Benguet Corp., led by the Romualdez family, is set to expand beyond mining after fully settling its long-standing debt, paving the way for diversification into new business ventures.
“Looking forward, after having fully settled its long outstanding debt, the management is poised to undertake diversification strategies and to continue to improve shareholders’ value,” the company said in a disclosure on Thursday.
Last December, Benguet announced plans to venture into agriculture, real estate, bulk water, and renewable energy. With its financial obligations addressed, the company is now free from restrictions that previously hindered its growth.
“Now with improved creditworthiness and a clean balance sheet, [Benguet] can resume capital market activities and engage investors in undertaking new projects and expansion of existing operations that will create new revenue streams for the company and will hopefully lead to future dividend payouts,” it added.
Benguet remains primarily engaged in mining and mineral exploration while holding interests in logistics, health care, diagnostics, industrial equipment trading, port services, shipping, real estate, and lime kiln operations. It currently operates a gold mine in Benguet, nickel mines in Zambales, and a processing facility in Baguio City.
Financial Outlook and Performance
Despite a 21-percent drop in net income to P436 million in 2024 and a 4-percent decline in revenues to P2.4 billion, Benguet remains optimistic. The company attributed the dip to the effects of its debt settlement.
Strong operating results were recorded as a 24-percent increase in gold prices helped offset a 16-percent decline in nickel prices. The rationalization of its Acupan mining project also contributed to the positive gold operations. Additionally, the appreciation of the US dollar against the peso boosted the company’s performance.
Benguet projects its earnings to exceed 2024 levels, with gold prices surpassing $3,000 per ounce this year. Total equity rose 9 percent to P9.14 billion.
