SM’s geothermal firm plans P3-billion annual spend to double steam generation capacity

The Philippine Geothermal Production Company (PGPC) on Wednesday said it is looking to spend some P3 billion annually to double its steam generation capacity in the next five years.

According to PGPC chief finance officer Jason Aguirre, the firm is looking to double its steam capacity to 600 megawatts (MW) from the current 300MW.

“We don’t have specific targets this year yet, but the long-term plan is for us to double our existing capacity… in the coming years but again, not on the short term but more on the medium to long term,” he told reporters in Pasay City.

Sy-led SM Investments Corporation (SMIC) last year took full ownership of PGPC through an 81% stake in its holding firm Allfirst Equity Holdings Inc.

PGCP currently operates the Tiwi steam field—the first geothermal steam field development in Southeast Asia—and the Mak-Ban steam field. Both produce approximately 300 megawatts of electricity.

Aguirre said the firm is now in the process of exploring five new areas, but these are in the “very early” stages. It expects to drill a couple of these within the year.

Aguirre’s remarks were made in a briefing on the sidelines of the annual stockholders’ meeting of SMIC, which plans to put up around 350 retail stores across the country this year.

It plans to spend P90 billion this year, of which P80 billion will be allocated to its property subsidiary SM Prime Holdings Inc. (SMPH).

SMIC’s gaming affiliate Premium Leisure Corporation is also looking to expand its presence across the country, following the easing of restrictions brought about by the COVID-19 pandemic.

“At the moment, we are looking at various investment opportunities in the gaming space. As you very well know, we just started recovering from the pandemic. The foreign visitors are slowly [coming] into our casinos,” its chief executive officer Armin Raquel Santos said in the same briefing.

“If there are possible investments, why not? We’re also looking outside of Metro Manila. As you can see, there’s a wide range of assets that are being offered,” he added.

Just last month Philippine Amusement and Gaming Corp. (PAGCOR) chief executive officer Alejandro Tengco unveiled plans to privatize the agency’s self-operated casinos, and instead focus on a purely regulatory role.

Under its mandate, PAGCOR is required to regulate the gaming industry, generate revenues for the Philippine government's socio-civic and national development programs, and help promote the tourism industry.

PAGCOR also operates casinos across the country, collectively called Casino Filipino. It has three in Metro Manila, three in the rest of Luzon, and four in the Visayas and Mindanao regions based on its official website.

“If and when PAGCOR decides to privatize as mentioned by chairman Al Tengco, we will look into the terms and provisions that we can participate,” Santos said.

Shares in SMIC closed Wednesday down by P2.00 or 0.22% at P898.00 apiece. — BM, GMA Integrated News