Diversified conglomerate San Miguel Corp. said Thursday it plans to raise up to P50 billion from the issuance of fixed-rate bonds.
San Miguel said its board of directors approved the filing of up to P50 billion in bond-shelf registration, with an initial issuance of P20 billion and an oversubscription option for another P10 billion.
The conglomerate said it posted a net income of P21.87 billion in 2020, down 55 percent from P48.57 billion in 2019 as the economy plunged into recession amid the pandemic.
Net sales fell 29 percent in 2020 to P725.8 billion from P1 trillion in 2019.
The company said it managed to reverse its P4-billion net loss in the first half of 2020 as it posted a robust P25.8-billion net income in the second half.
Sales in the second half also improved by 6 percent to P373 billion from P352.8 billion in the first semester.
“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. 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,” San Miguel president and chief operating officer Ramon Ang said.
“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,” he said.
The conglomerate’s food and beer subsidiary posted a 31-percent decline in net income in 2020 to P22.4 billion, as net sales dropped 10 percent to P297.3 billion.
The beer business booked a net income of P17.45 billion, down by 36 percent from 2019. Net sales also dipped 24 percent to P107.9 billion.
Food business registered a 17-percent drop in net income to P2.8 billion as net sales slipped by 3 percent to P135 billion.
The group’s packaging business booked a 73-percent slide in income from operations to P961 million from P3.6 billion in 2019.
Petron Corp. ended in the red with a net loss of P11.4 billion in 2020, a turnaround from the P2.3-billion net income in 2019 as net sales shrank by 44 percent to P286 billion.
SMC Infrastructure posted a 78-percent decline in income from operations to P2.57 billion. SMC Infrastructure opened Skyway Stage 3 to the public in January, cutting travel time from the South Luzon Expressway in Alabang to North Luzon Expressway in Balintawak to 30 minutes.
SMC Global Power Holdings Corp. declared a 31-percent increase in net income in 2020 to P18.87 billion from P14.36 billion in 2019. Net sales, however, declined by 15 percent to P115 billion from P136 billion in 2019.
Lower fuel costs and spot purchases, together with effective power dispatch strategies, improved Global Power’s performance in the second half. Operating income grew 3 percent to P36.9 billion.
SMC Global Power completed Masinloc Unit 3 with a capacity of 335 megawatts in September 2020, while the construction of the 1000-MW BESS project was in full swing.
