Sy-led conglomerate SM Investments Corp., or SMIC, projects higher contributions from its logistics and geothermal ventures to its overall earnings in the medium term.
SM Investments Consultant for Investor Relations and Sustainability Timothy Daniels said the Group's portfolio business posted double-digit contributions collectively and the company aims to sustain the growth momentum.
Notably, its investments in the Philippine Geothermal Production Company or PGPC as well as in 2GO Group and Airspeed are delivering significant boost to the company's overall performance.
"We think we can get this to the mid-teens in percentage contribution over the medium term. Particularly, our optimism lies in the potential contributions of logistics and geothermal ventures to drive faster growth," Daniels said at the recently held Philippine Stock Exchange Investor Day.
SM completed its acquisition of 2Go Group from Chelsea Logistics and Infrastructure Holdings Corp. in 2021.
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Turnaround for 2022
Last year, 2GO managed to reverse its profits of P312 million on the back of P19.3 billion in revenues.
2GO's revenues grew 25 percent as the company benefited from the country's economic reopening and complete lifting of movement restrictions.
SM Investments likewise highlighted that expanding geothermal energy production via PGPC would not only increase revenue but also align with their sustainability goals.
PGPC is currently looking to progress its other geothermal concessions and increase its renewable energy output to about 600 megawatts to pursue green and sustainable energy development.
The company previously disclosed that it identified new projects in Northern Luzon: Kalinga, Daklan, and Cagayan; and Southern Luzon: Mount Labo and Malinao, which will form part of the company's investment of approximately P3 billion annually.
"We are picking the businesses that add to the ecosystem of SM Investments. It is about creating value and growth," Daniels said.
SM Investments has investments in market-leading businesses in retail, banking and property. It also has ventures that capture high growth opportunities in the emerging local economy.
