SMC books PHP 21.9B gain from landmark gas power alliance with MGEN and AboitizPower

San Miguel Corporation (SMC) has recognized a PHP 21.9-billion gain from its gas power partnership with Meralco PowerGen Corp. (MGEN) and AboitizPower’s Therma NatGas Power, Inc. (TNGP), following a revaluation of its remaining stakes in major gas-fired power assets in Batangas.

In its amended second-quarter report filed with the Securities and Exchange Commission (SEC) on October 8, SMC said the gain came from the fair-value remeasurement of its retained 33% interest in South Premiere Power Corp. (SPPC), Excellent Energy Resources, Inc. (EERI), and Ilijan Primeline Industrial Estate Corp. (IPIEC).

The revaluation was prompted by the completion of a 67% investment by MGen and TNGP through their joint venture, Chromite Gas Holdings, Inc. (CGHI), on January 27, 2025. The transaction also covered the joint acquisition of Linseed Field Corp., owner of the Batangas Liquefied Natural Gas (LNG) Terminal that supplies the 1,278-megawatt Ilijan Power Plant and the 1,320-MW Batangas Combined Cycle Power Plant under construction.

SMC recorded the PHP 21.9-billion revaluation gain under “Other Income,” along with an additional PHP 22.3 billion booked in equity reserves from the redemption of preferred shares by the deconsolidated subsidiaries.

These one-time gains helped lift SMC’s consolidated net income to PHP 66.8 billion in the first half of 2025, nearly five times higher than the PHP 13.6 billion recorded a year earlier.

For the period, SMC’s energy segment, led by San Miguel Global Power, posted PHP 75.7 billion in sales, down from PHP 94.9 billion in the same period last year. Despite lower revenues, the segment remained a key contributor to group performance, supported by revaluation gains from the transaction.

The Philippine Competition Commission (PCC) approved the joint acquisition in December 2024, subject to commitments promoting transparency and fair competition in the power market.

SMC also disclosed that around PHP 280 billion worth of power assets remain pledged as collateral for project finance loans, reflecting the scale of its energy and infrastructure investments.

The alliance among SMC, Meralco, and AboitizPower consolidates over 2,600 megawatts of gas-fired capacity under local ownership, a move seen as pivotal in supporting the country’s long-term LNG and power supply.