SMGP sees double-digit revenue growth this year

Revenues of San Miguel Global Power (SMGP) are expected to expand by double digits this year and next year on the back of added capacity from its Mariveles 600-megawatt (MW) coal plant and 300-megawatt-hour Masinloc battery energy storage system, according to Fitch Group unit CreditSights.

-  RICHMOND MERCURIO

In a report, CreditSights said it expects SMGP's revenues to grow by about 14 percent this year and 27 percent in 2025.

SMGP's EBITDA, on the other hand, is seen growing by 35 percent and 21 percent in 2024 and 2025, respectively.

CreditSights said SMGP's Batangas combined cycle plant is likely to be commissioned in early 2025 and provide 1.2 gigawatts (GW) of power under a contract with Meralco.

"We assumed SMGP is successful in the extension of the current emergency power supply agreements (EPSAs) with Meralco beyond May 2024, with full cost passthrough mechanism and in the successful re-contracting of the residual 190-MW of uncontracted power supply also with full cost passthrough mechanism," CreditSights said.