San Miguel bottom line surges to P43.4B
San Miguel Corp. (SMC) benefited from its $3.3-billion deal with the country’s other power giants, causing its first-quarter earnings to surge by nearly fivefold.
In a statement on Wednesday, the conglomerate said its earnings in the January to March period had ballooned to P43.4 billion from P8.9 billion a year ago.
To recall, San Miguel Global Power Holdings Corp. (SMGP) entered into an agreement with Manila Electric Co. and Aboitiz Power Corp. to sell the Ramon Ang-led firm’s 67-percent stake in the Ilijan power plant and another liquefied natural gas project.
Foreign exchange gains also helped boost profit.
Without these nonrecurring items, SMC’s core net income during the quarter surged by 31 percent to P19 billion on improvements across its core businesses.
Revenues slid by 8 percent to P360.9 billion as weaker crude prices dragged Petron Corp., its fuel and oil segment.
SMGP likewise had a lower contribution due to the deconsolidation of Ilijan.
Resilient
“Despite some challenges, our businesses remained resilient and continued to perform well. We will keep moving forward, grow responsibly, and make sure more Filipinos benefit from the progress we are making,” said SMC chair and CEO Ramon Ang.
Broken down, San Miguel Food and Beverage Inc. posted a net income of P11.6 billion, up by 16 percent.
San Miguel Foods enjoyed gains from poultry sales and sustained demand for processed meats and dairy. Its revenues rose by nearly a tenth to P46.3 billion, while its bottom line grew by 83 percent to P3 billion.
SMGP, meanwhile, saw a 4-percent decline in revenues to P42.5 billion because of Ilijan’s deconsolidation. However, this was offset by gains from its other power plants and battery energy storage systems.
Petron Corp. booked a 2-percent gain in profit to P4 billion on strong domestic sales. Revenues dipped by 14.6 percent to P227.6 billion because of weaker export sales.
