SMC earnings weighed down by Petron, SMFB

Published August 8, 2019, 12:00 AM

by manilabulletin_admin

By James A. Loyola

Diversified conglomerate San Miguel Corporation (SMC) reported a 5 percent dip in net income to P26.59 billion in the first half of 2019 from P27.5 billion in the same period last year.

A logo of San Miguel Corporation (SMC) is seen at a main office in Ortigas city. (REUTERS/Romeo Ranoco / MANILA BULLETIN)
A logo of San Miguel Corporation (SMC) is seen at a main office in Ortigas city. (REUTERS) MANILA BULLETIN)

In a statement, the firm said consolidated revenues inched up 2 percent to P509.5 billion for the first six months of the year, propelled by strong volumes across most of its businesses.

Consolidated operating income however ended lower by 14 percent at P57.6 billion, as Petron continued to be weighed down by prevailing movements in world crude oil prices and weak refining margins.

Petron’s Bataan refinery was also temporarily shut down during this period for its scheduled major maintenance and additional repairs needed following the April 22 earthquake.

San Miguel Pure Foods was likewise affected by rising raw material costs. The strong performance of the Beer, Spirits, and Power businesses improved revenues.

San Miguel Food and Beverage, Inc.’s consolidated revenues reached P151.1 billion, 10 percent higher than the same period last year, mainly on account of strong domestic volumes for Beer and Spirits, which grew 11 percent and 17 percent, respectively.

SMC Global Power Holdings Corp. posted consolidated off-take volume growth of 14,635 Gwh during the first semester, 28 percent higher than in the same period in 2018.

This is on account of new bilateral contracts from the additional power generated by the Masinloc, Limay, and Malita power plants, and improved plant capacity factors from the Sual and Ilijan facilities.

Petron Corporation’s first semester performance continued to be affected by volatile movements in world crude oil prices and weak refining margins.

Demand in the Philippine market also slowed down due to the effect of the second tranche of the excise tax increase under the Train law, resulting in consolidated revenues of P254.8 billion, 7 percent lower than last year.

SMC Infrastructure’s operating toll roads posted a combined 6 percent vehicular traffic volume growth compared to the same period last year.

Consolidated revenues amounted to P12.3 billion, slightly higher than the previous year.

 
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