The tollway unit of San Miguel Corp. raised its capital expenditure budget by 49.5 percent this year to partially fund the maintenance of South Luzon Expressway and its extension from Batangas province to Quezon province.
SMC SLEX Inc. said Thursday the 2022 capital expenditures would reach P14.19 billion, higher than its earlier announced capex of P9.49 billion.
The company said the capex would fund SLEX Toll Road 4 and other enhancement and expansion projects in SLEX, which include preventive replacement of equipment to ensure that the toll collection system, traffic control and surveillance system and other critical systems of tollway operation are in good working condition.
The company in March 2019 started the construction of the 66.74-kilometer TR4 that would connect Sto. Tomas, Batangas to Lucena City, Quezon.
The toll road will shorten the travel time from Sto. Tomas to Barangay Mayao in Lucena City from the usual three hours to 45 minutes.
The P26.1-billion project is expected to be completed by 2026. TR4 is a part of SLTC’s 30-year concession which will last until 2036.
SMC SLEX posted a net income of P1.58 billion in the first six months, up 21 percent from P1.31 billion it earned in the same period last year.
The company’s total revenue rose 17 percent in the first half to P3.11 billion from P2.66 billion in the same period last year and 1 percent below the pre-pandemic figure of P3.14 billion.
SLEX posted an average daily traffic of 368,683 from January to June, up by 14 percent from 324,824 last year and moving closer to the pre-pandemic figures of 370,612 with the continuing implementation of lowest mobility restrictions of Alert Level 1.
“Volume increased across all classes with highest increase in class 1 and 2 by 15 percent and 9 percent, respectively,” the toll road operator said.
‘’Although SLEX traffic volume and toll revenue for the period ended June 30 are close to achieving the pre-pandemic levels, the extent to which the war and demand for oil supply impacts the company’s financials will depend on future developments,” SMC SLEX said.
Operating expenses went up by 68 percent to P176.1 million from P104.5 million last year.