SMIC stays on trajectory
Increasing geothermal energy production through PGPC fits with SM’s objectives when it comes to its sustainability agenda.
Text size
Share
Daily TribuneIncreasing geothermal energy production through PGPC fits with SM’s objectives when it comes to its sustainability agenda.
Share
Image from www.bworldonline.com
SM Investments is optimistic its portfolio investments will contribute more than 10 percent to overall earnings in the medium term.
To add incremental growth to the SM parent company above the already aggressive performance of the core businesses, SM Investments built its portfolio investments before the pandemic which currently contribute 10 percent to total net earnings as of the first half.
In a recent forum, SM Investments consultant for investor relations and sustainability Timothy Daniels noted how the group's portfolio business is now delivering double-digit contribution collectively and the goal is to continue building on its growth momentum.
"We think we can get this to the mid-teens in percentage contribution over the medium term," he said in his talk at the recently concluded Philippine Stock Exchange Investor Day. Particularly, our optimism lies in the potential contributions of logistics and geothermal ventures to drive faster growth," Daniels said.
"The investments we made in Philippine Geothermal Production Company and in logistics with 2GO and Airspeed, have performed well," Daniels said.
In 2022, 2GO delivered a milestone turnaround in 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.
Increasing geothermal energy production through PGPC fits with SM's objectives when it comes to its sustainability agenda.
With PGPC, the SM Group will be able to provide steam to power plants that will, in turn, go to the communities that need them.
"We are picking the businesses that add to the ecosystem of SM Investments. It's about creating value and growth," Daniels said.
