New businesses to fuel SMC revenues in 3-5 yrs

Diversified conglomerate San Miguel Corp. ( SMC) said it expects three- fourths of its revenues to come from new businesses in the next three to five years.

Toll roads, power and petroleum businesses will account for bulk of SMC’s revenues even as it trains its eyes on projects abroad, its top executive said.

“I think 75 percent of the revenues will come from new businesses,” said SMC president and chief operating officer Ramon S. Ang.

So far, around 70 percent of the company’s revenues are already coming from new businesses, said SMC chief finance officer Ferdinand Constantino.

Among the new businesses of SMC include power producer SMC Global Power Corp., oil refi ner Petron Corp. and a minority stake in power distribution giant Manila Electric Co. (Meralco). SMC is also operating the Caticlan airport and the Skyway as it builds the Tarlac- Pangasinan- La Union Expressway and the P15.52-billion Ninoy Aquino International Airport ( NAIA) Expressway.

However, Ang said the conglomerate is willing to sell its 32.8-percent in Meralco, which is controlled by businessman Manuel V. Pangilinan.

“Our problem is, we are still looking for projects because we have so much proceeds that are coming in,” Ang said.

Ang said only oil and natural gas projects are big enough for SMC.

The conglomerate earlier said it is investing $25 billion in a foreign oil and natural gas company.

In the first quarter, SMC’s profits sank by half to P4.2 billion in the January to March period from P8.5 billion a year ago, dragged by the impact of the sin tax, easing oil prices and lower foreign exchange gains.

SMC is undergoing a five- year, $ 34.83- billion investment plan that will make it the largest investor in the Philippines. The conglomerate said it will spend an average of P283.52 billion every year until 2017.