San Miguel earnings drop 5% to P26.2 B in H1

MANILA, Philippines — Conglomerate San Miguel Corp. (SMC) reported lower earnings in the first half as fuel and oil unit Petron continued to be weighed down by prevailing movements in world crude oil prices and weak refining margins.

SMC’s net income in the first semester dipped by five percent to P26.2 billion from P27.6 billion during the same period last year.

Consolidated operating income ended 14 percent lower year-on-year at P57.6 billion as Petron’s first half performance continued to be affected by volatile movements in world crude oil prices and weak refining margins.

Petron’s Bataan refinery was also temporarily shut down during the period for a scheduled major maintenance and additional repairs following the April 22 earthquake.

SMC said its food and beverage unit was likewise affected by rising raw material costs.

Meanwhile, strong volumes across most of its businesses managed to push consolidated revenues by two percent to P509.5 billion, according to SMC.

SMC said the strong performance of its beer, spirits, and power businesses fueled revenues.

SMC Infrastructure’s operating toll roads posted a combined six percent vehicular traffic volume growth compared to the same period last year.

Consolidated revenues amounted to P12.3 billion, slightly higher than the previous year.

Last July 22, the 3.7 km segment of Skyway Stage 3 from Buendia up to Plaza Dilao in Paco, Manila was partially opened to the public to help ease traffic congestion.

The Swiss Challenge phase also ended last July 31 with no challenger for SMC’s proposed New Manila International Airport.