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JG Summit Holdings, Inc.
JG Summit posts 44% income growth
By Mary Grace Padin (The Philippine Star) | Updated November 16, 2016 - 12:00am

MANILA, Philippines – JG Summit Holdings Inc. posted a consolidated net income of P23.25 billion in the first nine months of the year, 44 percent higher than the previous year.

The growth was driven mainly by the group’s airline business, which benefited from the drop in fuel prices and fuel hedging gains, and the strong performance of its petrochemicals business brought about by lower costs of the naphtha feedstock during the period.

EBITDA (earnings before interest, tax, depreciation and amortization) increased by 12 percent to P52.88 billion while core net income rose 10 percent rose to P22.83 billion.

The group’s consolidated revenues increased by 4.6 percent to P177.52 billion.

Its airline business under Cebu Air led the growth, posting a 10.5 percent rise in revenues to P46.69 billion, driven by the six percent increase in passenger volume and 8.4 percent hike in average ancillary revenue per passenger.

Robinsons Land Corp. registered a 15.2 percent growth in revenues to P16.81 billion owing to stronger real estate sales, as well as the rental income contribution of its four newest malls and three office buildings.

Revenues of Robinsons Bank also increased by 14.9 percent to P2.51 billion, mainly due to increase in interest income recognized from finance receivables.

JG Petrochemicals Group also posted an 8.2 percent growth in revenues to P21.03 billion.

On the other hand, Universal Robina Corp. reported a slight decrease in revenues to P81.73 billion due to the decline in the sales of branded consumer foods, as well as products abroad.

Revenues from JG Summit’s core investments also declined as of the end of September this year as dividend income fell 29.4 percent to P1.99 billion. This was primarily due to lower dividends declared by PLDT Inc. during the period.

Equity in net earnings of associates, primarily from investments in United Industrial Corp. and Manila Electric Co. slightly went up to P6.35 billion.

During the period, the group also recorded equity earnings from the purchase of a 30 percent stake in Global Business Power Corp. last June 28.

Operating expenses grew 10.8 percent to P31.93 billion due to higher selling, general and administrative expenses incurred by the airline and food business units.

Operating income rose 10 percent to P40.23 billion.

As of the end of September this year, JG Summit had assets of P647.89 billion.
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...joining AGI in infrastructure foray

JG Summit eyes airports, infrastructure projects

The infrastructure arm of JG Summit Holdings Inc. disclosed a plan to submit unsolicited projects to the government to develop airports and other transport infrastructure projects.

“I think transport related, primarily. We are still looking for opportunities,” JGSHI president and chief operating officer Lance Gokongwei told reporters, when asked about the plans of the newly-created infrastructure unit.

The Securities and Exchange Commission approved in September the incorporation of JGSHI.

JG Summit earlier teamed up with Filinvest Group to develop Clark International Airport for P187 billion, but the proposal was rejected by the Transportation Department as the government chose to undertake the expansion of the airport by itself.

JG Summit also teamed up with Metro Pacific Investments Corp. to jointly bid for the P17.5-billion Mactan-Cebu International Airport passenger terminal project, but it lost to GMR-Megawide Group.

The company has interests in airline, real estate, banking, food and beverage and petrochemical. It also holds minority interests in power generation and telecommunications.

JG Summit, the investment company of tycoon John Gokongwei, earmarked P48.2 billion for 2017 capital expenditures, higher than P41.9 billion it spent in 2016, to expand operations of core businesses.

Of the total, Universal Robina Corp, the group’s food manufacturing unit, budgeted P7.2 billion to expand the capacities of existing facilities both here and abroad.

Property unit Robinsons Land Corp. allocated P16 billion to construct new malls, offices, hotels and land banking activities.

The balance will be used for fleet expansion of Cebu Air, operator of Cebu Pacific and Cebgo; operating and maintenance capex of the petrochemicals group; and the expansion and maintenance projects of Robinsons Bank Corp.

JG Summit posted a consolidated net income of P14.64 billion in the first half of the year, down 16.5 percent from P17.53 billion in the same period last year.

Consolidated core net income amounted to P15.95 billion, slightly lower than 15.99 billion in same period in 2016.

Revenues went up 12.6 percent to P134.47 billion from P119.38 billion.


source: http://manilastandard.net/business/biz-p...jects.html
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BCDA, DOTr to review Clark airport proposal of JG Summit, FDC

The Bases Conversion and Development Authority (BCDA) and the Department of Transportation (DOTr) are set to review the unsolicited proposal of the consortium composed of Filinvest Development Corp. (FDC), JG Summit Holdings Inc. and Changi Airports International for the long-term development of the Clark International Airport.

In a joint statement yesterday, the BCDA and DOTr said they have received the unsolicited proposal from the consortium.

“The DOTr and BCDA will thoroughly review the legal, technical, and financial aspects of the proposal within a specified timeline and strict deadline based on the required processes and regulations,” the joint statement read.

Last week, FDC and JG Summit announced they have submitted their unsolicited proposal to the BCDA and the DOTr which would involve the investment of P839 billion for the long-term development of the Clark International Airport.

Under the proposal, the consortium would augment the capacity of the airport, expand facilities including terminals and runways, as well as operate and maintain the existing and new passenger terminals.

The consortium also intends to develop, operate and maintain the commercial assets of the Clark International Airport, which include facilities for general aviation and fixed-base operations and real estate.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1
This offer is different from the P187 billion unsolicited proposal submitted by FDC and JG Summit earlier, as it does not include the construction of the second terminal building.

The government had earlier rejected the P187 billion proposal as it has decided to pursue the development of the Clark airport using the hybrid public-private partnership approach.

Meanwhile, the DOTr and BCDA said they are on track with the bidding for the construction of a new passenger terminal building in the Clark International Airport.

Some 12 local and foreign firms bought bid documents for the construction of the new terminal building for the Clark airport.

Deadline for submission of bids is on Dec.5, while the construction contract will be awarded to the winning bidder on Dec.15.

The government is developing Clark airport as an alternate global gateway.


source: http://www.philstar.com/business/2017/11...summit-fdc
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...inacknowledge na ni JGS kailangan na din nya pumasok sa infra

JG Summit continues to look for opportunities in infra sector

G Summit Holdings Inc., continues to look for opportunities in infrastructure, Lance Gokongwei, its president, said in a recent interview with reporters.

“We will continue to consider other opportunities,” Gokongwei said when asked what’s next for JG Summit after submitting an unsolicited proposal for the long-term development of the Clark International Airport.

Gokongwei, said that for JG’s next infrastructure venture, it’s not necessarily confined to just airport projects.

He said the conglomerate would look into other infrastructure opportunities as they come.

JG Summit has teamed up with Filinvest Development Corp. (FDC) for the redevelopment of the Clark Airport.

The consortium committed to pour in P839 billion for the long-term development and operations of the airport.

It submitted an unsolicited proposal to the Bases Conversion and Development Authority (BCDA) and the Department of Transportation (DOTr).

The submission contains a detailed proposal for the long-term development of the Clark International Airport through a joint venture agreement.

Aside from FDC and JG Summit, the consortium will also include the Changi Airports International (CAI) as the technical partner for the proposed development.

According to their blueprint, the consortium will build future capacity augmentation, expand airport facilities including terminals and runways, among others, as well as operate and maintain the existing and new passenger terminals.

Furthermore, the consortium also proposed to develop, operate and maintain the commercial assets of the Clark International Airport which include facilities for general aviation and fixed- base operations, and real estate.

Gokongwei did not comment on the status of the Clark proposal.

Last September, JG Summit announced the creation of JG Summit Infrastructure Holdings Corp., an infrastructure subsidiary.

The newly formed infrastructure subsidiary is a reflection of JG Summit’s intention to become a major player in infrastructure even as it had earlier expressed interest to join other groups in bidding for the operations and maintenance of airports that the government is developing.

The Duterte administration has vowed to boost infrastructure spending to seven percent of gross domestic product from five percent at present, as it recognizes the need for infrastructure projects in the country such as roads, bridges, airports, among others.

JG Summit’s businesses include airline, food and beverage, property development, banking, power generation, hotel and petrochemicals.


source: http://www.philstar.com/business/2017/12...fra-sector
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