Daven Tamayo

SM Investments Corp to expand 2GO, renewable energy unit

SM Investments Corporation (SMIC) Chairman Jose T. Sio speaks with ABS-CBN News at their headquarters at the Mall of Asia in Pasay, May 10, 2017. Jonathan Cellona, ABS-CBN News

Article (news)

Jekki Pascual

ABS-CBN News

MANILA — SM Investments Corporation said all its core businesses are flourishing and now they want to further expand its portfolio investments or the non-core units particularly in the logistics and renewable energy sectors.At its Annual Stockholders Meeting, SMIC officials said its main businesses like BDO, SMDC, as well as the malls unit are already among the leading players in their sectors. The company expects all units will continue to grow even amid uncertainties like the US tariff issue.“Retail, banking, and property are closely tied to the domsetic economy and the everyday needs of Filipinos. These sectors have shown stability and relevance even as market conditions changed,” said SMIC Chairman Amando Tetangco, Jr.Now it wants to further beef up its portfolio companies like 2GO in the logistics sector and the Philippine Geothermal Production Company. The portfolio investments contributed 7 percent to the consolidated earnings of SMIC in 2024 and officials want to raise that to the mid-teens level in the medium term.SMIC President and CEO Frederic DyBuncio said they want to help the government reach its renewable energy target by 2030. “We started drilling in our new concession area. Right now we have two operating steam fields, one is in Macban, one is in Tiwi which is in Albay. You spent $100,000 a day to drill a new geothermal well,” he said.On logistics, DyBuncio also see huge demand in shipping and delivery with the rising growth in the provincial areas. He said aside from carrying passengers on their ships, they also carry huge equipment for new projects in the provinces.“Those project logistics are the ones that carry these big heavy equipment, solar panels, wind turbines, generators, huge trucks for the mining industry, for example. That’s really one of our fastest growing sectors in the logistics space,” he added.The growth of the e-commerce sector is also helping beef up demand for logistic in the country. Aside from 2GO, SMIC also owns AirSpeed.“We move several— almost 100,000 packages a day across the country,” he said.SMIC is also expected to grow further in the coming years with start of horizontal development construction on the 360-hectare integrated Manila Bay reclamation project by 2027. IThe company also announced that it has bought back about P345 million worth of shares under its first ever and biggest P60 billion share buyback program which began in March.

SMIC President and CEO Frederic DyBuncio said they want to help the government reach its renewable energy target by 2030.

SMIC President and CEO Frederic DyBuncio said they want to help the government reach its renewable energy target by 2030.