Cebu Pacific pulls down JG Summit income

Gokongwei-led conglomerate JG Summit Holdings posted a P15.95-billion core net profit in the first semester, marking a flat performance compared to the previous year, due to slower earnings from the airline business alongside some foreign exchange and hedging losses.

JG Summit’s consolidated net income attributable to equity holders of parent firm declined by 16.5 percent year-on-year in the first semester to P14.64 billion, based on a regulatory filing on Friday.

The decline in attributable profit was mostly due to lower earnings from airline unit Cebu Air amid the rise in fuel prices as well as some hedging losses. The group was also affected by foreign exchange adjustments arising from the depreciation of the peso against the US dollar.

Group-wide revenues expanded by 12.6 percent year-on-year to P134.47 billion in the first six months as all business units reported higher top line levels.

In terms of net profit, JG Petrochemicals and Robinsons Bank chalked up higher profits while URC, Cebu Air and Robinsons Land booked slower earnings.

Revenues from JG Summit’s core investments also declined in the first semester due to lower dividends declared by PLDT, even as equity in net earnings of other associates, primarily from investments in UIC/Singapore Land and Manila Electric Co., increased by 14.6 percent year-on-year to P4.62 billion. This includes the equity in net earnings of Global Power, where JG Summit earned P283.94 million from its 30-percent stake.

Outside of core operations, the group also recognized a net foreign exchange loss of P434.87 million.

Among its core operating units, JG Petrochemicals outperformed with a 31.5-percent increase in six-month net profit to P3.2 billion. This was due to an increase in the volume of products sold.

Robinsons Bank’s net earnings rose by 20.3 percent to P161.33 million for the first half, brought about by higher interest income, commission income and trading gains.

In the case of URC, six-month net income declined by 14.2 percent year-on-year to P6.26 billion on lower operating income and foreign exchange gains alongside higher finance costs and income tax provision.1112

For Cebu Air, net income for the six-month period slipped by 43.6 percent year-on-year to P4.33 billion on higher operating expenses due to the rise in fuel prices.

Robinsons Land reported a 9-percent year-on-year decline in first semester net profit to P2.92 billion. —DORIS DUMLAO-ABADILLA