SMC doubles profit to P35.3B

Conglomerate San Miguel Corp. doubled its six-month net profit to P35.3 billion on higher earnings across all businesses alongside one-time gain from the sale of its telecommunication business.

Including earnings attributable to non-controlling interest, SMC’s comparative net income in the first semester of last year hit P16.92 billion.

SMC reported sustained growth in its core businesses, better refining margins for oil refining unit Petron Corp. and higher returns from power and infrastructure subsidiaries.

Operating income for the period rose by 19 percent year-on-year to P48.8 billion from last year while net income from continuing operations grew by 33 percent to P23.5 billion.

The sale of its telcom business resulted in a one-time gain of P11.8 billion, representing mainly recovery of costs/losses, interest expenses and provisions incurred in previous years.

Group-wide cash flow reached P63.4 billion, 21 percent higher than year-ago level.

Power unit SMC Global Power reported a consolidated off-take volume of 9,264 Gwh for the first half, 14 percent higher than a year ago. As a result, consolidated revenue rose by 2 percent to P41.1 billion. With lower generation costs and an improvement in generation volume, operating income rose by 15 percent to P15.7 billion.

Infrastructure unit San Miguel Holdings Corp. posted consolidated revenue of P9.78 billion, up 14 percent from a year ago. Operating income of this unit rose by 9 percent to P5 billion.

SMC said the construction of major infrastructure projects remained on track.

Other operating units performed in the first semester as follow:

• San Miguel Brewery (SMB) booked a 20-percent year-on-year growth in first semester net profit to P8.25 billion.
• San Miguel Pure Foods Co. Inc. posted a 37-percent growth in six-month net profit to P2.5 billion.

•Petron Corp.’s consolidated net income rose by 55 percent to P5.3 billion in the first half.