GERI 2020 capex cut by 38%

Listed Global-Estate Resorts Inc. (GERI) has reduced its capital expenditures (capex) for this year by 38 percent to P4 billion from P6.5 billion.

During the company’s virtual stockholders’ meeting on Friday, GERI President Monica Salomon said the company would observe financial discipline to ensure its financial stability through prudent cash management and operational efficiency.

But she emphasized that GERI would still launch projects within its integrated estates despite postponing new township launches.

In a separate statement on Friday, the subsidiary of Andrew Tan-led Megaworld Corp. said it would still turn over P3 billion worth of residential and commercial projects this year.

These include residential units and commercial lots at Boracay Newcoast in Aklan province, Twin Lakes in Batangas province and Santa Barbara Heights in Iloilo province.

“We uphold our commitment to our customers for the timely completion and turnover of projects even if we are in the middle of a pandemic,” Salomon was quoted as saying in the statement.

The company also unveiled its roadmap that would help them weather the challenges posed by the coronavirus disease 2019 pandemic.

The roadmap focuses on innovations in its product design and services; digital transformation; ensuring the health, safety and well-being of their workforce; and financial discipline and strategic expansion.

GERI’s net income, excluding nonrecurring gains, declined by 9 percent to P728 million in January to June from P801 million in the same period last year.

Its revenues also fell by 29 percent to P2.9 billion from P4.1 billion year-on-year.

GERI shares shed 1 centavo or 1.25 percent to finish at 79 centavos apiece on Friday.

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Article and Photo originally posted by The Manila Times last August 29, 2020 and written by Faye Almazan.