Reported net income reached ₱94.7 billion, supported by gains from the fair valuation of investments and foreign exchange movements.

Operating income rose 13% to ₱181.6 billion, while EBITDA increased 16% to ₱262.0 billion, reflecting improved operating performance, lower input costs, pricing initiatives, and continued efficiency measures across the group.

Consolidated revenues reached ₱1.5 trillion, with steady contributions from its Food, Spirits, and Infrastructure units helping cushion the impact of softer crude prices and the deconsolidation of the Ilijan and EERI power facilities.

“Our 2025 performance demonstrates the strength of our diversified portfolio and disciplined execution,” said SMC Chairman and CEO Ramon S. Ang. “This allowed us to navigate market shifts, enhance profitability, and remain prudent in our investments. We will continue strengthening our businesses and pursuing opportunities that create long-term value.”

Food and beverage

San Miguel Food and Beverage, Inc. (SMFB) reported a 13% increase in consolidated net income to ₱46.3 billion, supported by record performance from its Food unit, continued growth in Spirits, and higher international beer sales.
Consolidated revenues rose 5% to ₱419.1 billion, while operating income and EBITDA grew 9% and 10% to ₱61.0 billion and ₱80.6 billion, respectively, driven by margin improvements across GSMI and the Food Group.

San Miguel Foods generated ₱196.3 billion in revenues, up 6%, led by improved feeds performance and strong poultry demand. Operating income surged 30% to ₱17.3 billion, while net income climbed 38% to ₱11.6 billion.

San Miguel Brewery Inc. posted ₱155.4 billion in consolidated revenues, reflecting stable performance. International revenues increased 3% to US$285 million on higher volumes, while domestic beer revenues reached ₱139.1 billion despite subdued consumer spending. Operating income remained steady at ₱32.9 billion, with net income at ₱26.5 billion, supported by disciplined cost management and portfolio optimization.

Ginebra San Miguel Inc. sustained its growth momentum, with revenues rising 8% to ₱67.4 billion, driven by effective pricing and stable volumes. Operating income increased 21% to ₱10.4 billion, while net income grew 20% to ₱8.7 billion.

Power

San Miguel Global Power reported revenues of ₱157.2 billion, down 23%, as offtake volumes declined 20% to 29.2 million MWh due mainly to the divestment and deconsolidation of the Ilijan and EERI plants. Excluding this impact, volumes remained stable.

Stronger output from the Masinloc plant, higher generation from San Roque, and full-year contributions from the 600-MW Mariveles power plant and battery energy storage system (BESS) facilities supported overall performance.
Operating income rose 8% to ₱43.8 billion, with margins expanding to 28% from 20%, while EBITDA grew 27% to ₱70.5 billion.

Net income surged 290% to ₱48.3 billion, boosted by a ₱21.9 billion gain from the Chromite transaction. Excluding this one-off gain, net income still improved 113% to ₱26.4 billion.

Fuel and oil

Petron Corporation delivered its strongest financial performance to date, posting record net income of ₱15.6 billion, up 84% year-on-year.

The growth was driven by sustained domestic volume expansion, improved refinery productivity in the Philippines and Malaysia, financial cost savings, and effective working capital management.

Total volumes in both markets reached 113.4 million barrels, up 3%.
While revenues declined 7% to ₱809.8 billion, reflecting a 13% drop in Dubai crude prices to an average of US$69.44 per barrel, operating income surged 28% to ₱37.3 billion. EBITDA rose 22% to ₱52.4 billion, indicating stronger operating leverage.

Infrastructure

SMC Infrastructure sustained growth, with revenues increasing 7% to ₱40.2 billion, driven by higher traffic volumes across toll roads.

Combined average daily traffic reached 1.08 million vehicles, up 5% year-on-year.

Operating income rose 9% to ₱22.1 billion, while EBITDA grew 8% to ₱32.0 billion. Net income increased 5% to ₱14.8 billion, supported by strong revenue performance and effective cost management.

Cement

SMC’s Cement business, including Eagle Cement Corporation, Northern Cement Corporation, and Southern Concrete Industries, Inc., reported ₱33.2 billion in consolidated revenues, down 5% due to softer demand and lower average selling prices amid continued import influx.

Despite lower EBITDA and operating income of ₱9.3 billion and ₱6.3 billion, respectively, margins remained stable through ongoing operational efficiencies and cost management initiatives.

In March 2025, PEMC’s Market Surveillance Committee (MSC), and later its Board in May, concluded that SPPC did not breach the Must Offer Rule of the Wholesale Electricity Spot Market (WESM). Their review found that the plant’s shutdown from June 5 to 25, 2022, was the result of fuel supply constraints that were beyond the company’s control.

Despite this, the ERC on July 24, 2025, issued an order based on an earlier August 11, 2022 MSC resolution, which had been endorsed to the ERC during Dimalanta’s tenure. The order directs SPPC to explain why it should not be penalized for allegedly engaging in anti-competitive behavior when the plant was on “open breaker status” during the June 2022 period, coinciding with higher spot market prices and supply alerts.

SMGP, which fully owned SPPC at that time but now holds a 33% stake after the entry of Meralco PowerGen and Aboitiz Power, said the outage was due to sudden and uncontemplated constraints in its supply of natural gas fuel after the cessation of its gas supply delivered via pipeline, which was the plant’s primary fuel for the past two decades.

It added that the disruption occurred despite diligent efforts exerted by SPPC with the previous operator of the natural gas upstream facility and pertinent agencies to address said constraints.

To avoid similar issues in the future, SMGP thru SPPC has since facilitated the construction of and commissioned an LNG terminal capable of receiving, storing, and processing natural gas for up to 2,500 MW of baseload and cleaner power generation, equivalent to about 15% of Luzon’s net dependable capacity.

SMC President and CEO Ramon S. Ang said that the company’s Group-wide “Water for All” program saved 7.5 billion liters of scarce water in 2023.

This brings SMC’s total water savings throughout the program’s seven-year run to 41.3 billion liters—equivalent to the monthly consumption of 1.3 million households. 

Ang also reported on the progress of another major water initiative: As of March 21, its river rehabilitation project had removed a total of 5.5 million metric tons of silt and solid wastes from 85 kilometers of waterways. These include the Tullahan River, Pasig River, San Juan River, and Bulacan rivers, as well as rivers in Laguna and Navotas. 

“Water issues have long been a major priority for us. Our latest internal Group water savings report, together with our ongoing river cleanup initiatives, are a strong affirmation of San Miguel’s commitment when it comes to the protection, preservation, and enhancement of our water resources,” said Ang.

“Our employees have played a critical role in achieving these results. We are grateful to them for fully adopting and taking to heart our water sustainability advocacies, particularly the reduction of our use of scarce water sources, and parallel to that, the rehabilitation of polluted rivers, to also help flood mitigation,” he added.

According to Ang, the company’s internal water savings come mostly from increased utilization of non-scarce water sources such as seawater, recycled water, and rainwater.

“In the past couple of years, our businesses have really stepped up when it comes to investing in water-saving measures. From fixing leaks, installing new meters, and replacing old pipes; to installing rainwater harvesting facilities, utilizing more efficient water recycling and reuse systems, to investments in advanced technologies such as desalination: Every drop counts, so every little effort of our employees, counts,” Ang added.

SMC fuel and oils subsidiary Petron Corporation continued to account for the bulk of scarce water savings, through its use of a water desalination facility. 

Petron’s total water savings for 2023 reached 3.5 billion liters, bringing its seven-year total to 20.8 billion liters. San Miguel Global Power came in at second, with 1.3 billion liters of scarce water saved for the year, bringing its total to 6.1 billion liters. At third was Spirits unit Ginebra San Miguel Inc., which logged nearly 1.2 billion liters of water saved, for a total of 5.9 billion liters since 2017. 

Other subsidiaries including San Miguel Foods, San Miguel Brewery Inc., San Miguel Yamamura Packaging Corp., SMC Infrastructure, Northern Cement Corp., and San Miguel Properties, in no particular order, also contributed to total water savings. 

Since its launch in 2017, SMC’s Water for All program has expanded to include newer facilities built in recent years. To date, it monitors the water use of 96 SMC facilities, offices, and installations nationwide.

The year “Water for All” was launched, SMC also announced the discontinuation of its plastic bottled water business. 

At the time, Ang noted that while its plastic bottled water business was providing good returns, its discontinuation was part of SMC’s push for greater sustainability, particularly through minimizing plastic wastes that end up on bodies of water. 

Three years later, in 2020, SMC began its massive river cleanup program, which started with its P1-billion initiative to clean up the Tullahan River. The inititive led to the removal of some 1.1 million tons of waste from an 11-kilometer stretch of that river.

SMC then took on the more difficult challenge of cleaning up the Pasig River starting in 2021, for which it spent another P2 billion. 

Last year, the company completed its cleanup of the Pasig River where it removed nearly 1.2 million metric tons of silt and waste. 

The project has since moved to Bulacan province, where many low-lying towns are perennially flooded during the rainy season, due in large part to clogged rivers that prevent the flow of floodwaters out to the Manila Bay. 

SMC’s Bulacan river cleanup efforts have cleared 2.6 million tons of silt and wastes from the Marilao River, Giuguinto River, and Pamarawan River in the province.

This was driven by significant volume growth across its key businesses, including San Miguel Brewery, Inc., Ginebra San Miguel, Inc., Petron, and SMC Infrastructure, together with the integration of Eagle Cement Corporation’s financial results.

SMC’s strategic focus on operational efficiencies and sustainability initiatives contributed to a 24% increase in EBITDA to ₱205.3 billion and a 34% rise in consolidated operating income to ₱144.5 billion.

“We had a strong finish to 2023, which was marked by a healthy operating income and EBITDA, thanks to our continuous efforts to maximize operational efficiencies, aligned with our sustainability agenda. Our robust performance again reflects our resilience and ability to deliver a strong bottom line despite macroeconomic uncertainties, and our commitment to continue investing on nation-building projects,” SMC President and CEO Ramon S. Ang, said.

FOOD AND BEVERAGE

San Miguel Food and Beverage Inc. (SMFB) delivered outstanding financial results for the year. SMFB generated revenues of ₱379.8 billion, a 6% increase from the previous year, with all business units reporting sales growth on account of improved volumes and pricing strategies.

EBITDA went up 7% to ₱66.8 billion, while net income jumped 10% to ₱38.1 billion, the highest achieved by the group since SMFB’s consolidation in 2018. Consolidated operating income was down slightly by 1% at ₱48.4 billion, as the decline in the food business weighed down the otherwise strong performance of the beverage segment.

SMB reported an 8% increase in consolidated sales to ₱147.3 billion, fueled by an 8% and 7% sales growth in the local and international markets, respectively. Domestic sales volumes, however, were still 25% below pre-pandemic levels. Net income stood at ₱25.3 billion, up 16%, resulting from better operating performance and higher interest income.

GSMI’s revenues reached ₱53.6 billion, up 13% from last year as it hit record-high volumes in 2023. This was driven by efforts to enhance brand equity through consistent advertising, consumer promotions, and expanding market reach. Consequently, this translated to a 14% improvement in operating income to ₱6.8 billion. Both EBITDA and net income saw substantial increases of 41% and 55%, amounting to ₱9.4 billion and ₱7.0 billion, respectively.

The Food Group reached revenues of ₱178.8 billion, up 2% from the previous year. This was achieved through strategic pricing across segments, complemented by aggressive marketing to stimulate demand. Strong fourth quarter operating income growth of 89% cushioned a full-year decline at 23%, to end at ₱10.2 billion.

POWER

San Miguel Global Power reported a 23% decline in revenues to ₱169.6 billion, as a result of lower contracted volumes, and prices due to reduced fuel tariffs. Newcastle coal indices averaged US$172.79/MT in 2023, compared to US$360.19/MT in 2022.

Notably, the fourth quarter saw a 32% increase in volumes from the year-earlier period—a turnaround from the declines in the first three quarters of the year, partly due to higher sales volume from the San Roque hydropower plant, and increased contributions from its Battery Energy Storage System (BESS) network.

Operating income was up 13% to ₱32.5 billion due to lower cost to supply, and exposure to better spot prices during the period resulting from the suspension of the 670MW PSA of SPPC.

Better operating margins were also accompanied by forex gains for the year versus forex losses in 2022. As a result, net income tripled to ₱9.9 billion from 2022’s ₱3.1 billion.  EBITDA grew to ₱22.3 billion, up 34% from the previous year.

FUEL AND OIL

Petron’s continuing efforts to sustain demand recovery, optimize assets and resources, and respond to market volatility, resulted in a 60% improvement in operating income, which reached ₱30.7 billion coming from ₱19.2 billion in 2022. Net income amounted to ₱10.1 billion, 51% higher than the ₱6.7 billion reported in the previous year.

The company delivered combined 2023 sales volumes of 126.9 million barrels, 13% higher than the 112.8 million barrels sold in 2022, fueled by its wide presence and effective volume-generation strategies both in the Philippines and Malaysia. Strong volume performance was driven by significant growth in its Jet Fuel and LPG sales, backed by higher production at its Bataan and Port Dickson refineries.

Despite higher sales volume, Petron’s revenues settled at ₱801.0 billion, slipping 7% from the previous year’s ₱857.6 billion, as prices continued to correct from record-high levels in 2022. The full year average price of benchmark Dubai crude stood at $82 per barrel in 2023, down 15% from $96 in 2022.

INFRASTRUCTURE

SMC Infrastructure registered consolidated revenues of ₱34.0 billion, 17% higher than the previous year. This was mainly brought about by sustained growth across all operating toll roads. Combined average daily traffic volume reached 1.0 million vehicles, an 8% increase from 2022 level, buoyed by continued increase in travel activities.

Driven by robust volume growth, operating income surged 25% to ₱17.7 billion, coupled by continued cost management initiatives. Net income increased 33% increase over last year to ₱11.4 billion. Consolidated EBITBA margin of 81% remains robust.

CEMENT

The Cement Business, comprised of Eagle Cement Corporation, Northern Cement Corporation, and Southern Concrete Industries, Inc., registered a four-fold growth in consolidated revenues to ₱37.2 billion in 2023, mainly due to the full-year consolidation of Eagle in 2023, and the start of commercial operations of our new facility in Davao del Sur.

EBITDA grew substantially to ₱9.5 billion from ₱532.3 million in the previous year. Meanwhile, the group swung to an operating income of nearly ₱6.0 billion from a loss last year. Despite prevailing challenges in the market, cost containment initiatives and significant improvement in the cost of major inputs, helped the business deliver a strong performance.

Outlook

SMC remains confident in its ability to efficiently manage its business and continue to deliver sustainable value, amid continuing market uncertainties. The Company is optimistic that the country’s robust macroeconomic fundamentals and its strategy, anchored on our sustainability agenda, will sustain growth momentum throughout 2024.

SMC’s Food and Beverage business is seen to continue its growth trajectory, aided by

a positive consumer demand backdrop, favorable inflationary environment, and strong brand following.

The Infrastructure business, on the other hand, is seen to sustain its growth trajectory with continued traffic growth across its network, along with increased travel throughout the country.

Meanwhile, with its increased capacity, the Cement business is expected to benefit from both private and public sectors’ push for economic and infrastructure development.

Consolidated operating income was up 5% at ₱69.9 billion, tempered by rising raw materials costs which continued to affect its other businesses.

Meanwhile, consolidated revenues were down 4% to ₱685.2 billion as fuel subsidiary Petron Corporation continued to be affected by declining crude oil prices and San Miguel Global Power contended with lower volumes. Consolidated EBITDA was up 10% to ₱100.1 billion.

“We’re greatly encouraged by the sustained growth we are seeing across most of our businesses. While there are challenges, we’re confident in the programs we have put in place to address them. We are also keeping our focus on executing on our projects, implementing our growth strategies, and providing our customers the high-quality service they expect from San Miguel,” SMC president and CEO Ramon S. Ang.

FOOD AND BEVERAGE

San Miguel Food and Beverage, Inc. ‘s (SMFB) consolidated revenues for the first six months reached ₱184.6 billion, 7% higher than the same period last year, driven by better selling prices across its Beer, Spirits, and Food divisions.

Consolidated operating income, however, ended lower by 13% at ₱23.0 billion, as the Food division continued to face rising raw material costs. With SMB and GSMI’s sustained performance, net income ended at par from last year at ₱18.8 billion.

San Miguel Brewery Inc. (SMB) reported 14% growth in consolidated revenues in the first semester, registering ₱74.1 billion in sales compared to P65 billion posted in the same period last year. This is attributable to volume growth from both domestic and international operations at 9% and 16%, respectively, combined with a more favorable business environment.  SMB posted consolidated operating income of ₱16.4 billion, up 12%, while consolidated net income ended at ₱13.5 billion, 26% higher than the previous year’s levels.

Ginebra San Miguel Inc. (GSMI) also reported a strong first semester performance with sales revenues rising 10% to ₱25.4 billion, while income from operations went up 3% to ₱3.4 billion. Net income reached ₱4.1 billion, 64% higher than the same period last year, due to the recognition of the transfer of its product rights on the Don Papa brand.

San Miguel Foods (SMF) recorded consolidated revenues of ₱85.1 billion, slightly ahead of last year on higher selling prices implemented since the 2nd half of last year. This helped mitigate lower volumes resulting from high inflation, the resurgence of the African Swine Flu disease, and poultry capacity supply constraints. Correspondingly, consolidated operating income and consolidated net Income ended at ₱3.2 billion and ₱1.7 billion, respectively.

POWER

San Miguel Global Power Holdings Corp.’s (SMCGP) off-take volumes for the 1st semester ended
at 10,685 Gwh, 25% lower than last year following the termination of its 670-MW power supply agreement with Meralco.

Consolidated operating income rose 8% from last year to ₱14.8 billion, on the back of better margins on its available net capacity. Consolidated net income meanwhile jumped to ₱5.9 billion, more than 4x higher than last year due partly to the appreciation of the peso this year.

FUEL AND OIL

Petron Corporation sustained its growth momentum in the first half of the year, recording a 12% increase in its consolidated sales volume at 57.61 million barrels, brought about by strong demand recovery.  The Philippine operations posted sales volume growth of 16% while Malaysia by 7%.

Despite the softening of refinery margins, Petron sustained its consolidated operating income at ₱16 billion, at par versus last year, while net income settled at ₱6.14 billion, down 20% from last year’s ₱7.7 billion.

INFRASTRUCTURE

SMC Infrastructure continued to deliver robust results as combined average daily traffic volumes across all its operating tollroads improved 13% to over 998,000 vehicles. As a result, consolidated revenues rose 23% to ₱16.6 billion and operating income reached P9.0 billion, up 50% from the same period last year.

CEMENT

San Miguel’s Cement business, composed of Eagle Cement Corporation, Northern Cement Corporation, and Southern Concrete Industries, Inc., registered consolidated revenues of ₱20.2 billion, tripling from last year’s ₱6.9 billion. Operating Income amounted to ₱3.0 billion, coming from ₱398 million the previous year.

We always believed that such framework is key to fostering growth, innovation and sustainability in the country’s power industry.  

It is regrettable that the ERC’s unfair decision early on to reject our joint petition with Meralco for a temporary rate hike — despite proving to be the least cost option at that time for power consumers — resulted in consumers shouldering the burden of much higher electricity rates.  

However, we assure the public that we will continue to find ways to help ease the impact of the current power crisis we are facing along with other nations globally, while ensuring we sustain operations and meet our country’s evolving power needs. 

We look to forge even stronger partnerships with government, consumers, and other key stakeholders to help shape a more resilient and sustainable energy landscape for all. 

The decision of the Court of Appeals (CA) upholds the constitutional mandate of due process that guarantees the right to be treated fairly and effectively by quasi-judicial bodies like the Energy Regulatory Commission (ERC), and in the process, assure a fair and balanced regulatory environment that equally protects the rights and interests of all stakeholders involved.   

We always believed that such framework is key to fostering growth, innovation and sustainability in the country’s power industry.  

It is regrettable that the ERC’s unfair decision early on to reject our joint petition with Meralco for a temporary rate hike — despite proving to be the least cost option at that time for power consumers — resulted in consumers shouldering the burden of much higher electricity rates.  

However, we assure the public that we will continue to find ways to help ease the impact of the current power crisis we are facing along with other nations globally, while ensuring we sustain operations and meet our country’s evolving power needs. 

We look to forge even stronger partnerships with government, consumers, and other key stakeholders to help shape a more resilient and sustainable energy landscape for all. 

San Miguel Global Power (SMGP) statement:  

The decision of the Court of Appeals (CA) upholds the constitutional mandate of due process that guarantees the right to be treated fairly and effectively by quasi-judicial bodies like the Energy Regulatory Commission (ERC), and in the process, assures a fair and balanced regulatory environment that equally protects the rights and interests of all stakeholders involved.   

We always believed that such framework is key to fostering growth, innovation and sustainability in the country’s power industry.  

It is regrettable that the ERC’s unfair decision early on to reject our joint petition with Meralco for a temporary rate hike — despite proving to be the least cost option at that time for power consumers — resulted in consumers shouldering the burden of much higher electricity rates.  

However, we assure the public that we will continue to find ways to help ease the impact of the current power crisis we are facing along with other nations globally, while ensuring we sustain operations and meet our country’s evolving power needs. 

We look to forge even stronger partnerships with government, consumers, and other key stakeholders to help shape a more resilient and sustainable energy landscape for all. 

While the Consortium sought to communicate, among other things, that there is no “live contract” for Malampaya gas between SPPC and the Consortium, the facts of the issue stand:

SPPC bought the Malampaya banked gas owned by the government through PNOC for US$1.2 billion

⁃     SPPC signed a Gas Supply and Purchase Agreement (GSPA) worth P1.2 billion with PNOC for such banked gas last June 23, 2022, under the direct supervision of the Department of Energy (DoE), the PNOC Board, and the Office of the Government Corporate Counsel (OGCC). Government, through PNOC, owns and exercises rights over 70.26PJ banked gas.

⁃     While SPPC does not have a direct agreement with the Consortium, it is PNOC on behalf of government that has an existing contract with SPPC. In fact, in our discussions for the sale of the banked gas, PNOC disclosed to SPPC that the government has fully paid the Consortium for the gas, which means that 100% of the gas should be deliverable to SPPC.

The SPPC-PNOC agreement is more advantageous to government

⁃     With gas volumes from Malampaya on the decline, the prioritization of the SPPC and PNOC contract over the banked gas is widely considered to be more advantageous to government, as it was bought by SPPC at a significantly higher contract price compared to those of existing gas supply agreements from Malampaya with another power company.

Delivering the purchased gas supply to Ilijan will benefit consumers and reintegrate 1200 MW of baseload capacity to the grid

⁃     Reintegrating Ilijan into the Grid using Malampaya gas supply will immediately add 1,200 MW of baseload capacity, helping stabilize power supply and prices. Historically, Ilijan contributes up to 10% of the net reliable capacity in Luzon. However, since Ilijan was cut off from Malampaya supply last June 2022, the system demand and supply situation has been very fragile with elevated and volatile electricity spot prices. From June to November 2022, electricity spot market prices averaged P8.67/kwh compared to only P4.31/kwh for the same period over the past three years. Compounding the problem is the exponential growth of demand over the past two years, which is seen to create a massive supply deficit by summer 2023. With no new major baseload capacities expected in the coming months, it is crucial for government to reintegrate Ilijan’s 1,200 MW capacity into the Grid in the interest of energy security.

Adding Ilijan’s 1,200 MW to the Grid will stabilize overall prices

⁃     With Ilijan operating at full load, the addition of 1,200 MW of baseload capacity to the grid will reduce the overall power supply costs of industrial customers and distribution utilities including MERALCO, that source a large portion of their supply from the electricity spot market (or WESM). Stabilizing WESM prices will also mean that there will no longer be a pressing need to operate aging diesel plants that act as power reserves, but run at generation costs more than double the cost of coal power, yet deliver poor power quality.

⁃     Should the Malampaya supply be delivered to Ilijan, other affected power facilities can alternatively use condensate fuel, as allowed under their PSAs with Meralco. This will avoid disruptions to the energy trading market. Any increase in power supply costs will only affect the pertinent contract capacities using condensate fuel.

The SPPC- PNOC contract is the true win-win solution for all stakeholders

The SPPC and PNOC contract is the true win-win solution, not just for players in the Malampaya business supply chain, but all stakeholders–especially consumers. Also, PNOC owns 70.26 PJ of banked gas, which it sold to SPPC for $1.2B or $18/MMbtu compared to competing gas supply contracts that are believed to be priced significantly lower from the government’s perspective. By preventing or limiting the utilization of the banked gas, PNOC will not be able to fully monetize, if at all, this government asset valued at $1.2B before the end of the concession in 2024 as the gas volumes extracted from Malampaya continue to rapidly decline.

SMC president Ramon S. Ang said that the offer, covering the full 1,200 megawatts capacity of the plant that historically accounted for 10-12% of Luzon’s net dependable capacity, will only cost Meralco a minimal P1.00/kwh in capital recovery fee, or half of its capital cost on the facility.  

Essentially, this will mean that the incremental power supply costs from such capacity for households may be cut down significantly compared to prevailing costs from coal power generation.  

Ang said that SMGP, through subsidiary South Premiere Power Corp. (SPPC), has already had initial discussions with Meralco, as both firms are committed to help consumers weather rising commodity prices, including that of power. 

“As we have said in the past, we will continue to look for ways to help make sure consumers will still have some protection from the effects of skyrocketing global fuel prices. This is one of the best and most direct ways we can show solidarity with our people in this time of crisis,” said Ang. 

“Because of unforeseen global events such as the Russia-Ukraine war, fuel prices are at unprecedented highs, and supply is tight. We are in a crisis and this is a shared burden by all Filipinos—power consumers, the power sector, government. By immediately foregoing returns, we continue to carry our share of the burden, while getting just enough to make sure plant operations continue and remain sustainable,” Ang added.  

Currently, the Ilijan facility is on extended outage following the refusal of Shell Philippines Exploration BV (SPEX) to supply the 70 petajoules (PJ) in banked gas from Malampaya, that SPPC acquired from PNOC in June 2022. In the meantime, it is conducting repair works on the power plant to improve its fuel efficiency and generation ramp rate.  

The original gas supply agreement of the Ilijan Plant with Malampaya also expired last June 2022.  

Ang said that in order to help address fuel constraints, it is also offering to help source the fuel for the Ilijan facility —whether from its own allocation of Malampaya gas or liquid fuel — which Meralco will pay for.  

Ang said that SMC Global is also willing to work with Meralco in using its 70 PJ banked gas acquired from PNOC at a cost much lower than the prevailing cost of coal power generation. 

This, he said, would give Meralco the flexibility to manage its overall power generation costs, and ensure adequate power supply. 

Earlier, the Department of Energy said it expects a massive power supply deficit in Luzon, unless the Ilijan power plant is reactivated as part of the energy mix.  

Ang said the company also expects the completion of an LNG terminal facility it has tolled by March 2023, according to most recent construction updates. 

The company contracted the facility to receive, store, and re-gassify commercial LNG, but pandemic restrictions and the Russia-Ukraine war delayed the project.  

The Philippine is currently making a push for more gas power generation capacity, as it is considered a “bridge fuel” to wider adoption of renewable power. 

It has a significantly lower carbon footprint than coal power generation. 

By Victoria “NIKE” De Dios

In its desire to embark a sustainable development in many of its new projects, San Miguel Corporation (SMC) is gearing up to build a 200-MW solar farm on its 2,500-ha property in Bulacan to help power its P740-billion New Manila International Airport project, as it expands efforts to sustainably transition to cleaner energy sources.

SMC’s international gateway project in Bulacan is seen to not only solve the worsening airport and traffic congestion in Metro Manila and give the Philippine economy a major boost. It is projected to generate trillions of dollars in economic activity and job opportunities, potentially contributing about 9% to GDP by 2025. The Estimated annual impact on the economy would amount to nearly P900 billion.

More than that, the airport project is also betting on a green economy to have a dominant role in building a sustainable economy past the pandemic.

SMC president and COO Ramon S. Ang said the facility will be one of the largest in the country, representing one of the many projects the conglomerate – through its energy arm San Miguel Global Power is developing to integrate renewables to its diversified power portfolio.

Ang said the company’s solar farm in Bulacan will come with a battery energy storage facility that can store power when generation is high but power consumption is low and can be released when the demand is high.

“This battery storage will be a viable solution to balancing electricity loads and storing unstable energy supply coming from the sun and other renewable sources of energy which we are looking to utilize for the airport,” Ang said.

He added: “Our approach has always been to use cutting-edge technology to shift sustainably to better fuels while balancing the needs of our country, economy, and people for affordable, reliable traditional fuel-based power.  We continue to invest in technologies so that our power facilities would have as little impact as possible on the environment,” Ang said.

The circulating fluidized bed technology that SMC uses in its modern, state-of-the-art clean coal power plants ensures that emissions are way below both Philippine and international emission standards as it transitions to cleaner energy sources.

SMC also maintains a mix of renewable and non-renewable facilities, with hydropower and natural gas facilities in its portfolio. Its brand new LNG plants are a first in the country and a viable alternative to fossil-based power generation.

Ang added that SMC has also invested significantly in battery storage technology in various parts of the country to help stabilize power grids, minimize power wastage and provide reliable and affordable electricity coming from a mix of renewable and traditional sources.

The technology is seen to significantly encourage the use of more renewable energy in the long term, as storing power can address one of the main hindrances to wider adoption of renewable power, apart from high cost—that is, limited power sources, such as sunlight or wind.