SMC Global Power Holdings, the power generation arm of San Miguel Corporation (SMC), registered a 35% increase in its first half net income from Php12.2 billion from Php9.06 billion in the same period last year.
Based SMC’s disclosure to the Philippine Stock Exchange, the country’s second largest power generation company (genco), also reported a five percent increase in net sales to Php60.3 billion from Php57.2 billion year-on-year, as well as off-take volumes of 13,552 gigawatt-hours. Both figures were driven by higher spot volumes and improved nominations from customers.
Operating income, however, declined by five percent to Php17.2 billion from Php18.1 billion previously due to higher purchase volumes resulting from gas supply restrictions for the Ilijan power plant and outages in the Sual coal-fired power plant. Both plants contributed to the Red Alerts and rotational brownouts in Luzon from May 31-June 2.
SMC President Ramon Ang recently said its genco will focus on building new renewable energy (RE) and liquefied natural gas projects, as it decided to drop plans to build new coal projects in Quezon, Cebu, Negros Occidental, and the Davao Region. This comes in the wake of the government’s moratorium on the building of new coal plants.