JG Summit Holdings, Inc. will inject up to P17.1 billion into its petrochemical unit JG Summit Olefins Corp. (JGSOC) to cover maturing obligations, the company said on Thursday.
The company’s board approved the proposal during a meeting on Nov. 13, JG Summit said in a disclosure to the stock exchange.
“This infusion is primarily intended to pay off JGSOC’s maturing obligations. The above capital infusion will be subject to regulatory approvals, if any,” it said.
The petrochemicals business led by JGSOC widened its nine-month net loss to P11.4 billion amid “unfavorable global market conditions.”
January-to-September revenue climbed by 53% from a low base in 2023, carried by “higher plant run rates along with the full adoption of the pricing tool from its business-wide transformation program.”
For the first nine months, JG Summit saw a 16% increase in net income to P17.9 billion, while core profit rose by 39% to P20.3 billion.
The conglomerate’s revenue improved by 10% to P277 billion due to healthy demand for travel and leisure activities, a higher preference for value food and beverage products, and increased utilization rates in the group’s petrochemical plants.
In January, JGSOC inaugurated a P150-billion expanded petrochemical facility in Batangas City. JGSOC is engaged in the production of polymer grade ethylene, polymer grade propylene, pyrolysis gasoline, mixed C4, pyrolysis fuel oil, and other products and their by-products. The company markets its petrochemical products to over 30 countries.
On Thursday, JG Summit stocks dropped by 2.67% or 60 centavos apiece. — Revin Mikhael D. Ochave