Razon wary pandemic may last end of 2021

Billionaire Enrique K. Razon Jr. is not letting his guard down and intends to manage the resources of his port and gaming businesses judiciously, wary of a prolonged pandemic that may last until the end of the year.

During the annual stockholders’ meeting of Bloomberry Resorts Corporation, Razon said “we will maintain prudence in the management of our operating costs and balance sheet by accounting for the worst-case scenario.”

Enrique K. Razon Jr.

“That is, we recognize the possibility of remaining in a prolonged pandemic situation for the rest of this year,” he explained.

However, Razon said “Our management team is focused on bringing revenue and profit levels back up in spite of the limitations, while remaining conscious of our cash preservation goals.”

For additional support, Bloomberry has successfully upsized one of its existing credit facilities to make available a P20 billion credit line “that will help us outlive the pandemic.”

At the International Container Terminal Services Inc. ASM, Razon said “we continue to be alert and prepared to adapt quickly as new information and challenges arise. We are certainly not letting our guard down.”

Despite this, he said “The Group’s capital expenditure budget for 2021 is approximately $250.0 million.”

This is higher than the target capex of US$160 million for 2020 and the actual $198 million spent last year.

This year’s capex will be used for the completion of the expansion project at the MICT in the Philippines, the ongoing expansion at Matadi Gateway Terminal in the Democratic Republic of Congo, the new expansion project at VICT in Australia, equipment acquisitions and upgrades, and for various maintenance requirements.  

Meanwhile, Bloomberry will continue work on key capital projects at Solaire and in Quezon City. Work on Solaire North continues, but the pace has slowed since various health and safety measures have been set up to protect workers.

“Despite tough construction conditions, we look forward to delivering a high-quality product by 2023, in time for a potential strong economic recovery that usually follows a crisis and the return of international travel and tourism,” said Razon.