SMIC mulls expanding logistics, geothermal arms

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SM Investments Corp. is looking to expand its portfolio to drive growth.

Frederick DyBuncio, SM Investments chief executive officer, said  the conglomerate is focused on its logistics and geothermal businesses.

“These are the two key portfolio companies, which we continue to really focus on and grow, because we believe that potential is there. And for these portfolio companies that we invest in, before we invest in them, we ask ourselves, is this business scalable? Is it going to be scalable enough for us to be able to achieve either one or number two position in that sector? If  the answer to those is yes, then we look at and invest in these companies,” he said.

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“Our three core businesses,  retail, property and banking, despite their individual sizes being so massive already will continue to grow and we are in expansion mode,” he added.

DyBuncio  in  logistics, SM Investments is increasing the number of   2Go’s ships after the delivery of two vessels in December and January, bringing the company’s fleet to 10 cargo and passenger vessels.

DyBuncio said unit Allfirst Equity Holdings Inc., which holds interest in the Tiwi and MakBan geothermal steam fields in Albay and in Laguna-Batangas areas, is looking to develop six more wells, which could reflect on the company’s bottomline in the next five years.

Allfirst is the holding company for Philippine Geothermal Production Co. Inc. (PGPC), which generate geothermal steam sufficient to produce approximately 300 megawatts (MW) of electricity.

With the new wells, PGPC eyes to hit 420MW dependable capacity in the medium term.

DyBuncio said  SM Investments is looking at venturing into the data center business, partnering with a group that has a landbank for putting up huge data center facility in Batangas.

DuBuncio said the data center venture capitalizes on the boom of the artificial intelligence (AI) that requires massive infrastructure.

“Given that AI coming in, there’s going to be more need for servers to store all of this data,” he said.

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