Philippines Microeconomic Weekly Update #28

MACROECONOMICS WEEKLY UPDATE

President Marcos stated that he does not anticipate a rice crisis in the Philippines, but is not excluding the possibility of importing. The government plans to observe production levels after the most recent planting season since supply may decrease in the upcoming months. The Department of Agriculture has reported that supply is still stable and that there will be a boost in stocks after the March and April harvests.

                                                                                                             

The country’s balance of payments (BoP) surplus reached USD1.3 bn in March, a turnaround from the USD895 mln deficit in February and USD754 mln surplus last year. According to the BSP, the BoP surplus in March reflected inflows from the National Government’s net foreign currency loans deposited with the central bank and net income from investments abroad. For 1Q23, the BoP position stood at a surplus of USD3.5 bn, higher than the USD495 mln surfeit in the prior period. The BSP expects the BoP position to end the year with a USD1.6 bn deficit, narrower than the USD7.3 bn deficit in FY22

INDUSTRY UPDATE

PROPERTY & CONSTRUCTION

EEI Corp. (EEI) reported the sale of the majority of its RE assets to PetroEnergy Resources Corp. (PERC).Following the sale, EEI Power will no longer have any interest in PetroGreen, PetroWind, and PetroSolar. On EEI’s part, proceeds from the transaction will be used to reduce the company’s debt obligations and provide working capital as it gears up for additional construction business in the Philippines and abroad.HOTELS &

HOTELS & GAMING 

Bloomberry (BLOOM) said it is targeting to open Solaire Resort North within 1Q24 after the project was delayed by pandemic lockdowns and supply chain disruptions. The project, which started excavation work in 2019, will be situated on a roughly 16k sqm lot in Vertis North, Quezon City. During the company’s annual stockholder meeting, BLOOM President and Chairman Enrique K. Razon also said that BLOOM’s mass gaming segment is primed to set new highs in 2023 and will continue to contribute to the lion’s share of the group’s revenues.

TELECOMMUNICATIONS 

The Department of Information and Communications Technology (DICT) has extended sim registration by 90 days. Its deadline was originally scheduled for April 26. Public telecommunication entities (PTEs) had requested the extension but the DICT reminded the public that non-registration will result in the deactivation of SIM cards. Failure to register will bar subscribers from using their PTEs’ calling, texting, and digital wallet services. Only 43.2% of the 169 mln subscribers nationwide have registered, based on data. Smart (TEL) has the most registered subscribers with 36.1 mln, followed by Globe (GLO) with 31.6 mln, while Dito Telecommunity (DITO) recorded 5.3 mln registered subscribers.

PLDT (TEL) disclosed that it had assigned officers-in-charge to handle the newly vacated positions from earlier last week. Danny Y. Yu, senior vice president and group controller, will be in charge of the finance department after the early retirement of Annabelle L. Chua who was senior vice president, chief financial officer and chief risk management officer. Meanwhile, first vice president Bernadette C. Salinas will act as head of the supply chain department previously headed by Mary Rose L. Dela Paz. For its network department, TEL assigned first vice president and deputy network head Roderick S. Santiago to be officer-in-charge following the exit of network head Mario G. Tamayo. The changes are expected to induce short-to-medium operational challenges as the new heads adapt to their roles. Nevertheless, the moves are thought to show TEL’s commitment internal restructurings to address weaknesses that led to its budget overrun.

BANKING & FINANCE 

Aboitiz Power (AP) anticipates more renewable energy (RE) projects to be completed this year. The 94MW Cayanga solar project in Pangasinan is expected to commence commercial operations by June, while the 159MW Laoag solar project should be finished by 1Q24. Additionally, the 24MW Magat BESS project is set to begin operation in 1H24. These projects add 277MW of RE capacity, representing 6.8% of AP’s attributable capacity and aligning with AP’s goal of achieving 4,600MW of RE capacity (50% of AP’s total attributable capacity) by 2030.

AC Energy (ACEN) disclosed FY22 net income of Php14.6 bn, up 90% YoY as revenues from the sale of electricity were up 35% to Php35 bn, driven mostly by the contributions of new facilities and higher spot electricity prices. The company ended 2022 with 3.9 gigawatts (GW) in attributable capacity with 98% coming from renewable sources. The company stated that they’re on track to achieve their goal of 20 GWs of capacity by 2030.

 

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