Pasay city: Publicly listed conglomerate SM Investments Corp. (SMIC) is setting its sights on renewable energy (RE) as the next significant growth area, fueled by the increasing domestic demand for electricity.
According to Philippines News Agency, SMIC President and Chief Executive Officer Frederic DyBuncio highlighted that despite the currently modest contribution of its geothermal arm, Philippine Geothermal Production Inc. (PGPC), to the group's portfolio as of the second quarter, the business is primed for considerable expansion. During a press briefing in Pasay City, DyBuncio stated, "For the renewable business, we actually have now six concessions, which we're trying to develop. And renewables is something that we're very, very focused on."
In the first half of 2026, PGPC experienced a 6-percent increase in revenues, reaching PHP2.5 billion, while net income was recorded at PHP1 billion. The growth in the geothermal sector was partly attributed to the resumption of trading in the Wholesale Electricity Spot Market (WESM) after the Energy Regulatory Commission (ERC) lifted a temporary suspension from March 26 to April 30, which had been imposed to manage energy supply risks and price volatility amid the Middle East energy crisis.
PGPC operates the Mak-Ban and Tiwi steam fields located in Batangas, Laguna, and Albay, generating up to 400 megawatts of renewable energy. DyBuncio opted not to give a year-end output forecast for the RE business, noting that future production levels are contingent on forthcoming drilling operations required to sustain and enhance steam output.
Meanwhile, SMIC recorded an 8-percent annual increase in first-half consolidated net income, reaching PHP45.9 billion. This growth was attributed to robust consumer demand and improved performance across all business segments. DyBuncio remarked, "The Filipino consumer was tested during the first half of the year, but our businesses proved to be resilient. Steady demand across our consumer-led businesses, plus solid contributions from our portfolio companies, continue to reflect the strength of our diversified business model. This gives us the confidence to keep investing for long-term growth."
