San Miguel looking at Php215B for power investments

smc global power edited

SMC Global Power Holdings, the power arm of San Miguel Corporation (SMC), is eyeing around Php 215 billion worth of capital expenditures this year for long-term investments. 

In a disclosure to the Philippine Dealing and Exchange Corporation on Monday, SMC Global Power said that the “Amount authorized but not yet disbursed for capital projects is approximately P214,795,314 as [of] December 31, 2021.” 

“The said projects will be carried forward to the next quarter until their completion. The funds to be used for these projects will come from available cash and proceeds from outstanding long-term loans and issued SPCS [senior perpetual capital securities],” the company said. 

Among those projects include the construction of power plants, which are mostly high-efficiency low emission technologies, liquefied natural gas (LNG), and battery energy storage systems (BESS) that are in line with the company’s expansion projects, and the acquisition of fixed assets needed for the normal operations of the business. 

SMC Global Power had said at the start of 2022 that it would install 690 megawatts (MW) in BESS capacity early this year. The company is also developing LNG power plant projects in Batangas, Negros Occidental, Cebu, and Leyte.   

SMC Global Power has around 4,714MW of combined capacity. Data from the Energy Regulatory Commission said that the Philippines’ second largest power generation company currently contributes 20% to the country’s total grid capacity. The company particularly contributes 27% to the Luzon Grid’s capacity, as well as eight percent to the Mindanao Grid. 

The company posted a Php16 billion net income in 2021, a 15% drop year-on-year.