SMC, Petron post hefty profits
Conglomerate San Miguel Corp. and oil refining unit Petron Corp. registered hefty profits in the first nine months of the year on higher revenues.
San Miguel said recurring net income rose 21 percent to P43.8 billion from P36.3 billion on higher revenues from core food beverage and packaging businesses.
Recurring net income excludes the one-time gain from the sale of telecommunication assets last year.
San Miguel said in a statement nine-month revenues increased 20 percent to P597 billion, while the group’s soon-to-be consolidated food and beverage business accounted for more than 30 percent of sales.
Consolidated operating income reached P82.8 billion, an increase of 13 percent from last year on sustained sales growth across its businesses and a group-wide execution of an effective fixed cost management strategy.
San Miguel early this week announced plans to consolidate all traditional food and beverage businesses under a holding company through a share swap that is seen to result in significant synergies and unlock the value of units under it.
San Miguel will fold in its beer and liquor business San Miguel Brewery and Ginebra San Miguel under San Miguel Pure Foods and Co. Inc.
San Miguel Yamamura Packaging Group’s revenues and operating income, meanwhile, both grew 13 percent to P22.4 billion and P2.2 billion, respectively.
SMC Global Power’s revenues amounted to P62.1 billion, up two percent on year, on higher average realization and spot market prices.
Petron said net income jumped 58 percent in the first nine months of 2017 on higher sales from the Philippines and Malaysia.
The country’s leading oil refining and marketing company posted a consolidated net income of P11.8 billon in the January-to-September period from P7.4 billion in the same period last year.
“The impressive result was driven by its continued focus on high-value segments and sustained sales volumes from its Philippines and Malaysian operations,” Petron said.
Combined sales volumes hit 80.2 million barrels in the first three quarters of the year, slightly higher than 79.3 million sold in the same period in 2016.
The company said sales volumes would have been higher if not for scheduled maintenance. Petron’s Bataan refinery was running on maintenance mode below optimum capacity for 35 days in the second quarter and 18 days in the third quarter. Malaysian volume increased 9 percent.
Petron’s consolidated volumes grew 8 percent as a result of network expansion in both markets coupled with innovative loyalty programs. Lubricant sales, meanwhile, jumped 15 percent as the company’s high-performance engine oils remain a top choice among motorists. Gasoline and Jet A-1 likewise saw double-digit volume increases at 15 percent and 11 percent, respectively.