San Miguel Corporation reported a 55 percent drop in net income to P21.9 billion last year from P48.3 billion in 2019 after COVID-19 plunged the economy into recession.

However, SMC said it delivered a solid performance in the second half, posting P25.9 billion in net profit – 7 times better than its first half results and 15 perc ent higher than the same period in 2019.

Even as the recoveries of its major businesses reversed SMC’s P4 billion loss in the first half, full year 2020 profit level still remained lower than 2019, due largely to the economy’s contraction and quarantine restrictions.

Sales and margin improvements in the second half reduced overall decline in consolidated revenues and operating income for the full year, which ended at P725.8 billion and P71.5 billion, 29 percent and 38 percent lower from the previous year, respectively.

“While it has not been a good year for all businesses and our economy overall, we’re encouraged by the sustained recoveries that our businesses showed in the second half,” SMC president and chief operating officer Ramon S. Ang said.

He noted that, “There are still so many challenges ahead–and a lot of uncertainty. But we believe our economic recovery is underway as the vaccine rollout gathers pace.”

Ang added that, “We will continue to stay focused on gaining performance improvements in this new normal while pursuing initiatives that generate jobs and deliver tangible assets to fuel our economy’s growth.”

San Miguel Food and Beverage, Inc. registered consolidated revenues of P279.3 billion for the full year, 10 percent lower than the same period in 2019, but narrowing its 19 percent decline in the 1st half.

SMC Global Power Holdings Corporation posted full-year off-take volumes of 26,116 Gwh, translating to P115.0 billion in consolidated revenues, 15 percent lower than 2019.

This was mainly due to the deferment of the mid-merit power supply agreement with Meralco, the extended contract with Masinloc, and low average realization rate from new power contracts.

Petron Corporation achieved a turnaround in the last two quarters of 2020, with a net profit of P2.8 billion in the second half of 2020, a reversal of its P14 billion net loss in the first half due to stabilizing world crude prices, and subsequent inventory gains realized as prices began to rally towards year-end. 

Total year performance however reflected the impact of multiple challenges Petron encountered in 2020. Consolidated revenues settled at P286.0 billion, 44 percent lower than the previous year.

SMC Infrastructure’s revenues for the year ended at P14.6 billion, down 38 percent from 2019, brought about by the decline in traffic volumes at all operating toll roads due to travel and quarantine restrictions.

Volume improvements continued throughout the second half, with combined average daily vehicle traffic in the fourth quarter reaching 80 percent of 2019 levels, with notable recoveries seen at SLEX and Star Tollway. Operating income amounted to P2.6 billion.

Source: Manila Bulletin (