Diversified conglomerate San Miguel Corp. reported a 48 percent decline in first-quarter net income after the absence of a massive one-time gain from the previous year masked an otherwise robust operational performance across its energy and infrastructure portfolios.

In a statement, the firm said net income for the first three months of the year fell to ₱22.5 billion from ₱43.4 billion in the same period in 2025.

The year-on-year drop was primarily attributed to a ₱21.9 billion windfall recorded in the first quarter of last year following the partial sale of power assets. Earnings were further weighed down by foreign exchange losses during the current period.

Despite the bottom-line retreat, the conglomerate’s core operations showed significant momentum. Consolidated operating income jumped 31 percent to ₱59.6 billion, fueled by margin expansion in the energy business that helped buffer headwinds at its oil refining unit, Petron Corp.

Group-wide revenues climbed 19 percent to ₱428.3 billion, driven by volume growth in the fuel, power, and food sectors.

“Our businesses performed well in the first quarter, supported by steady demand and the hard work of our teams across the group,” Ramon S. Ang, San Miguel chairman and chief executive officer, said.

He noted that while global macroeconomic conditions remain "challenging," the group intends to remain disciplined in its operations and investment strategy.

The group’s energy arm, San Miguel Global Power, saw income from operations surge 163 percent to ₱28.1 billion. While revenue rose 26 percent to ₱53.6 billion on the back of new battery energy storage system (BESS) facilities and fresh power supply agreements, offtake volumes actually declined 13 percent to 6.5 million MWh. This volume dip reflects the deconsolidation of the Ilijan and Batangas power plants.

In contrast, Petron Corp. saw its net income tumble 56 percent to ₱1.8 billion. The fuel retailer struggled with lower refinery output across its Philippine and Malaysian operations, even as global price movements supported the group’s overall top line.

The food and beverage unit, San Miguel Food and Beverage Inc., posted a modest 2 percent rise in net income to ₱11.8 billion. While spirits and food segments showed gains, the core beer business remained stable.

Meanwhile, the infrastructure division reported a 7 percent revenue increase to ₱10.4 billion as average daily traffic across its toll road network reached 1.1 million vehicles. Operating income for the infrastructure group rose 12 percent to ₱6.0 billion, as higher traffic volumes effectively offset rising operational costs. (James A. Loyola)