SMC Global Power Holdings Corporation recorded a 75% drop in its net income to Php1.93 billion in the first quarter of 2022 from Php7.78 billion in the same period last year, based on parent firm San Miguel Corporation’s (SMC) disclosure to the Philippine Stock Exchange on Friday.
Income from operations also went down by 28% to Php6.07 billion from Php8.42 billion previously. The company did not specify any reason for the decrease in profit and operating income.
However, the company’s consolidated revenues rose by 57% to Php 43 billion from Php27.4 billion year-on-year. The increase was attributed to higher average realization prices for its bilateral contracts; higher prices from the Wholesale Electricity Spot Market; and higher volumes from increased nominations from the Manila Electric Company (MERALCO), other distribution utilities, and industrial customers.
Overall, SMC’s consolidated income jumped by 25% to Php40.1 billion from Php32.2 billion in the same period last year. Meanwhile, the conglomerate’s recurring net income inched up three percent to Php13.9 billion from Php13.6 previously, as it benefited from Republic Act 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
“While we are still seeing mixed results from our businesses due to the Omicron surge disruption at the start of the year and significant increases in raw material prices, we are well-positioned to build on our gains,” SMC President and CEO Ramon Ang said in a statement.
Earlier, SMC Global Power’s sister firm Petron recorded a massive 108% increase in its first quarter net income to Php3.59 billion from Php1.73 billion year-on-year.
SMC Global Power is the country’s second largest power generating firm, while Petron is the country’s largest oil company.