San Miguel Global Power Holdings Corp. on Thursday said it executed a subscription agreement with investment fund Azure Venture Investments Limited for the subscription of redeemable perpetual securities amounting to P800 million.
San Miguel Global, the power arm of conglomerate San Miguel Corp. disclosed the transaction to the Philippine Dealing & Exchange Corp. (PDEx), but did not give additional details. It said the agreement is subject to certain closing requirements.
Executives of the country’s second largest power generating company did not respond to queries as of press time although the development of San Miguel Global’s 1,200-megawatt liquefied natural gas plant and Mariveles, Bataan coal plants is ongoing.
San Miguel Global has a nationwide market share of 19.78 percent and installed capacity of 5,057 MW based on latest figures from the Energy Regulatory Commission.
Meanwhile, the company’s net income tripled to P9.9 billion in 2023 from 2022’s P3.1 billion despite a 23-percent decline in revenues to P169.6 billion, because of lower contracted volumes and prices due to reduced fuel tariffs.
Newcastle coal indices averaged $172.79 per metric ton in 2023, compared to $360.19/MT in 2022.
San Miguel Global said the fourth quarter saw a 32-percent increase in volumes from the year-earlier period, representing 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 percent to P32.5 billion on lower cost to supply and exposure to better spot prices during the period resulting from the suspension of the 670 MW power supply agreement of South Premiere Power Corp.
It said better operating margins were accompanied by forex gains for the year versus forex losses in 2022, while earnings before interest, taxes and amortization grew 34 percent to P22.3 billion from the previous year.
