SAN Miguel Corp.'s (SMC) tollway unit saw first quarter net income rise 21 percent to P1.16 billion from P964 million a year earlier, driven by increased vehicle traffic and toll revenues.

SMC SLEX Inc., the operator of the South Luzon Expressway (SLEx), said toll revenues reached P1.94 billion, up 15 percent from P1.68 billion last year and with the average transactions at 94 percent for RFIDs and 6 percent for cash payments.

The tollway recorded an average daily traffic (ADT) of 357,774 vehicles for the period, a 2 percent increase from 352,185 vehicles last year.

Cost of services, meanwhile, was said to have risen by P30.1 million due to higher operations and maintenance fees, share remittances to Philippine National Construction Corp. (PNCC), amortization of service concession rights, provisions for resurfacing and maintenance oblivion, and concession insurance premiums.

Operating expenses, however, dropped by 22 percent to P67.3 million due to lower depreciation and amortization, advertising costs, and repair and maintenance expenses for vehicle and equipment.

SMC SLEX has allotted P8.06 billion in capital expenditures (capex) for 2024 to partially finance its TR4 project and the widening of the existing SLEx.

Upon completion in 2026, the P50-billion, 66.74-kilometer TR4 toll road project will connect Sto. Tomas, Batangas, to Lucena City, Quezon, and is expected to reduce travel time between the two points from the current three hours to just 45 minutes or so.

The SLEx currently spans 36.1 km from Alabang, Muntinlupa, to Sto. Tomas, Batangas. It is one of the three major expressways that link Metro Manila to the key southern provinces of the Philippines.

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