SMC Global Power Holdings (SMCGPH), the power generating arm of San Miguel Corporation (SMC), posted a net income of Php7.78 billion in the first quarter of this year, 141% higher than the Php3.22 billion it posted in the same period last year.
Based on SMC’s disclosure to the Philippine Stock Exchange, however, SMCGPH registered a revenue Php27.4 billion for the first three months of 2021, three percent lower than the Php28.3 billion posted year-on-year. The decline was mainly due to COVID-19 quarantine restrictions and lower spot market sales, which were mitigated by higher average realization prices.
Operating income grew by eight percent to Php8.42 billion from Php7.82 billion previously due to lower fuel costs and operating expenses.
In a separate disclosure to the Philippine Dealing and Exchange Corporation (PDEX), meanwhile, SMCGPH said that its board has approved the issuance of up to $600 million worth of senior perpetual capital securities.
Perpetual bonds — such as senior perpetual capital securities — are fixed income securities with no maturity date and are not redeemable, or cannot be withdrawn. A major advantage, however, is that these regularly give interest payments forever. Petron, another SMC firm, recently offered senior notes worth $550 million.
SMCGPH, the country’s second-largest power generator, likewise plans to issue up to Php20 billion out of the remaining shelf-registered fixed rate bonds with a total value of Php60 billion, which was listed in the PDEX back in April 2019.
The power firm’s board has also approved “the distribution to the holder of the USD650 Million Redeemable Perpetual Securities which the Corporation issued on 15 March 2018, amounting to USD10,156,250, payable on 16 June 2021.”
Also approved was “the capital security distribution to holders of the $600 million Senior Perpetual Capital Securities which the Corporation issued on 21 January 2020, amounting to USD17,100,000, plus applicable taxes, payable on 21 July 2021.”
SMCGPH reported a 31% increase in its net income to Php18.9 billion in 2020 despite the pandemic. It also bagged two contracts from the Manila Electric Company (MERALCO) last February to supply 1,800 megawatts to its franchise area.