San Miguel Corp plans to invest US$34 billion in an oil refinery, an integrated steel complex and an ocean-tide power plant as the Philippines’ largest company by sales expands amid forecasts for robust economic growth in the country, according to its president.
The company, which sells nine of every 10 beers in the Philippines, is also “evaluating and may bid” for Saigon Beer Alcohol Beverage Corp, San Miguel president Ramon Ang (蔡啟文) told reporters on Friday.
Vietnam might provide an anchor to increase its brewery business, as consumption in the country is growing at an annual rate of at least 10 percent, five times that in the Philippines, he said.
“The businesses we ventured into have matured, such that the company is in a very stable position,” Ang said, citing compounded annual 20 percent growth in recurring profit and a near four-fold increase in assets since 2008 following the firm’s diversification from food and drinks into non-allied industries, such as toll roads and resources.
Excluding one-off items, profit is to rise at least 20 percent to about 60 billion pesos (US$1.2 billion) this year, he said.
Profit at the company rose 80 percent to 52.2 billion pesos, boosted by higher sales at its oil, beer and food units.
An 11.8 billion peso one-time gain from the sale of its telecommunication assets helped offset a 9 billion peso foreign-exchange loss.
The firm plans to build an oil refinery with a capacity of 250,000 barrels per day and an integrated steel plant, which would entail investments of US$15 billion each.
An ocean-tide energy project with initial capacity of 1,200MW and costing US$3.6 billion is also in the pipeline.
The oil refinery — which would also produce aromatics and petrochemicals — and the steel plant are under study, and construction could take three-and-a-half years, while the power project might be completed in five, Ang said.
San Miguel-owned Petron Corp, the Philippines’ largest oil refiner and retailer, in January said it is seeking partners for a refinery it will build in southern Philippines.
Saigon Beer, Vietnam’s largest brewer with a 40 percent market share, has received government approval to hire consultants to advise the state-owned company’s planned stake sale this year.
Heineken NV, Anheuser-Busch InBev NV and Asahi Group Holdings Ltd are among seven foreign companies that previously registered to bid for stakes.
An initial public offering of its unit SMC Global Power Holdings Corp might push through in the third quarter, Ang said, declining further details.
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