SMC Global Power Holdings Corp.’s board approved the issuance of redeemable perpetual securities of up to $500 million in favor of parent company San Miguel Corp.
SMCGP informed the Philippine Dealing & Exchange Corp. the issuance of the securities would be under terms and conditions determined by the management as the most beneficial to the company. The company did not provide additional details.
SMCGP posted a net loss of P2.63 billion in the first nine months of 2022, a turnaround from a net income of P13.693 billion in the same period in 2021. The company attributed the losses to lower gross margin and net unrealized foreign exchange losses amounting to P16.174 billion in the first three quarters of 2022.
SMCGP suffered from losses over high fuel costs, gas constraints of two power subsidiaries and inability to raise rates after the Energy Regulatory Commission rejected its joint petition with Manila Electric Co.