SMC net income rose by 8% in Q1 to P2.3B

Conglomerate San Miguel Corp. chalked up P2.3 billion in net profit attributable to equity holders of parent in the first quarter, about 8 percent higher year-on-year, despite inventory losses incurred by oil refining arm, Petron Corp.

Including minority interest, net profit for the quarter amounted to P6 billion, slightly better than the level in the same period last year as the strong results of other core businesses and power units cushioned the impact of Petron’s weak performance.

In a statement, SMC reported a 6-percent growth in operating income to P16.6 billion. Consolidated cash flow based on earnings before interest, taxes, depreciation and amortization (Ebitda) rose by 4 percent to P22.4 billion.

San Miguel Brewery Inc.’s consolidated volumes grew by 2 percent to 47.4 million cases, with volumes from Philippine operations improving by 7 percent to 40.9 million cases. As such, sales revenues grew by 8 percent to P18.9 billion.

Operating income improved by 10 percent to P5.2 billion while net income was 20 percent higher at P3.3 billion.

Food unit San Miguel Pure Foods generated consolidated revenues amounting to P25.1 billion, a 4-percent improvement, on the back of higher volumes and better selling prices. Operating income grew by 10 percent to P1.47 billion while net income was also up by 7 percent at P911 million.

Hard liquor arm Ginebra San Miguel Inc.’s consolidated revenues improved by 2 percent to P3.67 billion. Operating income improved by 115 percent to P94 million.

San Miguel Yamamura Packaging Group’s revenues rose by 4 percent to P5.8 billion due to improved domestic sales of glass and paper products and higher exports. Operating income reached P479 million, 9 percent higher than last year.

SMC Global Power’s operating income improved by 3 percent to P6.8 billion despite lower bilateral volumes from the Ilijan plant as a result of the scheduled shutdown of the Malampaya natural gas facilities. Revenues amounted to P19.8 billion.

For Petron, consolidated volume grew by 10 percent to 22.9 million barrels with the expansion in its retail network, the acquisition of major accounts, and stronger supply sales. Domestic volumes improved by 20 percent to 14.3 million barrels.

Petron’s revenues for the quarter shrank by 31 percent to P86.7 billion, due to a significant decline in selling prices.

Benchmark Dubai crude averaged $52 per barrel, 50 percent less than the first three months of the previous year’s average of $104/barrel. Net income ended at P257 million amid an inventory loss of P3 billion.

Meanwhile, SMC reported higher contributions from San Miguel Holdings Corp. with the consolidation of South Luzon Expressway (SLEx) and Skyway starting March 2015. Collectively, SLEx, Skyway, Star, Tarlac-Pangasinan-La Union Expressway, and the Boracay Airport contributed P2.9 billion in revenues.

Construction of large-scale infrastructure projects such as the NAIAx project, Skyway Stage 3, and the Boracay Airport upgrade are proceeding as scheduled, SMC added.