LISTED CONGLOMERATE San Miguel Corp. (SMC) said that the businesses of its power unit, San Miguel Global Power Holdings Corp. (SMGP), and its subsidiaries are still “viable” and are able to meet financial obligations.

“SMGP remained profitable in 2022, as it has been since it started operations in 2011, in spite of the rise of coal and other fuel prices to unprecedented levels,” SMC told the local bourse on Monday.

The company said the unit’s consolidated revenues of P221.4 billion and earnings before interests, taxes, depreciation, and amortization (EBITDA) of P42.32 billion are “both at par with results in prior years.”

It said that this is due to the implementation of “various power plant operating cost optimization strategies combined with viable commercial arrangements with its existing bilateral customers.”

SMC said that certain loan maturities this year have been refinanced and SMGP is currently closing a project financing arrangement for its battery energy storage systems, which is expected to contribute 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,” the company said.

Meanwhile, SMC said the unit is still on track with the development of solar-based power generation projects while remaining “fully compliant” with existing local and international requirements, laws, and regulations.

“To date, the Company and its subsidiaries, including SMGP, are fully compliant with and continue to comply with their financial obligations,” it said.

As of June, it said SMGP had a combined installed capacity of about 19% of the national grid, 25% of the Luzon grid, and 7% of the Mindanao grid, with power supply agreements with distributors and other end users.

On Monday, SMC shares rose by 30 centavos or 0.29% to close at P104.80 apiece. — Sheldeen Joy Talavera