SM Investments bullish on RE growth prospects

Sy family’s conglomerate SM Investments Corporation (SMIC) is bullish on the growth prospects in the renewable energy sector.

In a news release on Friday, SMIC said renewable energy would be the next phase of the conglomerate’s diversification strategy.

This was what SMIC vice chairperson Teresita Sy-Coson disclosed in an interview with Bloomberg, according to SMIC.

“(The growth) will be more in renewable because we have to source from renewables. We get 50% of our energy from renewables,” said Sy-Coson.

SMIC said its property unit SM Prime Holdings had sourced 50% of its energy requirement from renewables in 2022.

It said SM Prime aims to reach net zero greenhouse gas (GHG) emissions by 2040.

SMIC added that it is also ramping up clean energy supply in support of the country’s growing advocacy for green energy through its wholly owned Philippine Geothermal Production Company (PGPC).

The conglomerate said PGPC targets increasing its steam production by approximately another 300 megawatts (MW) of baseload renewable energy through new exploration projects, which will hike its geothermal capacity to an estimated total of 600 MW.

SM Investments has reported a consolidated net income of P55.9 billion in the January–September period, up 30% from P42.9 billion year-on-year.

Consolidated revenues rose 15% to P440.4 billion from P382.0 billion in the same period last year.

Of total net earnings, retail accounted for 18%. Banking accounted for the largest share at 47%, while property contributed 26% and portfolio investments pitched in at 9%.

Its portfolio investments continued to sustain growth, with PGPC and office developer NEO contributing significantly to portfolio net income. —VBL, GMA Integrated News