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Friday, March 29, 2024

SMC’s tollway unit raised net profit to P1.66b in six months

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The tollway unit of San Miguel Corp. posted a 10-percent increase in net income in the first half of the year on higher vehicle traffic. 

South Luzon Tollways Corp. said net income amounted to P1.66 billion in the first half of the year compared with P1.51 billion year-on-year. 

Revenues rose 4 percent to P3.14 billion in the first six months from P3.02 billion  in the same period last year. 

The company attenuated the growth in revenues to the  increase in traffic volume, driven by the sustained growth of residential and industrial areas backed by the government’s decentralization push to stimulate business activities in areas outside Metro Manila and amid expanding housing development and strong consumer socio-awtiviy in the Calabarzon area. 

“Apart from the industrial development in the area which gave rise to various industrial parks. Cavite and Laguna has become attractive to people looking for spacious housing facilities and veering away from condominium living which are offered at steep price in Metro Manila,” SLTC said. 

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These developments enhanced the volume for class 1 vehicles, according to SLTC. 

“Traffic volume for Class 3 vehicles also went up mainly due to the thriving Calabarzon, the second most densely populated region after NCR. Batangas in particular has the second largest international seaport in Luzon It serves as a main entry point for goods ad from the South and from international ports,” the company said.  

SLTC added it remained compliant with the terms of its concession agreement by providing sufficient funding for maintenance obligations under the Supplementary Toll Operation Agreement. 

“Provision for resurfacing and maintenance date amounted to P368.9 million with higher expected utilization due to projected maintenance works within 2019,” the company said.

SLTC in March 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.

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