Impact of unrealized forex losses drags SMC’S income

CONGLOMERATE San Miguel Corp. said its net income fell 62 percent during the nine months of the year through September to P12.94 billion from last year’s P34.15 billion on the impact of the unrealized foreign exchange loss.

Consolidated revenues for the period reached P1.1 trillion, up 71 percent from last year’s P650.6 billion, surpassing pre-pandemic full year 2019 revenues of P1 trillion.

Consolidated income from operations rose 24 percent to P108.5 billion from the previous P87.73 billion, mainly driven by the continuing strong performance of Petron Corp., food and beverages, packaging and infrastructure combined with group-wide cost initiatives which mitigated the continuing challenges of increasing raw material costs, elevated coal prices, inf lation and forex movements.

“The continuing increase in demand for our products and services has been very encouraging despite the challenging businesses environment. This inspires us to continue with our efforts and to remain focused on achieving full recovery,” San Miguel President and CEO Ramon S. Ang said.

The off-take volumes of SMC Global Power Holdings Corp. for the 9-month period reached 21,336 gigawatt hours, a 4-percent growth from last year mainly driven by increase in demand from distribution utilities.

Consolidated revenues amounted to P166.1 billion, up 77 percent from P93.9 billion in the previous year supported by the offtake volume growth and the increase in average bilateral rates.

It reported a net loss of P2.63 billion from last year’s income of P13.69 billion.

The company said it experienced unprecedented spikes in coal prices which increased by almost eight times, from just P3,340 per metric ton ($65MT at $1=P51.30) at contract execution date rising to P25,430/MT ($434/MT at $1=P58.59) at the end of September, as well as the significant derations in the capacity of the Ilijan Plant.

SMC Global Power incurred incremental supply costs of about P18 billion for the period January to September covering the 1,000 megawatt of capacity contracted to Meralco alone.

Consolidated power operating income declined by 28 percent to P20.5 billion.

Meanwhile, traffic volume of operating toll roads sustained its upward trend, increasing by 31 percent and delivering revenues of P20.9 billion, a 57 percent growth from the previous year’s P13.27 billion. Operating income climbed to P10.1 billion, more than double than last year’s P4.31 billion amid higher traffic volume.