San Miguel power unit swings to P9-b income
By Alena Mae S. Flores – November 19, 2023, 7:35 pm
from manilastandard.net
San Miguel Global Power Holdings Corp., a power subsidiary of San Miguel Corp., said it posted a net income of P9.088 billion in the first nine months of 2023, a turnaround from a net loss of P2.635 billion in the same period last year which was affected by net unrealized foreign exchange losses.
SMCGP said in a disclosure to the Philippine Dealing & Exchange Corp. consolidated revenues in the first three quarters reached P125.213 billion, down by 25 percent from P166.147 billion a year ago on lower offtake volumes.
Offtake volumes declined 19 percent to 17,237 gigawatt-hours (GWh), following the SMCGP’s cessation of power supply to Manila Electric Co. under their 670-megawatt (MW) contract capacity and eventual termination of the agreement.
SMCGP said the decline was partially offset by its 480-MW emergency power supply agreements (EPSA) with Meralco, which took effect in April 2023.
The company said the start of commercial operations of its battery energy storage facilities in August 2023 contributed additional revenues from ancillary service which further mitigated the decline in bilateral revenues.
Cost of power sold decreased 34 percent to P97.464 billion in the nine-month period from P147.964 billion last year on declining coal prices and reduction in purchases from the spot market.
Selling and administrative expenses increased 14 percent from P3.909 billion to P4.465 billion on account of higher taxes and licenses and higher personnel-related expense due to the continuing business activities and expansion.
SMCGP said other operating income was lower by P8.885 billion due primarily to the gain on sale of properties previously acquired as potential sites for its several power plant expansion projects executed in 2022.
Consolidated income from operations reached P23.337 billion, almost at par with the same period last year with improved margins on contracted volumes.
Interest expense and other financing charges amounted to P12.354 billion amid the increase in global and local interest rate indices and by the new loans.
