Ty holding firm sets 2016 capex at P60B
GT Capital Holdings Inc., the listed holding firm of tycoon George S.K. Ty, said capital spending next year is projected to increase 20 percent to P60 billion, mainly to support its power and property businesses.
GT Capital, which is on track to spend its budget of P50 billion for 2015, plans to spend bulk of the 2016 capex on Global Business Power Corp., Property Company of Friends Inc. (Pro-Friends), and Federal Land Inc., company chief financial officer Francisco Suarez Jr. said in a briefing Monday.
Suarez said P15 billion will go toward the power group, another P15 billion for land banking and project development at Federal Land, and another P10 billion in line with the acquisition of Pro-Friends. The balance is mainly for its financial service and automotive businesses, he said.
The spending comes as GT Capital seeks to support growth in the coming years.
GT Capital said in a stock exchange filing Monday that net income in the nine months to September this year jumped 32 percent to P8.4 billion, while total revenues hit P115.1 billion, up 10 percent.
Revenue growth, it said, was supported by vehicle sales from Toyota Motor Philippines Corp., sustained real estate sales from Federal Land Inc. and other associates.
Article continues after this advertisement“GT Capital’s performance for the period validates our distinct business model of strong partnerships and synergies,” GT Capital chair Francisco C. Sebastian said in the filing.
Article continues after this advertisement“We further enhanced this strategy through the recently disclosed acquisition by AXA Philippines of Charter Ping An Insurance Corp. Through such initiatives, we remain confident in GT Capital’s continued growth momentum,” he said.
GT Capital said in its filing that Toyota Motor Philippines saw consolidated revenues increase 6 percent in the first nine months of this year to P81.9 billion. Meanwhile, consolidated net income rose 56 percent to P7.7 billion.
Global Business Power Corp.’s net fees, meanwhile, reached P13.7 billion during the period. The power company’s net income increased 15 percent to P1.9 billion.
Federal Land’s nine-month 2015 revenues also grew 15 percent to P8 billion.
