Malls lift SM Prime 2022 income

SM Prime Holdings Inc. said its net income in 2022 rose 38 percent to P30.1 billion from P21.8 billion in 2021 on the recovery of its malls.

Consolidated revenues rose 29 percent to P105.8 billion from the previous year’s P82.3 billion.

“We are pleased to report that we ended 2022 on a positive note despite the challenges faced for the most of the year, owing to the robust consumer spending particularly in the last quarter,” Jeffrey Lim, SM Prime president, said.

“We will continue to monitor this trend and watch out for impact of movements in the inflation and interest rates, including impact on our supply chain. Meanwhile, we are poised to build on the growth momentum and proceed to expand our footprint in key areas in the country.”

SM Prime’s domestic mall business now accounts for 47 percent of the company’s consolidated revenues. It registered P49.8 billion in revenues in 2022, more than double the P24.1 billion in the previous year.

With the resumption of full rental fees in the second half of 2022, SM Prime’s local mall rental income went up by 92 percent to P44.1 billion from P23 billion in 2021.

With the notable development in the entertainment industry, SM Prime’s cinema, event ticket sales, and other revenues recorded P5.7 billion, higher than the previous year’s P1.1 billion.

In 2022, SM Prime expanded certain malls and opened four new malls in the Philippines namely Roxas in Capiz, Tanza in Cavite, Sorsogon in Bicol and Tuguegarao in Cagayan.

As of end-December, SM Prime has 82 malls in the Philippines, consisting of 58 malls in the provincial areas, and 24 malls in Metro Manila.

SM Prime’s residential business group, led by SM Development Corp., posted P40.1 billion in revenues last year, lower by 12 percent than the P45.9 billion registered in 2021. SMDC’s reservation sales reached P102 billion in 2022, slightly higher than the previous year’s P98.9 billion. This translates to an 18 percent increase in unit sales of more than 21,000 in 2022 from almost 18,000 in the previous year.

SMDC launched three new residential developments in different provincial cities of the Philippines in 2022. These include Vail Residences in Cagayan de Oro, Now Residences in Pampanga and Zeal Residences in General Trias, Cavite.

Revenues of SM Prime’s office and hotel and convention center businesses, which account for 10 percent of the company’s consolidated revenues, grew 59 percent to P10.5 billion in 2022 from P6.6 billion in 2021.

The company’s office business segment registered P6.1 billion in revenues for last year, 22 percent higher than P5 billion in 2021. Meanwhile, SM Prime’s hotel and convention center business segment reported P4.3 billion in revenues for the period, almost triple the P1.6billion revenue in 2021.

SM Prime launched FourE-Com Center in 2022, which is located at the Mall of Asia Complex in Pasay City, as well as the SMX Clark Convention Center in Pampanga, which is nestled alongside SM City Clark and Park Inn Radisson Clark. VG Cabuag

By Lenie Lectura @llectura

IBULAO Mini Hydro Corp.

(IMHC), a wholly-owned subsidiary of renewable energy (RE) firm Alternergy Holdings Corp. (Alternergy), has secured a water permit from the National Water Resources Board (NWRB) for its hydro power project in Ifugao.

“The award of the water permit is a significant milestone in the development of our Ibulao 2 Run-of-River (ROR) Hydro Power Project, which forms part of our portfolio of projects in Ifugao,” said IMHC President and Director of Alternergy Eduardo Martinez Miranda.

He noted that Alternergy’s 17.4 MW Asin-Hungduan and Ibulao1 projects in the municipality of Kiangan are currently in full swing construction while the 6.8MW Lamut project in the municipalities of Lamut and Asipulo is shovel-ready for construction.

The Ibulao 2 ROR Hydro Project involves the development, construction and operation of 7.4MW hydropower project to be built in Bryg. Bolog in the Municipality of Kiangan and Brgy. Caba in the Municipality of Lagawe. It will harness a portion of the flow of water from the Ibulao River to convert to reliable, clean and environment-friendly renewable power.

Following the issuance of the water permit, Miranda said further permitting activities will be pursued, particularly the consent of the indigenous peoples.

“In the coming months, we will commence the conduct of the activities to obtain the Free and Prior Informed Consent (FPIC) of our host indigenous cultural communities. This a long and tedious process but we already gained experience from our other projects. We are confident in due course we will have the consent of the communities.”

The Ibulao 2 ROR hydro project is part of the Alternergy’s expansion plans in the next five years. Alternergy aims to develop up to 1,370 MW of additional wind, offshore wind, solar and run-of-river hydro projects.

Part of the proceeds from Alternergy’s upcoming initial public offering (IPO) will be used to fund predevelopment activities of projects in the pipeline including the Ibulao 2 ROR hydro project. Alternergy is offering up to 1.150 billion in primary shares representing 30.11 percent of ALTER’s economic ownership, at an offer price of up to P1.48 per offer share. The offer period starts on March 13. It will list on the Philippine Stock Exchange on March 24.

BUDGET carrier AirAsia Philippines is targeting to restore “most” of its international destinations in the first quarter, after reinstating some flights to China and its territories.

Steve Dailisan, who heads the communications and public affairs office of AirAsia Philippines, said the group is expecting to “close the first quarter of 2023 with most of its international destinations reinstated.”

“Our international recovery is almost complete with the relaunching of the remaining China routes next month. It is also the perfect time to welcome spring in the most preferred tourist destinations among Filipinos such as Japan, South Korea, and Taiwan. We can’t wait to safely fly our guests from all over East Asia, and couple their trips with bestvalue deals,” he said.

Already, AirAsia Philippines has reopened flights to Macau, Shenzhen, and Guangzhou, on top of the now active Hong Kong, Osaka, Tokyo, Taipei, Bangkok, Kuala Lumpur, and Seoul routes. Dailisan added that the budget carrier is “ piggybacking on the high inbound and outbound traffic” at the Mactan-Cebu International Airport (MCIA). Lorenz S. Marasigan

CONVERGE ICT Solutions

Inc. announced its readiness to cater to both residents and businesses in Boracay by the end of the first quarter.

The company, together with the Boracay IT Association (BITA), said they intend to elevate further the island’s reputation through the company’s wide range of businessgrade connectivity solutions.

“We are excited to finally bring our world-class fiber broadband to Boracay, itself a world-class tourist destination. We are here to serve the connectivity needs of both local and foreign tourists, as we know internet connection is a value-adding service to any tourist hot spot. With this, hopefully we can meaningfully contribute to Boracay’s tourist-driven economy,” said Dennis Anthony Uy, chief executive officer and cofounder of Converge.

Converge Chief Operations Officer Jesus C. Romero said that under its “Go Deep, Go National” strategy, the company will widen its fiber footprint nationwide to reach the unserved and underserved markets.

“Boracay is an amazing place for memories and adventure, and we hope to make it the absolute paradise that it already is by providing its residents, visitors, and businesses a consistent, hassle-free, and seamless connectivity experience through our world-class, awardwinning products and services.”

The hospitality industry will be the main recipient of the telco firm’s products and services for constant business productivity which aim to help companies boost profit and earn customer loyalty.

The company, likewise, hopes to provide service to a new breed of free-spirited island-hopping entrepreneurs aptly called “Digital Nomads.” Considered independent, high-value entrepreneurial tourists, they work remotely in hotels, cafés, coworking spaces, and temporary housing, relying heavily on a high-speed and stable internet connection to do their trades.

Converge believes that recognizing the shift in the tides of doing business in Boracay will not only encourage economic growth on the island but also in the country.

According to Converge Regional General Manager for VisMin Mike Maquiran, Boracay is considered as the premiere travel destination in the Philippines and was rec- ognized as the top island in Asia at the 2022 Condé Nast Traveler Readers’ Choice Awards and is in Time Magazine’s 50 World’s Greatest Places of 2022.

“We often hear about its beauty and the diverse set of businesses present on the island, but we are also aware that connectivity within the island needs improvement,” he said. “One of the foremost needs of the modern traveler is having a stable and fast internet connection, while businesses require a reliable and better partner in connectivity.

We are confident that our products and services will help cement the island’s luxurious reputation.”

The fiber internet service provider has already provided connectivity in the island with the staging of the ASEAN ICT summit in Shangri-La Boracay last February 9 and 10, per Converge Senior Brand and Marketing Communications Specialist Gretchen Tenebro.

In an email interview with her on Monday, she told the BusinessMirror that Boracay is just the first stop of their long journey to bring their products closer to Filipinos and foreign visitors nationwide, especially in tourist sites that mostly need them. Roderick L. Abad

By Manuel T. Cayon @awimailbox

DAVAO City—The Davao Light and Power Co., a unit of the Aboitiz Group, said its customers should expect a lower electricity bill for February due to the availability of cheaper hydro power and coal.

Households which average a monthly electricity consumption of 200 kilowatt-hours (kWh) would see a decrease of P185.94 “this month of February as compared to their previous month’s billing.”

“This is because of the P0.93 decrease in the overall power rate due mainly to higher availability of cheaper hydropower supply from NPC/PSALM and decreasing fuel rates of coal suppliers,” the company said.

The generation rate was at P6.79 per kilowatt-hour for February which was a P0.85 decrease from last month, it added. “This brings the total power rate down to P11.52 from P12.45 in January.”

Power rates as reflected in Davao Light monthly bills are divided into 4 major components: generation and transmission, distribution, subsidies and other charges, and government charges and taxes.

“Generation and transmission charges are pass-through charges that Davao Light collects and pays to power suppliers and the transmission operator, respectively.”

Davao Light only charges the customers for distribution, which remains at an average of P1.4257 per kilowatt-hour as approved by the Energy Regulatory Commission (ERC). This rate has not increased since 2013.

The company sources more than 50 percent of its power requirements from non-renewable sources such as coal while nearly 50 percent comes from renewable sources such as hydropower.

Davao Light said it will maintain “a well-balanced” power mix to provide its customers with reliable power at the most reasonable cost.

The company is the third largest privately-owned electric distribution utility in the country in terms of customer size and annual kWh sales. Its franchise area covers the cities of Davao and Panabo and the municipalities of Carmen, Dujali, and Sto. Tomas in Davao del Norte, with a population of approximately 2.23 million and a total area of 3,561 sq. kms.