Ty’s conglomerate eyes transportation, infrastructure
MANILA, Philippines – Conglomerate GT Capital Holdings, Inc is tapping into transportation and infrastructure, specifically looking into the Light Rail Transit line 2 (LRT2) operation and maintenance and the Laguna-Lakeshore expressway dike project.
“We would to expand in that space (transportation and infrastructure) because there are synergies with the rest of our subsidiaries and products we have in the portfolio,” GT Capital president Carmelo Bautista said in an interview.
The LRT2 project winning bidder would operate and maintain the existing 13.8-kilometer (km) line from CM Recto Avenue in Avenida, Manila, to Santolan in Pasig City, covering 11 stations.
The project includes the proposed P9.7-billion ($215.99-million) extension project covering an additional 4.19 km and two stations all the way to Masinag, Antipolo City.
The Laguna lakeshore expressway-dike project, on the other hand, is the biggest public-private partnership (PPP) project under the Aquino administration and costs P123-billion ($2.74-billion).
Meanwhile, GT Capital reported a third quarter net income of 46% to P2.4 billion ($53.44 million) from P1.6 billion ($35.63 million) from the same period last year, attributed to the strong performance of its core business units.
In a statement to the Philippine Stock Exchange, GT Capital said the third quarter consolidated revenues jumped 40% to P38.8 billion ($864.04 million) against P27.7 billion ($616.86 million) in the same quarter last year.
The conglomerate posted a net income decline of 18% for the first 9 months of 2014 from a 34.4% drop in net income in the first half of the year.
GT Capital’s 9-month net income stood at P6.3 billion ($140.30 million) from P7.7 billion ($171.46 million) recorded in the same period in 2013. The company’s consolidated revenues for the first 9 months of this year grew 37% to P104.9 billion from P76.8 billion in 2013.
The conglomerate’s revenue increase is attributed to the higher vehicle sales of Toyota Motor Philippines Corporation; improved net fees of Global Business Power Corporation; and the continued robust real estate sales of Federal Land, Inc.
“GT Capital’s performance for the first 9 months of this year is on track due to the encouraging results delivered by our component companies. We therefore remain confident in achieving our full-year targets,” GT Capital chairman Francisco C. Sebastian said.
Sebastian cited factors that are seen to further enhance the performance of the conglomerate’s subsidiaries and affiliates: favorable foreign exchange rates, higher remittances from overseas Filipinos, greater demand for power; and increased personal consumption expenditure during the holiday season.
Strong business units
The group’s banking unit, Metropolitan Bank & Trust Company reported a consolidated net income of P13.1 billion ($291.69 million) for the first 9 months of 2014. Third quarter net profit, meanwhile, grew 57% to P4 billion ($89.08 million).
Toyota’s net income for the first 9 months of the year rose 53% to P4.9 billion ($109.13 million) from P3.2 billion ($71.27 million) in 2013 as total revenues reached P77.2 billion ($1.72 billion), 33% higher than the P58.1 billion ($1.72 billion) posted in the first 9 months of last year.
Global Business Power Corporation, meanwhile, hit P1.7 billion ($37.83 million) in its 9-month net income, up 8% year-on-year. Revenues grew 14.5% to P14.3 billion ($318.34 million) from P12.5 billion ($278.30 million) in 2013.
Its real estate arm, Federal Land, increased its net income by 26% to P1.1 billion ($24.49 million) from P900 million ($20.04 million) in 2013. Its total revenues reached P7 billion ($155.87 million), up 16% from P6 billion ($133.60 million) last year.
Federal Land will open its first commercial wall, the Blue Bay Walk in Pasay City, this year. – Rappler.com
*$1 = P44.92
Roads, bridges image via Shutterstock