The tollway unit of San Miguel Corp. reported net income rising 27 percent in the first six months this year on account of higher toll revenue and lower expenses.
SMC SLEX Inc., formerly South Luzon Tollways Corp. (SLTC), posted net income of P2.01 billion in the January to June period from P1.58 billion last year.
Revenue from toll operations totaled P3.41 billion, up 10 percent from P3.12 billion last year.
SLEX reported average daily traffic (ADT) of 351,024, lower by 5 percent from 368,683 ADT, reflecting the impact of its Seamless Project which removed the TR3 toll plaza and its open system with a separate traffic count.
“The reduction in traffic count under the Seamless Project has no impact on the toll revenue,” the SLEC-SLEX said.
Its cost of service went down 3 percent to P877.72 million mainly due to lower repair and maintenance costs.
SMC SLEX has allocated P7.4 billion as capital expenditures (capex) this year to partially finance the construction of an expressway from Batangas to Lucena and for the repair and maintenance of the South Luzon Expressway (SLEX).
The company said its P6.77 billion budget this year will be used to finance the TR4 Project and the SLEX widening project.
SMC SLEX in March 2019 started the construction of the 66.74-kilometer SLEX Toll Road 4 that would connect Sto. Tomas, Batangas to Lucena City, Quezon.
The toll road will shorten the travel time from Sto. Tomas, Batangas to Barangay Mayao in Lucena City from the usual three hours to just 45 minutes.
The P26.1-billion project is expected to be completed by 2026. TR4 is a part of SLTC’s 30-year concession lasting until 2036.
The toll road is divided into six sections that include the Sto Tomas, Batangas to Makban in Laguna (11.32 km); the Makban to San Pablo City (12.75 km); San Pablo to Tiaong in Quezon (7.5 km); the Tiaong to Candelaria (15 km); the Candelaria to Tayabas (10.21 km); and the Tayabas to Lucena (9.96 km).
SMC SLEX also allocated P102.4 million for road and facilities repair and another P582 million to acquire equipment for its toll collection system.
A total of P1.26 billion has been spent to date for periodic repair and restoration activities.
