GT Capital boosts 2016 capex to P60 B

MANILA, Philippines - GT Capital Holdings Inc. is  looking at a P60 billion capital expenditure program for 2016, higher than this year’s P50 billion.

In an analysts’ briefing yesterday, GT Capital chief financial officer Francisco Suarez Jr. said the figure is preliminary and  could still be adjusted.

Bulk of the programmed capital budget would go to power projects (P15 billion) and property projects under Federal Land (P15 billion).

GT Capital reported a 32 percent jump in its nine-month profit to P8.4 billion as revenues rose 10 percent to P115.1 billion.

The growth was driven by robust vehicle sales from Toyota Motor Philippines Corp. as well as sustained real estate sales from its property unit.

“GT Capital’s performance for the period validates our distinct business model of strong partnerships and synergies. 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,” GT Capital chairman Francisco  Sebastian said.

In early November, Philippine AXA Life Insurance Corp. (AXA Philippines), AXA Asia, and First Metro Investment Corp. signed a P2.3 billion sale and purchase agreement for the full acquisition of Charter Ping An by AXA Philippines.

Metropolitan Bank & Trust Co., meanwhile, reported an unaudited consolidated net income of P13.3 billion. Net interest income amounted to P36.3 billion, accounting for over 70 percent of total operating income.

Toyota Motors Philippines  posted a P7.7-billion net profit, up 56 percent  year on year. Consolidated revenues went up by six percent to P81.9 billion with a total of 89,107 vehicles sold during the nine-month period or 16 percent higher year on year.

Federal Land earned P1.1 billion from January to September while revenues grew 15 percent to P8 billion as rental income grew 33 percent to P586.6 million, driven mostly by leases in GT Tower International and Blue Bay Walk in Makati and Pasay cities, respectively.

Earnings of insurance unit AXA Philippines expanded by 31 percent to P1.1 billion owing to higher gross premiums and gains realized from securities.

Total sales in annualized premium amounted to P3.6 billion, up by 26 percent on stronger demand for single-premium, investment-linked insurance products, as well as a significant increase in the company’s agency force.