JG Summit incurs P689-M net loss on oil volatility

LISTED conglomerate JG Summit Holdings, Inc. reported a core net loss of P689 million for the first quarter of the year, compared to a core net income of P232 million in the same period in 2021.

“While the reopening of the economy fueled significant improvements in topline…, unprecedented volatility in oil and input prices weighed on the group’s margins, particularly in JG Summit Olefins Corp.,” the company said in a statement.

“Coupled with peso depreciation and mark-to-market losses, [JG Summit] ended the quarter with a net loss of P2.8 billion,” it added.

Except for Robinsons Land Corp., the company observed revenue growth across all of its subsidiaries. It said that its revenues improved by 7% year on year and 6% quarter on quarter due to relaxed mobility restrictions.

JG Summit’s gearing and net debt-to-equity ratios stood at 0.70 and 0.53, respectively, as of March 2022.

“At the parent level, cash amounted to P23.7 billion while net debt stood at P74.3 billion as of end-March 2022, which shall be further reduced as [the company] expects to receive cash dividends of P11 billion from its investments in the second quarter of 2022,” JG Summit said.

On per-business performance, Universal Robina Corp.’s revenues increased by 22% year on year to P35.8 billion, JG Summit noted.

Meanwhile, Robinsons Land’s revenues and net income decreased by 61% and 51% to P6.4 billion and P1.4 billion, respectively, primarily because of “high base boosted by the lumpy contribution from Chengdu Phase 1 last year.”

JG Summit Olefins saw its first-quarter revenues grow by 37% to P12.4 billion. This was driven by “increased polymer sales value as well as fresh contributions from Aromatics and Butadiene sales, as well as LPG trading,” JG Summit said.

At the same time, Robinsons Bank Corp. saw its revenues improve 5% year on year to P2.4 billion, mainly due to “higher interest income, partially offset by lower trading gains.”

JG Summit likewise saw its equity earnings from Manila Electric Co. rise in the first quarter by 30% to P1.6 billion. This was “driven by strong topline growth given the uptick in energy sales and an increase in pass-through charges of fuel,” it said. — Arjay L. Balinbin