San Miguel Global Power (SMGP) anticipates an increase in revenue this year and the next as the company added another capacity to its 300-megawatt hour (MWh) Masinloc battery energy storage system and 600 megawatts (MW) Mariveles coal plant, says financial research firm CreditSights.
In a report by the Philippine Star, CreditSights said SMGP’s revenues are expected to increase by 14% this year and experience a 25% growth by 2025. Additionally, SMGP’s EBITDA was predicted to surge by 35% in 2024 and 21% in 2025.
Meanwhile, the Batangas plant of SMGP, expected to commence operations in early 2025, is set to deliver 1.2 gigawatts (GW) of power under a contractual agreement with the Manila Electric Company (MERALCO).
According to CreditSights, its analysis is based on the assumption that SMGP would secure extensions for the current emergency power supply agreements (EPSAs) with MERALCO, extending beyond 2024.
They further anticipated these extensions to feature a full-cost pass-through mechanism. Additionally, the research firm assumed successful negotiations for the re-contracting of the remaining 190 MW of uncontracted power supply, incorporating a full-cost pass-through mechanism as well.
The research firm also lauded the accomplished contractual partnerships securing SMGP’s new plants, emphasizing that these agreements would contribute to a more assured and predictable revenue outlook.
Notably, two of these bids were submitted by SMGP subsidiaries—specifically, Excellent Energy Resources Inc. and Mariveles Power Generation Corporation—both securing the lowest offers for the supply of 1,200 MW and 300 MW, respectively, through a competitive selection process (CSP).
