Conglomerate San Miguel Corp. said its power units maintain their financial viability and have diligently met their fiscal obligations.
SMC’s disclosure was in response to a report by the Institute of Energy Economics and Financial Analysis concerning the debts of San Miguel Global Power Holdings Corp.
“SMGP remained profitable in 2022, as it has been since it started operations in 2011, inspite of the rise of coal and other fuel prices to unprecedented levels,” the parent firm said.
In 2022, SMGP registered P221.4 billion in consolidated revenues and EBITDA of P42.32 billion. These results were achieved through a combination of efficient power plant operating cost optimization strategies and sound commercial agreements with its established bilateral customers.
As of June 30, SMGP had a combined installed capacity of approximately 19% of the National Grid, 25% of the Luzon Grid, and 7% of the Mindanao Grid.
Furthermore, it holds current and valid power supply agreements with distributors and other end-users.
“SMGP continues to have access to its funding requirements with financial institutions,” SMC said.
Certain loan maturities for the current year have been successfully refinanced, and SMGP is actively finalizing a project financing arrangement for its battery energy storage systems (BESS).
“When completed, SMGP expects the BESS business to contribute meaningfully to its revenues. SMGP remains confident of its ability to tap the local market as proven by its successful issuance of the P40 billion peso retail bonds,” SMC said.