JG Summit cuts 2020 capex by P34B

JG Summit Holdings, Inc., led by the Gokongwei family, is cutting its 2020 capital expenditure (capex) budget to P58 billion due to the economic impact of the COVID-19 pandemic.

This revised capex is a 30% reduction from the initial allocation of P82 billion and a 20% decrease compared to the actual spending in 2019, which was P72.1 billion.

The majority of the budget cuts are attributed to Cebu Pacific, as the company renegotiates payments and delivery schedules for new aircraft orders.

Robinsons Land Corp., JG Summit's property arm, will defer projects that have not yet started while continuing ongoing construction that had been suspended due to the enhanced community quarantine.