by admin | Mar 28, 2025 | business, economics, investing, investing business news, money
MANILA, Philippines – The net income of JG Summit Holdings Inc., led by the Gokongwei family, climbed by 10% to reach PHP 22 billion in 2024 due to profits from selling their bank subsidiary, compensating for challenges faced by its aviation division.
Core net income, encompassing one-time profits, jumped by 29 percent to reach P24.9 billion.
On Thursday, in an official paperwork submission, the large corporation reported that their earnings concluded at PHP 379.7 billion, marking an increase of 11%.
Based on information from JG Summit, their earnings were boosted by a P7.9 billion profit resulting from the merger between Robinsons Bank and Ayala Corporation-controlled Bank of the Philippine Islands (BPI), which became the surviving entity post-merger. Shareholders of Robinsons Bank still maintain a 6% ownership interest in BPI.
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Philippine competition authority approves BPI-Robinsons Bank merger
“Despite having varied outcomes from our various divisions and ventures, we managed to steer through 2024 successfully,” stated Lance Gokongwei, President and CEO of JG Summit, in an official statement.
Despite an increase in passenger numbers, Cebu Pacific concluded 2024 with a 32 percent decrease in net income due to expenses associated with expanding their aircraft fleet.
As stated separately, the airline disclosed that its net profit dropped to P5.4 billion in the previous year from P7.9 billion recorded in 2023.
The top line increased by 16 percent to reach ₱104.9 billion, with passenger revenue alone rising by 14 percent to hit ₱71.3 billion.
Additional businesses contributed P28 billion, an increase of 16 percent. In contrast, cargo revenues jumped 39 percent to reach P5.6 billion.
Regarding passenger traffic, the volume increased by 18 percent to reach 24.5 million.
The low-cost carrier dominated most of the domestic network with a 54.1 percent share. In terms of the international market, it claimed a 20.6 percent stake.
However, with the launch of new routes, Cebu Pacific was compelled to acquire extra airplanes and backup engines, which put pressure on their profits. The company currently operates 98 aircraft following the addition of 17 planes in the previous year.
The leasing of aircraft and engines totaled P900 million. Charges related to airports, including landing and takeoff fees, along with ground handling costs, added up to P11.37 billion.
Gokongwei was hoping that 2025 would tell a different tale.
“As we enter 2025, our main focus will be to boost the total revenue growth across all our business units due to the anticipated upturn in consumer confidence with the decline in inflation,” he noted.
At snack manufacturer Universal Robina Corp., earnings climbed to P161.9 billion, marking a 3% increase thanks to improvements in their overseas operations.
The real estate sector of Robinsons Land Corporation showed a 3% growth in revenue, reaching ₱40.1 billion. Meanwhile, JG Summit Olefins Corp., which operates in the petrochemical industry, experienced a significant surge of 33%, with revenues climbing to ₱50.4 billion.
by admin | Mar 28, 2025 | alternative energy, business, energy sector, news, wind energy
MANILA, Philippines – Listed company Alternergy Holdings Corp. has been awarded a contract for the development of a 150-megawatt (MW) onshore wind project in Albay province.
The Department of Energy (DOE) granted the contract via Alternergy’s wind sub-holding entity, Alternergy Wind Holdings Corp. (AWHC). The mentioned power corporation disclosed this information on Thursday.
The AWHC also received a Certificate of Authority (COA) permitting them to conduct exploration and evaluation of wind resources for the Albay Wind Power Project.
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Alternergy seeks funding for its 500-MW target
AWHC President Knud Hedeager stated, ‘We at Alternergy are delighted to have received the DOE’s approval for developing an additional wind project in Luzon.’
“It (the COA issuance) aids developers right from the beginning, thus assisting in reducing project risks and improving the overall feasibility of projects,” he further stated.
The certification enables developers to obtain necessary permissions and clearances from governmental bodies and municipal authorities, allowing them to start working on their planned projects.
Alternergy mentioned that they have a three-year window to finish the pre-feasibility studies along with the permitting processes. The COA will transform into a 25-year wind energy services agreement once evidence shows that the project location holds commercial viability.
The proposed wind plant would encompass multiple municipalities in Albay over an area of 6,318 hectares. After taking part in the Albay Renewable Energy and Investment Summit held last September, AlternEnergy stated they came up with this wind initiative, capable of supporting a minimum of 150 MW of power output.
“This is a thrilling period for us because we are poised to finish building our Tanay and Alabat Wind Power Projects this year. Following these developments, Alternergy will proceed with initiating new wind project ventures,” stated Hedeager.
The Albay wind initiative represents the most recent venture for Alternergy, with plans to advance up to an additional 500 MW of wind, solar, and run-of-river hydro developments within the coming two years.
Alternergy manages a collection of project firms involved in various renewable energy initiatives, specifically including wind power, run-of-river hydroelectricity, solar farms, commercial rooftops, battery storage systems, and offshore wind ventures.
Currently, the corporation boasts 11 operational assets totaling an impressive 86 MW. They anticipate adding another 225 MW from four projects scheduled to be completed this year.
by admin | Mar 28, 2025 | economic policy, economics, inflation, macroeconomics policy, politics
WASHINGTON, D.C. — A top Federal Reserve official stated on Thursday that it appears “unavoidable” that Donald Trump’s tariff proposals will lead to higher near-term inflation, though this rise might not last long.
After coming back to the White House, Trump has issued threats about imposing tariffs on major trade allies — such as China, Canada, and Mexico — but then partially rescinded these measures, leading to uncertainty among both investors and political figures.
He has levied a 25 percent duty on steel and aluminum imports, declared a 25 percent tariff on incoming cards, and intends to implement additional tariffs the following week.
“Tariffs appear certain to drive up inflation in the short term,” said Boston Fed President Susan Collins at an event held in Boston.
“If an uptick in pricing levels filters through to inflation rather swiftly,” stated Collins, who holds a voting position on the Federal Reserve’s interest-rate setting panel this year. “Subsequently, fundamental inflationary pressures will start playing out.”
“So my basic perspective is shaped within that framework,” she went on, noting that should further tariff rounds occur or become wider-ranging, the resulting inflationary effects might likely “linger longer.”
Collins’ remarks mirror those of her fellow Federal Reserve member and St. Louis Fed President Alberto Musalem, who similarly holds a voting position on the U.S. central bank’s interest-rate committee this year.
On Wednesday, Musalem contended that tariffs might cause a probable immediate and short-term rise in prices, along with an additional indirect effect that could exert a more enduring influence on inflation.
The team at the St. Louis Fed calculated that the overall impact on inflation might be as high as 1.2 percentage points — a considerable rise considering that inflation continues to stay above the Federal Reserve’s longstanding objective of 2%.
The Federal Reserve has a two-part mission to address both inflation and unemployment, mainly through adjusting its primary interest rate up or down.
If inflation remains stuck above the Fed’s target and the labor market remains relatively healthy, the Fed could be forced to pause rate cuts for longer, which would keep the cost of borrowing for both consumers and businesses elevated.
Surveys measuring consumer confidence have indicated a significant drop following President Trump’s return to office, as participants expressed worries regarding the impact of tariffs on the economy and voiced concerns over increasing inflation rates.
Earlier this month, Fed officials penciled in two rate cuts this year, while raising their inflation outlook and cutting their forecast for economic growth.
by admin | Mar 28, 2025 | asia, business, commerce, technology, telecommunications
MANILA, Philippines – Globe Telecom Inc. has entered into an agreement worth PHP 1.87 billion to establish a joint venture (JV) with a subsidiary of the Singtel Group aimed at enhancing cloud, data, and artificial intelligence services across the Asia-Pacific area.
On Thursday, the Ayala Corporation announced that NCSI Holdings Pte. Ltd., based in Singapore, will acquire a 51% ownership stake in Globe’s IT subsidiary, Yondu, while retaining a 49% share.
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Globe observes indications of recovery and invests in broadband operations.
Yondu will also gain complete control over NCSI’s domestic affiliate—NCSI Philippines, whose primary services encompass digital applications, infrastructure, engineering, and cybersecurity.
Yondu is an IT solutions company providing services such as custom software development, managed security, e-commerce solutions, and cloud services.
Globe stands to gain from the technological expertise and product range provided by the consolidated assets of the joint venture.
Globe is a collaboration between Ayala Corporation and SingTel, with Asiacom Philippines Inc., their joint venture, holding 52.3 percent of the company.
In addition, Ayala holds a 14.5% share in Globe, whereas Singtel owns 22.2%.
“Our aim for Yondu is to become a positive influence via efficient IT solutions and offerings,” stated Ernest Cu, who serves as the president and CEO of Globe.
Going global
Cu mentioned that joining forces with NCSI will open up new international prospects, allowing Yondu to broaden its scope and provide more effective IT solutions across the globe.
“This partnership represents a crucial step in our expansion within the Asia-Pacific region as we remain committed to investing in order to address the increasing demand for technological services, specifically AI-driven solutions,” said NCSI CEO Ng Kuo Pin.
The transaction is awaiting regulatory approval.
Globe and NCSI are teaming up as the need for digital solutions tailored to businesses increases.
A study conducted by International Data Corp. forecasts that the IT services market across the Asia-Pacific region is expected to grow at an annual compound rate of 6.2% between 2024 and 2028. In this timeframe, the market in the Philippines is anticipated to expand with an impressive 8.7% yearly increase.
In order to enhance its IT services, Globe has also been bolstering its infrastructure to accommodate the rise in data traffic.
Last year, the corporation affiliated with Ayala built 1,212 new cell sites, improved 4,613 current mobile locations, and installed 67,456 home fiber connections. Additionally, they set up 587 new 5G stations nationwide.
by admin | Mar 28, 2025 | economics, government, international trade, politics, politics and government
MANILA, Philippines – Trade Secretary Ma. Cristina Roque plans to meet with her American peer to address the possible negative effects on the economy due to President Trump’s suggested reciprocal tariffs, which have unsettled financial markets and heightened anxiety among traders and investors.
“I have scheduled a meeting with my peer. Therefore, I am merely awaiting the details of the appointment,” Roque stated to journalists during his break at the Asia CEO Forum on Thursday when questioned regarding the matter.
Roque mentioned that things will continue “as normal” for the moment, dismissing worries regarding the impact of the tariffs set to begin next week.
READ:
Surge of Trump tariffs expected to impact family finances
“So, let’s keep doing what we’re doing, focus on the bright side, and continue to develop and truly elevate ourselves. We should also seek out opportunities to genuinely become experts in our field,” Roque stated.
Trump just announced a 25-percent tariff on imported vehicles and automotive parts, effective April 3.
The automotive sector in the United States has raised worries that such actions could result in increased vehicle costs along with decreased availability, causing shares of leading companies like General Motors and Ford to decline after the news was released.
Trump defended the tariffs as a step to safeguard American manufacturing positions and suggested the possibility of imposing additional duties on various sectors.
In the case of the Philippines, these duties might bring about considerable economic impacts.
As the United States is a key market for Philippine exports, notably in the automotive industry.
In 2024, the Philippines shipped around $1.89 billion worth of machinery and electric goods to the United States, as stated in a CPBRD document. The CPBRD serves as the research wing of the House of Representatives.
The Philippines is cautious about the new U.S. tariff policy since the country exports significantly more than it imports from the United States, leading to a trade surplus of $4.9 billion in 2024, which marks a 21.8 percent rise compared to the prior year.
This excess might attract unwelcome notice from the Trump administration, viewing trade surpluses as evidence of imbalanced trading tactics.
