SMC reports first-half profit of P10.8 B

MANILA, Philippines—San Miguel Corp. grew its first semester net profit by 72 percent year-on-year to P10.8 billion on the back of earnings from its power generation and oil refining businesses.

Six-month cash flow as measured by earnings before interest, taxes, depreciation and amortization (EBITDA ) rose by 117 percent to P40.2 billion while group-wide revenues surged by 168 percent to P263.3 billion. Consolidated operating income was up by 136 percent to P31.5 billion.

“We are continuously benefitting from our strategic shift to high-growth businesses. We are confident we can bring in more value to our shareholders from the company’s ongoing diversification,” SMC chair Eduardo Cojuangco Jr. said.

Its energy unit San Miguel Global and oil refining firm Petron Corp. together accounted for 63 percent of San Miguel’s total revenue pie.

San Miguel’s energy arm reported a 72-percent jump in consolidated operating income for the first half to P7.7 billion.

Petron generated a six-month net profit of P6 billion on the back of a 62-percent surge in operating income to P10.8 billion. This was attributed to strong sales of higher-margin petrochemical products along with an increase in export volumes.

Traditional businesses also continued to be a major contributor to San Miguel’s total turnover.

Higher beer volumes in both domestic and international markets together with effective sales initiatives boosted San Miguel Brewery’s consolidated revenue by 7 percent to P35.6 billion. Operating income likewise went up by 8 percent to P10.2 billion.