Philippines conglomerate JG Summit Holdings Inc. has slashed its 2020 capital expenditures (CAPEX) to PHP 53.3 billion (USD1.096 billion) from PHP58 billion (USD1.19 billion) due to the challenging business environment.
JG Summit will increase the CAPEX for its food manufacturing and real estate business and sharply cut investments for its transportation and petrochemical businesses.
Its food manufacturing unit Universal Robina Corp. will have its investment rising to PHP8.3 billion (USD170.8 million) from the previous PHP6.4 billion (USD131.7 million) due to the positive result in the first half of 2020.
The CAPEX for its property development unit Robinsons Land Corp. was increased to PHP17.1 billion (USD351.9 million) from PHP16.3 billion (USD335.4 million) following the PHP 15 billion (USD308.69 million) raise of bond offering recently.
On the contrary, the capital spending for airline unit Cebu Air Inc. was slashed to PHP8 billion (USD164.6 million) from PHP13.3 billion (USD273.7 million) sd the aviation sector was dampened by travel restrictions.
JG Summit Petrochemicals also being cut from PHP20.8 billion (USD428 million) to PHP19.2 billion (USD395.1 million) due to weak volumes and selling prices.
In the January-June period, the group posted a net loss of PHP720.2 million (USD14.8 million), compared to the PHP17.39 billion (USD357.87 million) net income in the first half of 2019. Revenues in the period slumped by 26% to PHP116.5 billion (USD2.4 billion).
The group invested PHP18.2 billion (USD374.5 million) in the first six months of the year, representing 35 percent of adjusted programmed spending for 2020.
