SMC reports 26% jump in income

Conglomerate San Miguel Corp. (SMC) said operating income rose last year, driven by its core food and beverage businesses as well higher margins from oil refiner Petron Corp.

SMC said in a statement that operating profit in 2015 rose 41 percent to P78.7 billion over the same period in 2014. Total sales revenue, however, was down 13 percent to P674 billion due to the steep drop in crude oil prices from $111 per barrel in 2014 to $31 per barrel toward the end of 2015.

SMC said that was coupled with the scheduled major maintenance shutdown of the Malampaya gas facilities and the downtime resulting from the scheduled major maintenance of the Ilijan and Sual power plants.

SMC’s net income, before foreign exchange translation, hit P38.2 billion, up 26 percent from 2014.

Flagship unit San Miguel Brewery Inc. posted consolidated revenue of P82.4 billion,  up 4 percent, as domestic operations registered volume and revenue growth of 3 percent and 9 percent, respectively.

Consolidated operating income hit P22.6 billion, up 2.5 percent, while net income reached P13.5 billion. Miguel R. Camus