Cebu Pacific parent says positive shareholder equity imminent
MANILA -The operator of Cebu Pacific is upbeat it will finally be able to register a positive stockholders’ equity following capital-raising activities and the resurgence of air travel.
Cebu Air, in a disclosure on Wednesday, said it “has already put into place certain initiatives since 2021 which would bring its stockholders’ equity from negative to positive.”
As of end-December 2022, the Gokongwei-led company booked a capital deficiency of P2.89 billion after incurring a net loss of P13.98 billion.
The airline operator said it had raised $500 million in the past two years to temper the decline in stockholders’ equity.
In March 2021, Cebu Pacific issued convertible preferred shares through a stock rights offering. It also conducted a convertible bonds offering the following month.
“With all these initiatives, the corporation is confident that recovery to positive stockholders’ equity is imminent and forthcoming,” Cebu Air said.
The listed company is likewise rooting for a strong year due to the recovery of air travel as evidenced by a larger number of flight bookings.
Its domestic network has already reached over 100 percent of prepandemic capacity and it expects to further add local routes.
Cebu Pacific has also been ramping up international flights, especially for Japan, Taiwan, Hong Kong, Australia and China, where demand has taken off alongside the easing of border restrictions.
It projects to cater to over 3,000 weekly flights this second quarter, surpassing the 2,600 weekly flights in 2022.
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