JG Summit allots P44-B for 2014 capex

Posted at 06/26/14 7:39 PM

MANILA – Gokongwei-led JG Summit Holdings Inc. is setting aside P44.2 billion for capital expenditures in 2014 to fund expansions in its real estate, airline, food manufacturing, and petrochemical businesses.

Of the total funds, P16 billion will be spent to build more shopping malls for Robinsons Land Corp., while P14 billion will be spent for Cebu Air Inc.

Around P5 billion, on the other hand, will be used for the group's petrochemical business, while another P9 billion will be spent for Universal Robina Corp. to expand its food business in the country and overseas.

"The growth prospects of the company and its subsidiaries are very positive given that the Philippine economy has demonstrated a very resilient growth in the past five years despite some global financial woes. The main driver of the economic growth of the country is consumption where most of our businesses are anchored on," Gokongwei said.

He also said that despite losing in its bid for the Cebu airport project, JG Summit remains interested in future airport projects of the government.

"We will be interested partnering again with Metro Pacific in future airport projects," he said.

JG Summit expects its net income to grow by double digits this year.

Gokongwei noted that with the acquisition of the 27.1 percent stake in Manila Electric Co. (Meralco) in December last year, the company may declare higher dividends this year to P11.5 billion to P12 billion from P8.5 billion last year.