Metro Manila (CNN Philippines, April 26) — Listed conglomerate SM Investments is spending ₱3 billion annually in the next five years to double the output of the Tiwi and Mak-ban steam fields to 600 megawatts, company officials said on Wednesday.
SM ventured into renewable energy production last year when it bought out the 100% stake in Philippine Geothermal Production Co. (PGPC), the operator of the Tiwi and Mak-ban geothermal steam fields that currently generate approximately 300 megawatts.
Ian Jason Aguirre, the geothermal unit’s chief finance officer and vice president, said the SM group will drill wells in areas in north and south Luzon to grow its renewable energy portfolio to 600 megawatts over a five-year timeframe.
“We do have five new areas that we are exploring,” Aguirre said. “ We are in the very early stages of exploration in most of those.”
“We see we’ll be drilling explorations wells for a couple of those exploration areas…The long-term plan is to double our existing capacity of 300 megawatts to around 600 megawatts equivalent in the coming years,” he added.
The listed conglomerate also said it is “very bullish” about its expansion plans, unhampered by rising interest rates and slowing domestic consumption.
It is spending a combined ₱90 billion in capital expenditures this year. The bulk of that, or ₱80 billion, has been allocated for building more malls and 348 Alfamart convenience stores outside Metro Manila.
“The market is still big out there, still a lot of pent-up demand even though there’s a risk,” said Jonathan Ng, Chief Finance Officer of SM Retail. “We remain very, very bullish.”
SM is also interested in buying out Philippine Amusement and Gaming Corp. (PAGCOR) casino operations if the Marcos government decides to privatize the state-run gaming regulator’s casino business.
“There’s a wide range of assets being offered,” said Armin Antonio Santos, president and CEO of listed SM subsidiary Premium Leisure Corp.
