JG Summit Holdings, Inc. is hiking its capital spending for 2018 as it aims to grow its petrochemical, airline, property, food and beverage, and banking businesses.
The Gokongwei-led conglomerate said on Monday, May 28, that it will be spending around P80 billion in capital expenditures this year. This is around 83% higher than the P43.5 billion it spent in 2017.
Bulk of the 2018 capex will go to Robinsons Land Corp. at P30 billion. JG Summit Petrochemical Corp. will corner P20 billion, while Cebu Air, Inc. will get “a little over P20 billion,” according to JG Summit President and CEO Lance Y. Gokongwei during their annual shareholders’ meeting late Monday.
The food and beverage business through Universal Robina Corp. (URC) will be spending P7 billion, while the balance will go to JG Summit’s smaller units.
Mr. Gokongwei said the company has already spent P11 billion out of the capex for the first quarter of 2018.
Moving forward, the company said it remains optimistic for growth prospects, amid various factors that are expected to affect its business units. This includes the implementation of the tax reform program that will hit products by URC, fuel surcharge rates weighing on Cebu Air’s operations, and the overall weakening of the peso. — Arra B. Francia