MANILA - San Miguel, one of the Philippines' largest business groups, said yesterday its net profit surged in the first nine months, boosted by ventures in oil and electricity.

The 121-year-old company's diversification strategy should help drive future growth, chief executive Eduardo Cojuangco said as he reported a 41 percent rise in recurring net profit to P11.6 billion ($267.76 million).

Total net profit, including from one-off transactions, from January to September, reached P11.9 billion, with group sales revenues up 143 percent from a year earlier in the same period to P393.4 billion.

"We expect good sales growth in the last quarter, and we have managed to build leadership positions in our new businesses where important trends are driving future growth," Cojuangco said in a statement.

San Miguel, which started off as a beer company, controls Petron Corp., the country's top oil refiner, and also has a minority stake in Manila Electric Co., the largest power distributor.

In August the conglomerate also acquired a controlling stake in the downstream oil business of US firm Exxon Mobil in neighboring Malaysia.

San Miguel said yesterday it was also preparing to expand the Caticlan airport, gateway to the white-sand beach resort of Boracay, one of the country's top tourist draws, and is building a new toll highway to the country's north.

Petron's net profit rose 42 percent from a year earlier to P13.1 billion in the first nine months on a 19 percent revenue expansion, San Miguel said.

Petron's result, and steady growth in beer and food processing, cushioned the soft demand for San Miguel's liquor products.

San Miguel, with a market capitalization of P128.44 billion, saw its shares close 1.12 percent higher to P117 ahead of the profit report, while Petron finished unchanged at P13.70.*AFP

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