Philippines’ JG Summit reports weaker Q3 results amid petchem losses

Philippines-based JG Summit Holdings Inc. (JGS) saw a 39% year-on-year drop in net income to P3.1 billion ($53 million) for the third quarter of 2024, despite steady revenues of P89.1 billion ($1.51 billion). This decline was driven by significant losses at JG Summit Olefins Corporation amid continued weakness in the global petrochemical market and lower profits from other affiliates.

The company’s net income also decreased from P3.9 billion ($67 million) in the previous quarter.

However, for the first nine months of 2024, the company reported a 16% increase in net income, reaching P17.9 billion ($305 million). The conglomerate attributed this growth to a robust revenue increase and gains from merging Robinsons Bank with the Bank of the Philippine Islands (BPI).

Recently, industry sources reported that the company was considering shutting down its Batangas complex around the year-end due to commercial reasons and a poor outlook for the ethylene and propylene value chains.