Pandemic-induced debt growth may have peaked already — Dominguez

The pandemic-induced rise of government debts likely hit its peak already, and a return to pre-crisis fiscal health could happen late next year, Finance Secretary Carlos Dominguez III said Wednesday......»»

Category: financeSource: philstar philstarJul 21st, 2021

Shell widens losses to P13.9-B in 9 months; P1B investment set for import facility

With additional valuation-anchored inventory losses and one-off charges booked, the net loss of listed firm Pilipinas Shell Petroleum Corporation (PSPC) had widened to P13.9 billion in nine months this year. That’s a complete reversal of the P4.4 billion net income it posted last year, when oil prices were at more predictable state and there had been no pandemic-induced uncertainties disrupting oil markets. It specified that if the P5.7 billion inventory valuation losses had not turned up, the company’s net loss in the third quarter should have been at leaner P700 million versus P900 million in the second quarter. And without the one-off charges that stood at P7.5 billion, the oil firm’s net loss should have been trimmed to P6.4 billion within the January-September stretch. The one-off charges came about because of the closure of its refining operations that subsequently prompted the conversion of its Tabangao facility into a world-class import terminal. But while the company works on improving its financial performance in the coming months, Pilipinas Shell President and CEO Cesar G. Romero announced that they will be re-investing roughly P1.0 billion in the next few years “to fully transform Tabangao into a world class facility that will support its marketing growth aspirations.” Part of the company’s major step this year is to set on stream the commercial operations of its 54-million liter capacity terminal in Subic to underpin its supply chain, primarily to serve the demand of its Northern Luzon customers; while its Tabangao import facility will cater to the needs of customers in other parts of Luzon and Northern Visayas. To complete the loop, its Northern Mindanao Import Facility (NMIF) in Cagayan de Oro will be supporting the rest of Visayas and well as customers in Mindanao. Pilipinas Shell said it now “has a more resilient network of three medium-range import terminals with sufficient finished products capacity to effectively serve the demands of customers nationwide.” The firm indicated that despite the challenges, it prioritized business strategies that shall result in cash preservation for the company. As of third quarter’s end, the savings logged by the company stood at P2.5 billion; and this is seen sustained at the level of P2.0 billion until the end of this year. “Savings of P1.2 billion were generated from OPEX (operating expenses); with P1.3 billion from CAPEX (capital expenditure),” Shell emphasized. While the company still navigates the tough terrain of business induced by the coronavirus pandemic, Romero asserted their overall frame “remains optimistic,” as he noted that the “government’s efforts to gradually reopen the economy by prudently relaxing quarantine restrictions are slowly giving elbow room for the economy to recover.” He specified that for Shell, “the wins are coming in gradually as more businesses operate at increased capacity in the areas of manufacturing and transportation.” The company chief executive expounded “our balance sheet, technical capability and resources are solid; and serve as well in continuing to provide Filipinos with high quality fuel products despite the challenging environment.” Parallel to the firm’s aspirations for demand and financial rebound, Romero noted they are also making “the right sustainable decision to protect the long-term interests of our shareholders.” The company’s gearing had risen to 47-percent, and that was mainly attributed to “lower equity from net loss rather than an increase in net debt,” with it emphasizing that “excluding the impact of the refinery one-off charges, the company’s gearing stands at 41-percent.” Romero indicated “the pandemic has forced us to rethink the way we do things, while ensuring the quality of service that Filipinos expect from us.”.....»»

Category: newsSource: NewsNov 12th, 2020

Gov’t pushes digitalized, mechanized farm sector

The Department of Finance (DOF) said the government is rapidly digitalizing the country’s agricultural systems and mechanizing farm production to ensure food security over the long run. During the virtual 2020 Annual Meetings of the International Monetary Fund and the World Bank Group, Finance Secretary Carlos G. Dominguez III said the government wants to turn the coronavirus-induced health emergency into an opportunity. Finance Secretary Carlos G. Dominguez III (MANILA BULLETIN FILE PHOTO) To do so, Dominguez said efforts to implement the twin measures are being done to expand Filipinos’ market access for food producers while keeping food supply available and prices affordable. “We are confident that the innovative measures we are putting in place today will transform Philippine agriculture into a dynamic, high-growth sector that will fuel our country’s strong recovery,” Dominguez said during the high-level Food Security Roundtable at the meeting. Dominguez said the government is also promoting digital marketing to support ongoing efforts to boost consumer spending in the new normal and sustaining public investments in rural infrastructure. He added that the government is accelerating the move towards agricultural technology-based farming and value chain development to ensure long-term food security.  To channel more funds into the agriculture sector, the government is also encouraging more private-sector financing in the sector by proposing reforms in the Congress that will provide more access to credit for the entire agricultural value chain, Dominguez said.   “We all aspire for greater food and nutrition security for our people. Only an efficient and modern agriculture sector can fully deliver that,” Dominguez, who was Agriculture secretary during the administration of the late President Corazon Aquino, said. Amid pandemic, Dominguez III said the Philippines has been handling the COVID-19 crisis “with strength on the food security front” duets reforms, particularly with the passage of the Rice Tariffication Law (RTL). According to Dominguez, the agriculture sector was “one of the brightest spots” of the Philippines’s response to the pandemic owing in large part to the RTL. He pointed out that agriculture sector even continued to grow when the rest of the economy contracted because of the COVID-19 pandemic.  Dominguez said rice tariffication was among the main reasons why the government has succeeded in keeping food prices and supply stable, and inflation low during the COVID-19 emergency.  Keeping rice prices stable has been helpful for low-income households that spend a fifth of their budgets on rice alone, he added.   “The Philippines faced the COVID-19 pandemic with strength on the food security front,” Dominguez said.  He pointed out that despite logistical restrictions resulting from the lockdowns imposed to protect people and communities from the lethal coronavirus, the government was able to sustain the flow of produce from local farms to Filipino consumers.   “A food crisis did not happen. This is credited to the effective management of the food supply by our Agriculture Department,” Dominguez said......»»

Category: newsSource: NewsNov 8th, 2020

Double-digit credit growth seen in 2 years

Philippine banks are expecting double-digit credit growth over the next two years on the back of higher loan demand amid improving business and consumer confidence as the country recovers from the pandemic-induced recession......»»

Category: financeSource:  philstarRelated NewsJul 25th, 2021

Low base boosts June car sales to 4-month high

Car sales soared to a 4-month high in June to post another double-digit growth, as low base effects from last year’s pandemic-induced slump continued to bloat the figures......»»

Category: newsSource:  philstarRelated NewsJul 13th, 2021

Fitch revises Philippines outlook to negative

New York-based Fitch Ratings has lowered its outlook for the Philippines to negative from stable as it expects a slower recovery for the country from the pandemic-induced recession with a gross domestic product growth of five percent instead of 6.3 percent this year......»»

Category: newsSource:  philstarRelated NewsJul 13th, 2021

FDIs clock triple-digit growth in April on low base

Foreign direct investments to the Philippines posted another month of triple-digit growth in April, with much of the lift coming from base effects from last year’s pandemic-induced slump......»»

Category: financeSource:  philstarRelated NewsJul 12th, 2021

Bank lending growth hinges on recovery, vaccine rollout

The reversal of the continued drop in loan disbursements by big banks hinges on faster recovery from the pandemic-induced recession and the rollout of COVID-19 vaccines, according to Bangko Sentral ng Pilipinas Governor Benjamin Diokno......»»

Category: financeSource:  philstarRelated NewsJun 21st, 2021

Think tank cuts Philippine growth forecast

Barcelona-based think tank FocusEconomics expects a slower recovery for the Philippines as the pandemic-induced recession stretched for the fifth straight quarter with a worse-than-expected gross domestic product contraction of 4.2 percent in the first quarter......»»

Category: financeSource:  philstarRelated NewsMay 24th, 2021

EastWest profits down a tenth on pandemic woes

Anemic credit growth as a result of a pandemic-induced economic meltdown weighed on Gotianun-led East West Banking Corp.’s bottom-line numbers in the first quarter, reflecting a broader struggle of the local banking industry......»»

Category: financeSource:  philstarRelated NewsMay 20th, 2021

ING sees strong Q2 GDP rebound

Dutch financial giant ING Bank said the Philippines is in for a strong bounceback with a double-digit growth in the second quarter, ending five quarters of contraction brought about by the pandemic-induced recession......»»

Category: financeSource:  philstarRelated NewsFeb 15th, 2021

Growth prospects of Cebu property market

The Cebu property market has been affected by pandemic-induced disruptions to the country’s economy. Office leasing here, for instance, remains challenging while the launches and take up of residential units were down as of the first nine months of 2020. However, we see some positive developments including the government’s anti- COVID-19 efforts, and we are […] The post Growth prospects of Cebu property market appeared first on Cebu Daily News......»»

Category: newsSource:  inquirerRelated NewsJan 30th, 2021

Exports growth begins a slow trade revival in September

Exports returned to growth in September but a downtrend in imports persisted, albeit at a slower pace, reflecting an economy that is slowly coming out  a pandemic-induced shock......»»

Category: financeSource:  philstarRelated NewsNov 4th, 2020

Economic recovery takes ‘one step back’

The Philippine economic recovery is taking a step back to curb the surging coronavirus outbreak and fix the fragile health system waging a “losing battle” against the pandemic. Finance Secretary Carlos G. Dominguez III said yesterday that the return of Metro Manila and nearly provinces to a stricter lockdown may take a toll on the drivers of economic rebound in the near-term. But Dominguez said that if the reimposed stricter modified enhanced community quarantine (MECQ) is correctly implemented, it will have a favorable impact on the nation’s long-term economic prospects. “In the short run, the return to MECQ may negatively affect livelihoods, consumer demand and production. However, if the time is used to boost all our medical resources and prevent further spread of the virus, then the MECQ will be positive for the long haul,” Dominguez said. As this is a new virus, Dominguez explained that nations, including the Philippines, continuously learn to adapt to the challenges posed by the new and uncertain environment induced by coronavirus. “The whole world is learning how to dance with this virus: two steps forward and one step back,” Dominguez said.Earlier, the DOF chief pushed for a shift of Metro Manila and Calabarzon—accounting for about 70 percent of the country’s gross domestic product (GDP)—“as quickly as possible” to the most lenient quarantine status to kickstart the economy. However, President Duterte ordered Metro Manila, Bulacan, Cavite, Laguna, and Rizal back under the MECQ from August 4 to 18 following a surge of COVID-19 cases and the appeal of healthcare workers. The two week shift to MECQ for Metro Manila and its adjacent provinces starting today ceased some businesses and public transport, while work and quarantine passes are also reinforced to restrict non-essential movements. Reverting to MECQ is an unwelcome develop for the economic managers as it could derail hopes for a recovery in the third quarter of the year. Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua earlier said the economic impact of the quarantine measures in country was “more severe than expected.”  Days before Metro Maila reverted to MECQ, Dominguez said the local economy had already hit bottom and started to recover from the coronavirus-induced crisis, noting business activities have begun to pick up. The government had gradually eased the tough virus lockdown measures after the economy shrank by 0.2 percent in the first quarter......»»

Category: sportsSource:  abscbnRelated NewsAug 3rd, 2020

Pandemic gives debt-loaded Philippine firms a headache

“While the level and growth of debt had been frequently cited as possible vulnerabilities, the strains imposed by the pandemic will cause debt servicing difficulties,” the FSCC said......»»

Category: newsSource:  philstarRelated NewsJun 23rd, 2020

Japan debt watcher gives PH its first & lsquo;A-& lsquo; credit rating

Japan Credit Rating Agency on Thursday upgraded the Philippines’ credit rating by a notch from BBB+ to A- , citing the country’s resilience amid a pandemic that has slowed down growth, impaired fiscal positions and hurt credit ratings of economies across the globe......»»

Category: financeSource:  thestandardRelated NewsJun 11th, 2020

Duterte, Dominguez deny government underspent Bayanihan funds

The Duterte administration has denied underspending funds intended to address the COVID-19 pandemic, which has left more than 27,000 people dead in the Philippines and dragged its economy into a recession......»»

Category: newsSource:  philstarRelated News2 hr. 37 min. ago

Dominguez says government allocated P45 billion for COVID-19 vaccination

Finance Secretary Carlos Dominguez III said the amount can be used to fund both additional pandemic vaccines or booster shots, depending on the recommendation of the health department......»»

Category: newsSource:  philstarRelated News18 hr. 7 min. ago

Stocks end slump; BDO, BPI lead market gainers

Stocks rallied Thursday along with the rest of Asia on bargain hunting to snap a four-day losing streak, as worries about the Delta variant were overshadowed by more strong earnings reports indicating companies were faring well as the global economy emerges from last year’s pandemic-induced collapse......»»

Category: financeSource:  thestandardRelated NewsJul 23rd, 2021

Swelling debt to slow economic momentum

The Freedom from Debt Coalition said the country’s record-high P11-trillion debt would make it difficult to revert the economy’s momentum to its pre-pandemic levels......»»

Category: financeSource:  philstarRelated NewsJul 20th, 2021

Companies bullish on recovery

Filipino and Japanese-owned companies are bullish about the recovery of the Philippines from the pandemic-induced recession, according to Security Bank Corp. and Tokyo-based MUFG Bank Ltd......»»

Category: financeSource:  philstarRelated NewsJul 20th, 2021