Unrealized losses arising from valuation adjustments of its foreign currency-denominated long-term debt helped the conglomerate San Miguel Corp. to report its 2022 income falling 44 percent to only P26.76 billion from P48.15 billion in 2021.
Revenues rose 60 percent to P1.5 trillion from previous year’s P941.19 billion that exceeded its 2019 pre-pandemic result of P1 trillion.
Consolidated income from operations rose 10 percent to P134.5 billion from the previous year’s P121.89 billion, driven by sustained performance of key businesses such as Petron Corp., San Miguel Food and Beverage Inc., San Miguel Packaging, SMC Infrastructure, as well as group-wide cost management efforts to mitigate the effects of rising raw materials costs, inflation pressures, and forex movements.
“Our strong top line performance is a clear indication of our economy’s continued recovery as well as the strong consumer demand for our products and services. While challenges remain, we’re confident in the measures and programs we’ve put in place to weather these. We remain strongly committed to executing the long-term growth strategy we’ve laid out for our company, that will also significantly benefit our country,” San Miguel president and CEO Ramon S. Ang said.
San Miguel Global Power Holdings Corp. reported consolidated revenues of P221.4 billion, up 66 percent from P133.7 billion the previous year, brought about by an increase in average realization prices, higher spot sales prices, and improved power nominations.
Offtake volumes reached 27,402 gigawatt hour, higher by 181 Gwh from the previous year.
Operating income, however, declined by 22 percent to P28.9 billion compared to P36.8 billion registered the previous year, reflecting the impact of increases in fuel costs, higher Wholesale Electricity Spot Market (WESM) price and the deration of the Ilijan power plant.
By end-December 2022, coal prices reached $404.07 per metric ton, a long way from $170.23 per metric ton at the end of 2021.
Net income amounted to P3.13 billion, down 80 percent from the previous year’s P15.97 billion.
Petron’s recovery, meanwhile, continued throughout the year as it posted combined sales from its Philippines and Malaysia operations of 112.8 million barrels, up 37 percent compared to 2021. Domestic volumes climbed 43 percent as demand from the industrial and aviation sectors recovered.
It reported consolidated net income reaching P6.7 billion, or 9 percent better than the P6.1 billion it reported in 2021.
SMC Infrastructure also delivered consolidated revenues of P29 billion, 47 percent higher than 2021 level. Traffic volume at all operating toll roads increased 25 percent, sustaining its upward trend.
Operating income grew more than double to P14.2 billion from the previous P6.78 billion owing to higher traffic volume.
