Conglomerate JG Summit Holdings Inc. said it reduced its 2020 capital expenditures to P53.3 billion from P58 billion amid the challenging business environment brought about by the pandemic.
JG Summit said in a presentation during a recent analysts’ briefing that while it raised capital spending for real estate and food manufacturing, it reduced investments for transportation and petrochemical businesses.
Based on the group’s latest spending plan, the capex of Universal Robina Corp. would increase to P8.3 billion from P6.4 billion after the food manufacturing unit delivered positive results in the first half.
The capital spending of property development unit Robinsons Land Corp. was raised to P17.1 billion from P16.3 billion after the company raised P15 billion from a recent bond offering.
The capital expenditures of airline unit Cebu Air Inc. was reduced to P8 billion from P13.3 billion, as the aviation sector was affected by travel restrictions.
It said the capital spending for petrochemical business under JG Summit Petrochemicals would be trimmed to P19.2 billion from P20.8 billion as volumes and selling prices remained weak.
JG Summit said it invested P18.2 billion in the first half, representing 35 percent of adjusted programmed spending for the year.
JG Summit earlier said it suffered a net loss of P720.2 million in the first six months, a turnaround from the P17.39-billion net income in the same period last year.
First-half revenues fell 26 percent to P116.5 billion as the implementation of the enhanced community quarantine starting mid-March severely impacted the operations of airline, petrochemical, mall and hotel businesses.
JG Summit said it would continue to accelerate digital transformation and embed customer-centricity across the group.
The conglomerate in July raised $600 million from the issuance of 10-year bonds priced at 4.125 per annum. Net proceeds from the fund-raising activities will be used for general corporate purposes.