BIZ BUZZ: Pressing the advantage
For several weeks now, some dedicated critics of San Miguel Corp.—with “sub rosa” links to a rival group, we’re told—have been pounding on the alleged financial weaknesses of the Ramon Ang-led conglomerate, using a recent report by the analysts of Bloomberg Intelligence as a springboard.
This comes, of course, in the wake of the decision of the Energy Regulatory Commission (ERC) to deny the joint petition of San Miguel and Meralco to a temporary rate hike to allow the energy producer to recoup some of its losses in the wake of the spike in fuel costs since early this year.
Well, if you’re a rival conglomerate who’s always played second fiddle to San Miguel in the energy sphere and you suddenly find yourself in a position of power and influence under the present dispensation, why make things easier for your rival, right?
Anyway, it’s clear that San Miguel has two options after this unfortunate decision. The first is to continue its existing power supply agreement (PSA) with Meralco and keep losing money due to high fuel prices. The second is to terminate its PSAs to give itself relief from the mounting losses and allow Meralco to source emergency power from other sources.
The lie being peddled by critics—with self-anointed consumer groups chorusing “amen”—is that San Miguel risks being slapped with penalties with the possible termination of agreement with Meralco.
In fact, one critic continues to hammer on a speculative scenario where a hostile ERC leadership will slap San Miguel with over P200 billion in penalties for each of its two PSAs should the firm terminate the money-losing deals.
Is there basis for this? A reading of the PSA between the San Miguel and Meralco is clear on the issue of termination, specifically Section 11.4 of the Meralco PSA that states the “power supplier is entitled to unilaterally terminate the PSAs if the parties fail to reach a mutually satisfactory resolution within 60 days from the commencement of negotiations after any of the following events occur.”
These, of course, include an event in which the ERC denies, in whole or in part, the joint petition for price adjustment.
But will San Miguel’s rivals allow facts to get in the way of their attacks toward the conglomerate that now finds itself temporarily on its back foot? Abangan!
—Daxim L. Lucas
Sailing for marine conservation
A new three-day regatta that will sail past many storied landmarks, including the main island of Corregidor, Fort Drum and Caballo Island, promises to promote marine conservation and gather the country’s top sailors, mostly business leaders and yacht masters from Manila Yacht Club, Puerto Galera Yacht Club, Punta Fuego Yacht Club and Subic Bay Yacht Club.
The inaugural Corregidor Cup Regatta 2022, happening on Nov. 17 to Nov. 20, is organized by Ocean Racing Club of the Philippines (ORCP) under the auspices of Philippine Sailing Association.
Backed by some of the country’s most passionate sailors, the event is seen to become one of the premier sailing events in the archipelago.
“Future events will be arranged to attract overseas boats and sailors from around Asia. This year, approximately 20 boats are expected to participate from across a range of classes,” said Jerry Rollin, ORCP founding president.
In the IRC category, BPI Asset Management president Maria Theresa Marcial is racing (not as a captain this time as her boat needs new sails) as part of the crew of Hurricane Hunter, skippered by Albert Altura, founder and CEO at Red Core Geothermal and Pryme Platforms and son of former Manila Yacht Club commodore Doni Altura. Andy Aguila, owner of Aguila Glass, will also be part of Altura’s crew.
Other business leaders and seasoned sailers who are expected to participate include: writer and entrepreneur Apa Ongpin; Jun Villanueva (owner of Beatrix, one of the fastest boats in the fleet and husband of Myla Villanueva), Jun Avecilla (owner of Subic Sailing and Subic Lighthouse Hotel), Olympian, SEA Games champion and stockbroker John-John Torres of SB Equities; Michael Raueber, owner of Royal Cargo; Peter Capotosto, owner of Taal Lake Yacht Club; as well as energy veterans David Sutton and James Villarreal.
ORCP was founded by Altura, Rollin, Marcial, Villareal, Ongpin, Avecilla, Torres, Aguila and Capotosto to promote, develop and expand the sport of offshore yacht racing in the Philippines.
It draws its membership from yacht owners, regatta sailors, water sports enthusiasts and ocean conservation advocates who want to race or promote the sport of yacht racing in the Philippines as well as support the marine conservation initiatives of partner organizations like the World Wildlife Fund.
—Doris Dumlao-Abadilla
The Good Meat
Is meat good for you? Some doctors might disagree but the matter is much clearer for businessmen and specifically for the Aboitiz Group, which is taking The Good Meat butcher shops nationwide.
Tristan Aboitiz, CEO of the group’s food arm Pilmico, revealed aggressive expansion goals in line with their ambition to build a more integrated food portfolio.
The Good Meat is present in about 280 supermarkets today but the plan is to build more standalone stores and open up the business to franchising.
Most of the standalone stores are in Metro Manila but Aboitiz said they plan to penetrate the Visayas region in 2023, starting with Cebu City.
“We are very bullish on this part of the business, we believe that there is a lot of potential for growth there,” he said.
— Miguel R. Camus INQ
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