GT Capital Holdings Inc., the holding company of tycoon George Ty, reduced its 2016 capital expenditures to P44.7 billion from an initial estimate of P60 billion.
GT Capital said in a regulatory filing the 2016 budget would be used to support the growth of banking, power generation, automotive and real estate businesses.
It said funding for this year’s capital spending would be sourced from internally-generated funds and debt.
GT Capital said it allocated P10 billon for additional equity infusion in mass housing developer Property Company of Friends Inc. It also appropriated P5.6 billion for land banking, land development and investment properties of PCFI.
The conglomerate current owns a 22.68-percent stake in PCFI and plans to exercise its option to increase its direct shareholding in the company to 51 percent within the next three years.
GT Capital budgeted P8.3 billion primarily for power generation unit Global Business Power Corp. to finance the expansion of Panay Energy Unit 3 and venture into biomass projects.
GBPC signed an agreement with Roxas Holdings Inc. in 2014 for the development of a 40-megawatt biomass project in La Carlota City, Negros Occidental.
GT Capital also earmarked P7 billion for its automotive business under Toyota Motor Philippines Corp., which plans to expand in the country.
TMP in 2015 sold a record 125,027 units, up by 18 percent from the previous year. Consolidated sales rose 9 percent to P114.3 billion from P104.9 billion in 2014.
Banking unit Metropolitan Bank & Trust Co. will also spend P7 billion in branch expansion and ATM network enhancement while property unit Federal Land budgeted P2 billion for capital spending to finance office and retail projects.
The remaining amount was appropriated for insurance and Toyota dealership units.
GT Capital’s consolidated net income attributable to equity holders of the parent company increased 32 percent in 2015 to P12.1 billion from P9.2 billion in 2014.
The increase was principally due to the 13-percent hike in consolidated revenues to P159.2 billion from P141.1 billion in 2014.
