SMC aims to complete key projects by 2016

Conglomerate San Miguel Corp. expects to complete three major toll road projects before the end of President Aquino’s term in 2016, and build new power plants with a total capacity of 3,000 megawatts in the years ahead, depending on market demand.

During SMC’s annual stockholders meeting yesterday, company president Ramon S. Ang said the conglomerate was “on track to hit another year on solid growth.”

SMC expects revenues from new business to grow by 9 percent this year, faster than the 7 percent growth posted last year, Ang said. Earnings from traditional businesses like food and beverage, on the other hand, are seen to grow by 5-10 percent this year, much better than the 2 percent growth in 2013.

For the new businesses, Ang said there would be some upside coming from the oil refinery upgrade of Petron Corp. as well as incremental revenues from the consolidation into its books of the Southern Tagalog Arterial Road (STAR) tollway.

Of about P750 billion revenues posted last year, 72 percent was accounted for by new businesses. Because of the faster growth of new businesses, he said its share to total turnover this year could grow to 76 percent.

For the traditional businesses of food and beverage, Ang said this year would show some recovery after taking a hit from higher excise tax rates.

The three tollroad projects that SMC intends to complete by 2016 are the North-South Luzon Expressway connector road, the Ninoy Aquino International Airport expressway linkage, as well as the full length of Tarlac-Pangasinan-La Union Expressway (TPLEx).

Phase 1A of TPLEx, the first greenfield tollway project in SMC’s infrastructure portfolio, was opened in late 2013. Last April, it completed Phase 1B up to Rosales, Pangasinan, bringing to 47 kilometers the operational length of the tollroad.

TPLEx is slated for completion by end-2015, about three years ahead of schedule, Ang said.

Both the South-Luzon expressway connector road and Naia Expressway are also expected to be completed by early 2016, Ang said.

SMC has stated that the construction of two new power plants—one in Malita, Davao and another one in Limay, Bataan —which will boost its total installed capacity by about 900 MW. Ang said the goal is to put up 3,000 MW of additional capacity to meet market demand.