SMC Global Power Holdings Corp., a unit of conglomerate San Miguel Corp., is looking at capital expenditures of about P215 billion for long-term investment projects.
“Amount authorized but not yet disbursed for capital projects is approximately P214,795 million [P214.795 billion] as of Dec. 31, 2021,” SMC Global said in a disclosure to Philippine Dealing & Exchange Corp. Monday.
The company said its commitments for capital expenditure projects were approved in prior years and the current year, but these projects were ongoing and were not yet completed as of end-December.
It said the projects involved the construction of power plants, mostly utilizing high-efficiency low emission technologies, liquefied natural gas and battery energy storage system in line with its expansion projects and acquisition of fixed assets needed for normal operations of the business.
“The said projects will be carried forward to the next quarter until their completion. The funds to be used for these projects will come from available cash and proceeds from outstanding long-term loans and issued SPCS [senior perpetual capital securities],” it said.
SMC Global said it continued to review and implement the necessary changes to its operations, business processes and capital expenditure plans given the global and local economic factors as a result of the COVID-19 pandemic.
SMC Global Power, together with its subsidiaries, associates and joint ventures, is one of the largest power companies in the country.
It controls 4,714 megawatts of combined capacity as of end-December coming from a diversified power portfolio, including natural gas, coal, renewable energy such as hydropower and recently BESS.
Based on the total installed generating capacities reported in the Energy Regulatory Commission Resolution on Grid Market Share Limitation, the company estimated that its combined installed capacity comprised about 20 percent of the national grid, 27 percent of the Luzon grid and 8 percent of the Mindanao grid as of end-2021.
SMC Global Power recorded a net income of P16 billion in 2021, down by 15 percent from P18.9 billion in 2020 even as net sales rose 16 percent to P133.7 billion from P115 billion.
The company plans to construct a 300-megawatt liquefied natural gas combined-cycle power plant in Negros Occidental and another 600- MW LNG facility at Keppel Cebu Shipyard in Cebu to provide baseload power to the Visayas grid.
SMC Global Power expects to spend about $1 billion to build the LNG project in Cebu.