Conglomerate San Miguel Corp. (SMC) reported a net income of P48.6 billion in 2019, flat from the level eked out the previous year, due to a slump in earnings from the oil and food businesses.
This net profit level includes earnings attributable to minority interest.
Oil refining firm Petron Corp. grappled with volatile international prices that resulted in significantly weaker margins in 2019. A major shutdown of its Bataan refinery due to an earthquake, the implementation of the second tranche of the increase in excise and competition from small players or “white stations” also weighed down on operations.
But the slowdown in Petron’s earnings was offset by traditional businesses under consumer giant San Miguel Food and Beverage as well as the energy business under SMC Global Power Holdings Corp.
In a press statement on Thursday, SMC reported consolidated revenues amounted to P1.02 trillion in 2019, almost similar to year-ago results. SMC’s cash flow for the year amounted to P162.4 billion, up by 3 percent from the previous year.
Consolidated operating income ended slightly lower at P115.7 billion due to a challenging operating environment faced by Petron and San Miguel Foods.
The food business was affected by lower poultry prices during the first half of the year and the impact of the African swine fever on hogs costs alongside startup expenses of new facilities.
Overall, San Miguel Food and Beverage still grew net profit by 6 percent to P32.3 billion in 2019 due to the strong performance of the beer business.
SMC Global Power also grew its net profit last year by 73 percent to P14.4 billion.
Power revenues and operating income rose by 12 percent and 8 percent to P135.1 billion and P36 billion, respectively.
In the case of Petron, it was earlier reported its net income had fallen by 69 percent to P2.3 billion.
Meanwhile, SMC Infrastructure’s operating toll roads posted a combined 5-percent growth in vehicular traffic volume compared to the same period the previous year. —DORIS DUMLAO-ABADILLA