 shots but recovered to take a 34-22 lead after the opening quarter when Ibaka hit a buzzer-beating 3-pointer from the corner. The Raptors took a 13-point lead midway through the second and held a 57-50 lead at halftime.

COLLINS, YOUNG LEAD HAWKS PAST SIXERS AGAIN
Trae Young and John Collins combined to score 58 points and the Atlanta Hawks knocked off visiting Philadelphia 130-122 on Wednesday, their third straight victory over the 76ers.

Young scored 33 points, including a 3-pointer with 1:32 that allowed Atlanta to stretch its dwindling lead back to eight points.

Philadelphia missed a great opportunity with 32.5 seconds left when Jimmy Butler drew a flagrant-one foul. Butler missed both free throws and a 3-pointer when play resumed as Philadelphia could not cut into Atlanta’s five-point lead. The Hawks put it away when Young made a pair of free throws with 20.3 seconds remaining.

Collins scored 25 points and had eight rebounds, the final one after Butler’s miss. Young was 12-for-18 from the floor, 7-for-7 from the free-throw line, and added 12 assists and seven rebounds.

Atlanta (29-50) took three of four games from the Sixers this season. The Hawks also got 17 points from DeAndre’ Bembry and 15 points from Kevin Huerter. Taurean Prince returned from a foot injury and scored 13.

Philadelphia (49-29) was led by JJ Redick with 30 points. He made six 3-pointers, but uncharacteristically missed three free throws. The Sixers also got 21 points from Tobias Harris, 16 points from Butler, and 15 points and 15 rebounds from Ben Simmons.

The first quarter set the pattern for the game. There were eight ties and 17 lead changes, with neither team leading by more than four points and Atlanta holding a 42-38 lead when the period was over. — Reuters

NBA video recaps can be seen on Facebook Watch

NBA logo

FILIPINO National Basketball Association fans out to have their steady stream of league news and features, more so as the ongoing season hits the playoffs, may get them via Facebook Watch.

NBA Digital, which is being jointly managed by the NBA and Turner Sports, recently announced the league’s availability on Facebook Watch, which will carry video recaps spanning every game during the season, including the Summer League, preseason and playoffs.

Also, the NBA is set to host weekly watch party over the platform, allowing fans around the world to watch and interact with game recaps and videos together in real-time.

The NBA said this latest offering is in line with its push of catering to the needs of the modern NBA fans, including fans from the Philippines, who help the country become the no. 1 nation outside of the United States with the most followers on NBA’s Facebook page with more than 7.3 million followers and the largest regional NBA Facebook page with over 3.5 million fans.

“We are excited to provide our millions of followers on Facebook with recaps to every game across all four of our leagues,” said Sam Farber, NBA Vice-President, Digital Media, in announcing Facebook Watch.

“Through Facebook’s innovative Watch Party experience, basketball fans around the world can interact in real-time and share in their passion for the game,” he added.

“We’re thrilled for Facebook Watch to now be a place where basketball fans can come together to get caught up on and debate the latest action from each of the NBA’s four leagues,” said Devi Mahadevia, Facebook North America Sports Programming Lead, on their part.

Adding, “The NBA boasts one of the most vibrant sports communities on our platform — and by delivering these game recaps and hosting a weekly Watch Party, the league will be able to engage with fans around the world in new and exciting ways.”

Aside from the NBA, Facebook Watch will also carry WNBA, NBA G League and NBA 2K League video recaps and watch parties.

Facebook Watch is available for free on mobile apps across Apple and Android, on desktop, laptop and on TV apps. — Michael Angelo S. Murillo

Offseason buildup

Notwithstanding the impression it created, Lakers owner Jeanie Buss’ refusal to reply to a public query on the fate of head coach Luke Walton was more a good reflection of her trust in president Magic Johnson than anything else. “I’m not going to give you the answer to that question,” she said while guesting on the Sports Business Radio Road Show yesterday. Lest her noncommittal remark be construed as a vote of no confidence, however, she took pains to praise the embattled bench tactician for doing his best through a spate of injuries that included a long absence by the lone All-Star LeBron James.

“I think [Walton] has done a terrific job,” Buss said. “I think he is a hard worker, and he is somebody that players gravitate towards, and he’s, I think, done an incredible job under a lot of challenging circumstances.” And she’s right. Prior to James being sidelined during a Christmas Day match that resulted in a victory against the powerhouse Warriors, the Lakers were fourth in the West and seemingly en route to breaking their embarrassing record of five straight seasons out of the playoffs. When he came back, they were already on the outside looking in and slated to embark on a finishing schedule deemed among the hardest in the league.

Parenthetically, Buss noted that “in terms of basketball decisions, I will always defer to Magic. He’s brought a vision of the kind of team we’re going to build and a vision of what Lakers basketball is going to be. And I think you can see that. But we’re still building that roster that will get us there.” Ironically, the goal of improving the talent base may well have been a contributing factor to the malaise that engulfed the purple and gold heading into the trade deadline. In a bid to acquire perennial Most Valuable Player candidate Anthony Davis, Johnson and general manager Rob Pelinka made available to the Pelicans just about every player not named James, leading to bruised egos when the sought-after deal fell through.

Given Buss’ pronouncements, one thing’s clear: Walton moving forward or moving on will depend on Johnson. And it bears pointing out that he’s a hire of the previous dispensation. Interestingly, his retention has been pegged as having roughly the same odds as the appointment of former Cavaliers mentor Tyronn Lue. In the end, though, the Lakers’ progress will depend more on the personnel they have. As Buss disclosed, they have “everything plotted out … This will be an important offseason for us in regards to that plan.” Indeed.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994.

ADB, S&P temper PHL growth forecasts

By Melissa Luz T. Lopez
Senior Reporter

THE PHILIPPINE ECONOMY will likely grow faster this year with household and state spending on the rise, the Asian Development Bank (ADB) and global debt watcher S&P Global Ratings said in separate reports released on Wednesday, even as global uncertainties have prompted them to slash growth projections for the country and for Asia Pacific in general.

In its Asian Development Outlook report, the regional lender said gross domestic product (GDP) will grow 6.4% this year, faster than 2018’s 6.2% albeit below the 6.7% estimate it gave in December. The lower forecast factors in a global slump that will hurt the country’s export of goods, as well as a brewing dry spell that could weigh on farm output.

Despite this, the Philippines is one of the three Southeast Asian states where growth is seen picking up from 2018, alongside Brunei and Myanmar. In Southeast Asia, the Philippines will be outpaced by Cambodia, Laos, Myanmar and Vietnam.

“There are two reasons: (the Philippines) is less vulnerable to a sharp slowdown in exports. The second is public spending on infrastructure… It has a major infrastructure spending program that’s keeping economic growth well above the other neighboring countries,” ADB country director Kelly Bird said in a press briefing.

Despite dimmer global prospects that could “moderate” growth in exports, Mr. Bird added that the Philippines remains on a “very healthy” growth path that can be sustained over the next few years. The steadily growing business process outsourcing sector as well as strong remittance inflows are seen to cushion weaker trade in goods.

ADB’s Philippine growth outlook for this year will outpace the 5.7% average for “developing Asia,” which expanded by 5.9% in 2018.

Philippine GDP growth is seen at 6.4% next year.

In its report, S&P likewise scaled down its growth forecast for the Philippines further to 6.3% from 6.4% previously. Philippine growth will pick up to 6.5%, 6.6% and then to 6.7% from next year to 2022.

The Philippines 2019 projection compares to S&P’s 5.2% forecast for Asia-Pacific growth this year from an initial 5.3%, compared to an actual 5.4% expansion in 2018. Southeast Asia will grow by 4.9% this year from five percent in 2018, five percent next year and 5.1% each in 2021 and 2022.

The credit rater said weaker global demand for electronics exports, as well as higher borrowing costs due to the central bank’s rate hikes in 2018, will dampen domestic demand.

These changes match the World Bank’s revision of Philippine growth prospects to 6.4% from an earlier 6.5% projection.

RISKS AHEAD
For the ADB, continued trade tensions between the United States and China remain the key risk to growth, coupled with uncertain policies and financial volatility amid a delayed Brexit as well as policy moves of the Federal Reserve.

Back home, an El Niño-induced dry spell as well as the delayed enactment of the 2019 national budget could stand in the way of faster expansion. Mr. Bird said the government will likely play catch up with its infrastructure spending plans, as seen through bigger state spending February despite the delayed budget.

“That tells me that they are implementing programs and projects now. They know what they are going to spend on. Once the budget is approved, I think that risk will disappear,” Mr. Bird added, noting that the government has the fiscal space to pour more funds into infrastructure given its declining debt burden.

Lower inflation — which the ADB expects to settle at 3.8% this year versus 5.2% in 2018 — should also help lift private consumption, together with improving business and consumer sentiment.

The Philippines is also seen to enjoy a lift from a sound macroeconomic environment, fortified by “very proactive” reforms enacted the past year. In particular, the ADB cited the updated central bank charter, the law shifting to a tariff scheme for rice from previous quantitative restrictions, and Corporation Code amendments as landmark measures.

The regional lender emphasized the need to focus on farm productivity and rural development, as well as on investing on disaster resilience and insurance versus climate change-related risks.

ADB data showed that 84% of people affected by natural disasters are in Asia, hence, the need to focus on climate-friendly and disaster-resilient structures to reduce future losses of lives and property. The Philippines is one of 20 countries considered most vulnerable to natural disasters and climate change. The Finance department has said that more than 1,000 deaths occur yearly in the country due to natural calamities, with typhoons accounting for 74% of lives lost, 62% of damage to properties and 70% of damage to agriculture.

IMF’s Lagarde says global growth loses momentum amid trade tensions

WASHINGTON — International Monetary Fund (IMF) Managing Director Christine Lagarde said on Tuesday that global growth has lost momentum amid rising trade tensions and tighter financial conditions, but pauses in rate hikes will help boost activity in the second half of 2019.

Ms. Lagarde, in a preview of the April 12-14 IMF and World Bank Spring Meetings, said the global economy is “unsettled” after two years of steady growth, with the outlook “precarious” and vulnerable to trade, Brexit and financial market shocks.

In January, the IMF cut its global growth forecast for 2019 to 3.5% from 3.7%, and Ms. Lagarde signaled further cuts when the IMF releases new forecasts next week.

“We had this synchronized acceleration of growth a couple of years ago. Now it is synchronized deceleration and a slowing momentum across the spectrum,” Ms. Lagarde said in a panel discussion at the US Chamber of Commerce headquarters in Washington.

Ms. Lagarde said that the IMF does not anticipate a recession in the near term, and the Federal Reserve’s “more patient pace of monetary policy normalization” will help fuel growth in the second half of 2019 and into 2020.

She cautioned, however, that years of high public debt and low interest rates since the financial crisis a decade ago have left limited room in many countries to act when the next downturn arrives so countries need to make smarter use of fiscal policy.

This, Ms. Lagarde said, means striking a better balance between growth, debt sustainability and social objectives and acting to address growing inequality by building stronger social safety nets.

She previewed new IMF research to be released on Wednesday showing that rising trade tensions and tariffs were hurting investment in plant, machinery and job creating projects.

Other IMF research will show that rising market power among some technology firms was leading to price markups in a “winner takes most” dynamic that she said requires more effective policies to foster innovation and ensure fair competition.

Ms. Lagarde also said that the IMF has revised its analysis of the US-China trade war’s impacts, showing that if all trade between the world’s two largest economies were subjected to a 25% tariff, US gross domestic product would fall by up to 0.6% while China’s GDP would fall by up to 1.5%.

US President Donald Trump has threatened to subject all imports from China to a 25% tariff if the two sides cannot resolve their disputes in negotiations. Chinese Vice-Premier Liu He was due in Washington for another round of talks starting on Wednesday.

“Nobody wins a trade war,” Ms. Lagarde added. “That is why we need to work together to reduce trade barriers and modernize the global trade system.” — Reuters

Watchdog drafts rules for faster M&A review

THE PHILIPPINE Competition Commission (PCC) has drafted rules for faster review of mergers and acquisitions (M&A) deals that are relatively simple or have little local impact.

PCC, which is asking for public comments on the draft until April 10 and aims to finalize the guidelines by June, on Wednesday issued the draft rules on expedited merger review.

Among others, the draft said qualified transactions will be reviewed within 15 days from the PCC’s receipt of notification and supporting documents, compared to 30-90 days for regular reviews.

“The context is clearly based on experiences so far. There are certain transactions that can easily be classified as easy cases from the point of view of the Mergers and Acquisitions [Office],” PCC Chairman Arsenio M. Balisacan said in a telephone interview.

The draft enumerated five traits that could qualify M&As for the expedited review, namely:

• there are no horizontal or vertical relationships between the acquiring and acquired entities;

• the merger is a global transaction wherein the acquired and the acquiring entities are foreign and their subsidiaries in the Philippines are merely manufacturers or assemblers of products which are all exported;

• the merger is global, and the acquiring and acquired entities have limited Philippine presence;

• the merger will result in the acquiring entity getting sole control over an entity over which it has joint control, provided the former is not operating in any other market except the one in which the joint venture operates;

• and joint ventures formed purely for construction and development of a residential or commercial real property project.

“These Rules on Expedited Merger Review may be revised or amended from time to time,” the draft read.

As of April 1, PCC had received 178 transactions worth P2.82 trillion. Of this complement, 116 deals had been approved by then. — Janina C. Lim

Philippine steel use seen at record high

STEEL CONSUMPTION in the Philippines is likely to rise by 5-6% this year to a record 11.1 million tons as the country’s economy continues to grow, the head of an industry group told Reuters on Monday.

After rising just two percent in 2017 due to high prices, the nation’s steel consumption jumped about 9% last year to a record 10.5 million tons, driven by public and private construction projects, Roberto M. Cola, president of the Philippine Iron and Steel Institute, said in an interview.

The Philippines imports about 70% of its steel, with half of that coming from the world’s top producer and exporter China.

Domestic steel demand will be supported in the next few years by President Rodrigo R. Duterte’s “Build, Build, Build” infrastructure program, under which the country is set to build more roads, bridges, railways and airports and upgrade existing ones.

“(Steel demand) will track GDP growth,” said Mr. Cola, who is also vice-president at Steel Asia Manufacturing Corp., one of the Philippines’ top steelmakers.

The government is targeting 6-7% gross domestic product growth this year.

China’s steel shipments to the Philippines last year accounted for seven percent of its total steel exports at 66.9 million tons. About a third of China’s steel exports go to Southeast Asian nations, according to data from the US Department of Commerce.

Mr. Cola said the country’s heavy dependence on steel imports would drop significantly if the Philippines’ first integrated steel complex — a $4.4 billion project by China’s second-biggest steelmaker, HBIS Group, and three other parties including Steel Asia — begins production.

However, that project in the southern Philippines, with a planned capacity of 8 million tons per year, is undergoing feasibility studies, with no definite timeline yet for its completion, he said.

HBIS, based in China’s biggest steel province of Hebei, has been forced to look for overseas opportunities to boost production as the Chinese government seeks to reduce the country’s steelmaking overcapacity.

As its demand for steel has risen, the Philippines has seen an influx of induction furnaces which were banned in China but made their way to parts of Southeast Asia, hitting domestic steelmakers and fueling safety and environmental concerns.

“That is half of the market,” Mr. Cola said, referring to substandard steel products produced by such equipment in the Philippines. “I don’t know if the government is still monitoring them.” — Reuters

Cemex PHL eyes stock rights offer

By Arra B. Francia, Reporter

CEMEX Holdings Philippines, Inc. (CHP) plans to more than triple its authorized capital stock as part of efforts to raise up to $250 million through a potential stock rights offering.

In a disclosure to the stock exchange on Wednesday, the listed cement manufacturer said its board of directors has approved the increase of its authorized capital stock to P18,310,395,454, consisting of 18,310,395,454 common shares with a par value of P1 per share.

The company’s authorized capital stock currently stands at about P5.195 billion divided into around 5.195 billion common shares at P1 each.

“The rationale for the amendment is for the ability to raise equity capital including, but not limited to, a rights offering, that the corporation may undertake, subject to the final decision and approval of the board of directors,” the company said.

Investors reacted negatively to CHP’s planned offering, prompting a 15.04% drop in its shares to P2.26 each at the stock exchange after Wednesday trading.

Sought for comment, Timson Securities, Inc. Trader Jervin S. De Celis said the offering will have a dilutive effect on current shareholders.

“(T)he company stated that in the future they might offer stock rights but since no additional details have been disclosed, it somewhat scared investors urging them to sell heavily today,” Mr. De Celis said in a mobile message.

Mr. De Celis noted that investors decided to sell their holdings in the firm as its share price has been struggling to rise above P2.90 in previous sessions.

“The sell-off today could not be just a knee-jerk reaction…when the short-term support levels at P2.50 and P2.40 were broken, investors with large number of shares raced to liquidate their positions,” he said.

CHP is looking to raise up to $250 million to improve its capital structure and provide flexibility in its balance sheet. The funds will also support the company’s expansion of its Solid Cement plant in Antipolo, Rizal.

Worth about $235 million, the expansion will add 1.5 million metric tons (MT) a year to Solid Cement’s current capacity of 1.9 million MT. This will increase CHP’s overall capacity by 26%.

In a presentation posted on its website in February, CHP said it has already invested $64 million for Solid Cement plant’s expansion, $39 million of which are advances that will be capitalized in 2019 and 2020.

The company expects the new product line to start operation by the fourth quarter of 2020, which will serve the cement requirements of the National Capital Region and Southern Luzon. It has recently secured approval form the Board of Investments for the new line, which entitles it to tax incentives during the first few years of operations.

CHP booked a consolidated net loss of P930 million in 2018, compared to a net income of P659 million in 2017, weighed down by the landslide in Naga City which affected its supplier of raw materials. The company was further affected by higher foreign exchange losses and higher income tax expenses.

The net loss came amid a seven percent increase in net sales to P23.42 billion, driven by residential construction due to the high demand from overseas Filipino workers, foreign investors, and outsourcing and offshoring companies.

CHP is the local unit of Mexican cement and construction materials company Cemex S.A.B. de C.V. Its cement products are sold under three brands, namely Island and Rizal for Luzon, and APO for the Visayas and Mindanao.

Firm proposes new water source for Metro Manila

By Victor V. Saulon, Sub-Editor

A JOINT venture company is proposing to build an impounding basin costing P9-10 billion that will catch the unused water from Angat and Bustos dams in Bulacan and convey it through a tunnel and deliver up to 800 million liters per day (MLD) to the water concessionaires.

“We’ll submit through a consortium an unsolicited proposal to the government, which is under BOT (build-operate-transfer),” said Orville M. Roque, president of the joint venture ITP-Maharlika Bulk Water Co. in a briefing on Wednesday.

“What we need really is an impounding area,” he said, adding that by the end of April his group would have been able to finish its proposal for submission to the Metropolitan Waterworks and Sewerage System (MWSS).

He said the project targets to supply the government, through MWSS, about 800 MLD. It will have two segments. The “low” dam will impound the water that flows from Angat Dam to Ipo Dam, and the Angat hydroelectric power plant, from which the National Irrigation Administration (NIA) gets it water for farming.

Mr. Roque said on average, of the 1,800 MLD that flows to NIA, only 600 MLD goes to irrigate farmlands, while the rest or 1,200 MLD is not used and wasted. He said the joint venture’s proposal plans to put a dam and impounding basins to optimize the wasted water.

The water will be conveyed to the concessionaires to a 5-kilometer tunnel with a 2.5-meter diameter.

“It will be subject to Swiss challenge,” Mr. Roque said, referring to the process that seeks challengers with a better offer and a chance for the original proponent to match the counter-offer.

He said the first segment of the project, which targets to deliver 250 MLD, could be completed in two years from its expected approval from relevant government agencies by June 2020. The joint venture expects to earn from the water sold to concessionaires Manila Water Co., Inc. and Maynilad Water Services, Inc.

“Pipilitan naming matapos ng June of 2022 ’yung first segment,” Mr. Roque said.

Mr. Roque said the joint venture plans to source funding through internal equity and from multilateral lending agencies. He said the second segment is targeted to be completed by 2025.

MWSS Administrator Reynaldo V. Velasco said the proposal had been approved in principle by the agency.

“The board has given the go-signal to do the feasibility study,” he said, adding that the output will be presented to the MWSS board for final approval.

“If there is no challenger, they will proceed,” he said.

Shakey’s earnings rise 10% as it opens 20 stores in 2018

SHAKEY’S PIZZA Asia Ventures, Inc. (SPAVI) grew its net income by 10% in 2018, as new stores helped lift sales amid weak consumer sentiment.

In a statement issued Wednesday, the listed chain of full-service restaurants said unaudited earnings stood at P843 million last year.

System-wide sales, which take into account sales from both company-owned and franchised stores, rose 12% to P9.36 billion, thanks to the opening of 20 new stores in the country. Same-store sales growth stood at four percent, within the firm’s annual three to five percent target.

“The sustainability of our expansion is a commendable feat by all measures. Last year, however, was especially challenging given the headwinds in consumer spending and the continued entry of new competitors in the dining out space,” SPAVI President and Chief Executive Officer Vicente L. Gregorio said in a statement.

Meanwhile, revenues hit P7.58 billion, eight percent higher year on year. The company, however, noted that gross profit posted slower growth at four percent to P2.16 billion, causing a 100-basis-point decline in gross profit margins to 28.5%.

SPAVI attributed the lower margins to higher raw material prices given elevated inflation last year, accompanied by the weaker peso.

“The good news is we saw profit improvements during the last quarter despite compression in our margins for most of the year. Towards yearend, we benefitted from the softening of certain raw material prices, which were then supported by more judicious promotional spending and the operating leverage brought about by seasonality,” Mr. Gregorio said.

SPAVI remains upbeat for its business prospects this year, as it plans to open 20 new stores in the Philippines, which will bring its year-end store count to 248. It also has at least 20 outlets in the pipeline for overseas expansion, since it holds the perpetual rights to the Shakey’s brand in the Middle East, Asia excluding Japan and Malaysia, China, Australia, and Oceania.

The company has recently added a new brand to its portfolio following the acquisition of Peri-Peri Charcoal Chicken from iFoods Group, Inc. The fast casual restaurant chain has 23 outlets, 60% of which are franchised while 40% are company-owned.

“We are excited about 2019 amidst today’s dynamic restaurant landscape. In this environment, we will intensify further our efforts to improve the effectiveness and efficiency of our operations, focusing primarily on superior execution this year,” Mr. Gregorio said.

Shares in SPAVI jumped 4.61% or 56 centavos to close at P12.70 each at the stock exchange on Wednesday. — Arra B. Francia

Portion of C5 South Link on track for June opening

THE segment of C5 South Link Expressway connecting the C5 road to Merville in Parañaque City is on track to open in June, the Department of Public Works and Highways (DPWH) said.

After an inspection of the toll road on Wednesday, DPWH Secretary Mark A. Villar said the 2-kilometer Segment 3A-1 is now 87% complete. The project is expected to be finished soon, according to private concessionaire Cavitex Infrastructure Corp. (CIC)’s target of completing it on June 15.

“Ito, we’re expecting June. Kaya sa mga final inspections, kita niyo halos finishing touches na lang [This one, we’re expecting (to open) in June. That’s why you’ll see in the final inspections, only the finishing touches are being done],” he said.

The P10-billion project aims to build a 7.7-kilometer expressway that will link Taguig to Parañaque, Las Piñas and Cavite through the Manila-Cavite Expressway (CAVITEx). Once the whole C5 South Link alignment opens in 2020, it is seen reducing traffic to 30 minutes from the usual one hour.

“The C5 South Link Expressway will soon benefit motorists coming from Cavite, Las Piñas and parts of Parañaque by having a direct access to and from C5-Taguig. When it connects to CAVITEx, it will eventually provide a seamless connection to the 45-kilometer Cavite-Laguna Expressway (CALAX) which is also under construction,” CIC President and General Manager Roberto V. Bontia said.

CIC is part of Metro Pacific Tollways Corp., the tollways unit of Metro Pacific Investments Corp. (MPIC).

MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

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