San Miguel Corporation’s (SMC) power business recorded a strong performance in the first quarter of 2025, fueled by higher margins, growing participation in ancillary services and the reserve market, and the completion of a major asset divestment.

According to its latest investor disclosure, SMC reported that San Miguel Global Power Holdings (SMGP) posted an operating income of Php10.7 billion for the first quarter, up 21% year-on-year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached Php16.3 billion, marking a 35% increase from the same period last year.

Profitability was driven by contracted capacities with fuel pass-through arrangements, as well as revenues from ancillary services to the National Grid Corporation of the Philippines (NGCP) and participation in the Reserve Market—both critical for maintaining grid reliability as the country transitions toward more renewable energy sources.

SMGP posted a net income of Php26.4 billion, a significant surge compared to Php1.5 billion in the same quarter last year. This figure, however, was primarily driven by one-off gains from the January 27, 2025 sale of a 67% stake in its gas-fired power plants to Chromite Gas Holdings, Inc.

Excluding extraordinary items, San Miguel’s core financials reflect a solid recovery, with the company noting a 31% increase in core net income at the consolidated level, driven by improved cost efficiency and disciplined operations across segments.

While net sales for the power unit dipped slightly to Php42.5 billion from Php44.1 billion a year earlier, the decline was offset by stronger margins and improved contractual terms.

SMC also reaffirmed its commitment to the Philippines’ clean energy goals, with SMGP actively expanding its Battery Energy Storage System (BESS) network and renewable energy portfolio. This includes ongoing development of hydropower and solar projects, aligned with the government’s Green Energy Auction Program.

These initiatives are part of SMC’s broader strategy to diversify its energy mix, reduce carbon emissions, and strengthen national energy security.

SMC President and CEO Ramon S. Ang reiterated the conglomerate’s commitment to supporting the country’s energy transition while continuing to deliver reliable and affordable electricity to Filipino consumers.

What opportunities or challenges do you see ahead for SMC’s power business? Share your insights, questions, or perspectives with us in the comments or connect directly—we’d love to hear from you.

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