JG SUMMIT Holdings, Inc. posted a core net income of P4.6 billion for the third quarter (Q3), up from P2.1 billion a year earlier, supported by gains in its airline, real estate, and food businesses, as well as reduced losses from its idle petrochemical plant.
“We continue to exhibit a strong upward trajectory in our recurring core profits, driven by the performance of our listed strategic business units, as well as the curbed losses from our mothballed petrochemical plant,” JG Summit President and Chief Executive Officer Lance Y. Gokongwei said in a statement on Thursday.
Revenues declined by 6% year on year to P83.5 billion, due to the shutdown of its loss-making petrochemical business earlier this year, the company said. Without it, the topline would have improved by 6%.
The company has yet to release its full financial report as of press time.
For the first nine months of the year, the company’s reported core profit slipped 5% to P19.3 billion amid the absence of the P7.9-billion gain from the merger between the Bank of the Philippine Islands (BPI) and Robinsons Bank Corp. (RBC) booked last year.
JG Summit said that its total revenues ended flat at P277.5 billion.
Excluding the downward impact of the plant shutdown, revenues climbed by 10% on the back of strong demand for travel and leisure, improving residential segment, and sustained volume-driven growth of its food and beverage unit.
The real estate and hotels businesses led by RBC delivered a revenue of P124.6 billion, up 5%, driven by higher volumes and market share gains in its domestic Branded Consumer Food segment, coupled with improving scale of the URC International business.
The air transportation segment through Cebu Air, Inc. saw an improvement of 18% to P87.6 billion, propelled by higher passenger volumes, fares, and cargo volumes.
Meanwhile, after shutting down its plant, streamlining operations, and transferring debt, JG Summit Olefins Corp. (JGSOC) was able to reduce its monthly losses to P90-100 million.
JGSOC has reduced its losses to P90-100 million following its plant shutdown, organizational rationalization, and full debt transfer to the parent company.
“Presently, JGSOC continues plant preservation while pursuing opportunistic monetization of idled assets,” the parent firm said. “At the same time, there are ongoing engagements with various relevant organizations as it explores strategic options to optimize company value considering prevailing market conditions.”
JG Summit said its share in the net income of Manila Electric Co. rose by 9% to P9.5 billion, primarily driven by the expansion of its power generation business and steady contributions from its electricity distribution segment.
Equity income from Singapore Land Group Ltd. increased by 9% to P1.5 billion with higher contributions from property investments plus better occupancy and rates in its commercial properties.
PLDT Inc. paid dividends of P96 per share, down P1. BPI increased its dividend distribution by 5% to P2.08 per share.
Shares in the company declined by 1.41% to P21 each. — Sheldeen Joy Talavera
