San Miguel revenues down by 13% last year

San Miguel revenues down by 13% last year

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CONGLOMERATE San Miguel Corp. (SMC) said its revenues slumped last year, mainly as a result of the drop in crude prices, while the Malampaya gas facilities underwent a scheduled maintenance.

Sales revenues dropped by 13 percent to P674 billion, from last year’s P782.43 billion, mainly as a result of the steep drop in crude-oil prices from $111 per barrel in 2014 to $31 per barrel toward the end of 2015.

Also affecting SMC’s revenues were the scheduled major maintenance shutdown of the Malampaya gas facilities and the downtime resulting from the scheduled major maintenance of the Ilijan and Sual power plants, the company said.

Consolidated net income, before foreign-exchange translation reached P38.2 billion, was up 26 percent from the previous year’s P30.31 billion.

San Miguel Brewery Inc. posted consolidated revenues of P82.4 billion, 4 percent higher than in 2014, as domestic operations registered volume and revenue growth of 3 percent and 9 percent, respectively.

Consolidated operating income amounted to P22.6 billion, up 2.5 percent, while net income reached P13.5 billion.

Liquor firm Ginebra San Miguel Inc. said volumes improved 4 percent to 23 million cases, with volumes for flagship gin brand Ginebra San Miguel up by 5 percent.

Consolidated revenues grew 7 percent to P16.6 billion, while operating income surged 73 percent to P621 million.

Food unit San Miguel Purefoods Co.’s revenues rose 4 percent to P107 billion. Operating income also rose 18 percent to P7.6 billion, on the strong performance of its branded and feeds businesses. With lower interest expenses, net income jumped 24 percent to P4.8 billion.

San Miguel Yamamura Packaging Corp. grew its revenues 3 percent to P25 billion. Consolidated operating income grew 2 percent to P2.3 billion as a result of improved efficiencies and cost management.

Power subsidiary SMC Global Power’s consolidated off-take volume declined 3 percent from the previous year to 16,558 gigawatt-hours as the scheduled major maintenance of the Malampaya gas facility affected the output of the Ilijan facility.

The major maintenance on the Ilijan and Sual power plants also contributed to the decline. Consolidated revenues reached P77.5 billion, while operating income amounted to P23.7 billion.

Petron Corp. posted a net income of P6.3 billion, more than double the previous year’s earnings, mainly driven by the surge in sales volumes, better refining margins and effective risk management. All business segments in Petron’s Philippine and Malaysian operations contributed to volume growth. Revenues, however, declined 25 percent to P360 million due to a drop in oil prices by nearly half.

Despite weak oil prices in 2015, the differential between crude and finished products remained strong and the mix of higher-value products improved. Consequently, operating income grew 138 percent to P18.1 billion.

Infrastructure unit San Miguel Holdings Corp. delivered a 19-percent increase in revenues to P15.2 billion, and a 15-percent rise in operating income to P8.5 billion, on a full-year 2015 results. Following the consolidation of South Luzon Expressway and Skyway 1 and 2 in early 2015, the business contributed P13.3 billion in revenues and P7.3 billion in operating income to the SMC consolidated results.

The company added that the Boracay Airport runway extension is now complete, and a major portion of the Naia Expressway will be completed by the second quarter of this year.