SMC survives tough first semester; books P19.8B net income

Cost spikes, inflation and supply bottlenecks gnawed on San Miguel Corp.’s net earnings from January to June.

SMC, a diversified conglomerate led by ultra bilyonaryo Ramon S. Ang, reported a consolidated net income of P19.8 billion, 33 percent lower than the previous year due to foreign exchange movements and the impact of the

CREATE Law.

Recurring consolidated net income grew 24 percent to P32.5 billion on robust growth across all SMC’s businesses amid better selling prices.

Operating income jumped 41 percent to P85.9 billion mainly due to the improved performance of its fuel and oil subsidiary Petron and sustained recoveries of its food, beverage, packaging, and infrastructure units.

“Overall, it’s been a very challenging period, with geopolitical conflict resulting in uncertainties and serious supply and costs issues that are affecting industries all over the world.

Despite this, and even with the lingering effects of the pandemic, we’re encouraged by the strong and increasing demand for our products and services, as evidenced by our higher volumes and revenues in the first half.

This shows that our country’s economic recovery and growth are gaining pace. We will maximize every opportunity to further strengthen our performance in the second half,” said SMC president and CEO Ramon S. Ang.

Petron Corp. had a major bounceback, with its net income doubling to P7.7 billion.

Consolidated revenues grew more than two-fold to P398.5 billion on the back of demand recovery due to sustained easing of travel restrictions and the improved pandemic situation.

SMC’s infrastructure arm grew revenues by 58 percent to P13.4 billion on the back of higher traffic volume.

Power unit SMC Global Power Holdings Corp. saw operating income drop by 26 percent to P12.8 billion due to
unprecedented increase in fuel input costs and the deration of the Ilijan gas plant due to Malampaya gas field supply issues.

— Jake Lucky (@JakeSucky) August 2, 2022

Fraud alert: Beware of advance fee scams

The Securities and Exchange Commission (SEC) has warned the public against a new scam wherein victims are asked to pay a certain amount in exchange for the release of the loan.

Shanghai axes some Covid testing requirements

Authorities in China’s financial hub of Shanghai will from Monday scrap some testing requirements in the country’s latest relaxing of its strict zero-Covid policy following nationwide protests unseen in decades.