JG Summit allots over 60% of $1-B capex to property, petrochem units

Robinsons Land Corp. and JG Summit Petrochemical Corp. will get the lion's shares in this year's $1.33-billion capital expenditure allotted by conglomerate JG Summit Holdings Inc.

 

In a presentation during the company's stockholders' meeting, JG Summit president and chief operating officer Lance Gokongwei said $325 million will go to Robinsons Land and $300 million to JG Summit Petrochemical Corp.

 

The property developer will spend its allotment to build new malls, hotels, and office buildings throughout the country, Gokongwei noted. Robinsons Land is looking for infrastructure projects, particularly airport developments, he added.

 

JG Summit has partnered with Metro Pacific Investment Corp. to bid for the P17.5 billion Cebu Mactan Airport project.

 

The progress of the construction of JG Summit Petrochemical's naptha cracker is on schedule, and the plant will likely be commissioned by the fourth quarter of 2013 and commercial operations will start in early 2014, he added.

 

The other core business of JG Summit, airline Cebu Air Inc. is spending $275 million to buy new airplanes and food manufacturer Universal Robina Corp. is spending $120 million.

 

The conglomerate said net income slipped to P4.86 billion from P4.91 billion a year earlier, largely from foreign exchange losses, lower net earnings from associates and weaker  mark-to-market gains.

 

Still, core net income was up 27 percent to P7.46 billion and consolidated revenues were up 8.4 percent to P38.4 billion on the strong performance of all business units, except for JG Summit Petrochemical. —  VS, GMA News