Metro Manila (CNN Philippines, November 7) — Diversified conglomerate San Miguel Corporation booked a ₱39.7 billion net income for the first nine months of 2019, supported by gains from its power and infrastructure units.
The listed firm saw profits dip by a fourth from the ₱52.4 billion net income it reported for January-September 2018, as its fuel and food manufacturing businesses saw narrower margins.
Consolidated revenues hit ₱758.6 billion as of end-September based on SMC’s latest disclosure, a drop from ₱761.2 billion reported a year ago.
Operating income slipped by 9 percent to ₱88.7 billion.
“SMC’s fuel unit Petron Corporation continues to be weighed down by volatile global crude oil prices and weak refining margins, while San Miguel Foods faced headwinds from rising raw material costs,” the company told the local bourse.
Fuel refiner and distributor Petron Corporation saw revenues slip by 9 percent to ₱381.7 billion, which the firm attributed to “volatile” global crude oil prices. Weaker demand for petroleum products and weak refining margins also put pressure on its bottom line, which slid 38 percent lower to ₱13.9 billion year-on-year.
SMC President and Chief Operating Officer Ramon Ang said Petron “supports the government’s fuel-marking program” to block illicit trade. He earlier lamented smuggled fuel in the local market that supposedly allows other gas stations to sell by as much as ₱10 cheaper per liter.
Petron opened 100 new stations in the country and 38 more in Malaysia from January to September this year.
Another subsidiary, San Miguel Food and Beverage, Inc., reported a flat operating income ₱33.6 billion, citing the rising cost of raw materials. Despite this, revenues rose to ₱226.4 billion supported by increased sales of beer, spirits, and food items.
On the other hand, SMC Global Power Holdings Corporation pulled up the conglomerate’s profits as it brought in ₱11.4 billion, more than double from a year ago.
The firm provided 21,581 Gigawatt hours of supply as of September, 22 percent more than what it churned out in 2018. Full operations of SMC’s Masinloc plant, coupled with improved operations in Sual, Ilijan, and San Roque powered the company’s performance.
SMC Infrastructure also generated ₱9 billion from running toll roads in the country, driven by a 6 percent increase in vehicular traffic volume.
SMC runs the South Luzon Expressway (SLEX), which are the subject of calls to cut toll fees amid worse traffic in the area due to the construction of a new segment of the Skyway, which is another toll road leading to Metro Manila.
The Toll Regulatory Board said on Thursday that it has received the formal petition to slash the rate from Susana Heights to Sucat Road by ₱44, but has not yet acted on it.
SMC recently bagged the ₱734-billion deal to build and operate a new international airport in Bulacan.
READ: SMC rejects ‘unwarranted’ call to cut SLEX toll amid ongoing construction
