Power revenues fire up Semirara’s H1 earnings

MANILA, Philippines - Higher power sales fired up Semirara Mining and Power Corp.’s earnings in the first half of 2017.

In a disclosure to the Philippine Stock Exchange yesterday, Semirara reported a 24 percent increase in net income to P7.86 billion in the January to June period, from P6.36 billion in the same period last year.

Its coal segment contributed P4.23 billion, Sem-Calaca Power Corp. (SCPC) added P2.14 billion and Southwest Luzon Power Generation Corp. (SLPGC) pitched in P1.5 billion.

In its coal mine, Semirara’s production rose by a fifth from 5.88 million metric tons (MTs) to 7.35 million MT, inclusive of low-grade coal of 772,000 tons.

However, coal sales volume slightly dropped by four percent from 6.6 million MT to 6.3 million MT mainly due to timing difference of export deliveries.

In terms of its power business, energy generation of SCPC increased 14 percent from 1,212 gigawatt-hours (gwh) to 1,383 gwh. Total energy sold slightly increased one percent from 1,390 gwh to 1401 gwh.

“Although Unit 1 was on maintenance shutdown the whole of first quarter and only came back online in mid-April this year, average load increased to 244 megawatts (MW) from 184 MW last year. Meanwhile, Unit 2 was operating more reliably this year,” Semirara said.

Meanwhile, SLPGC recorded an eight percent rise in generation at 817 gwh from 754 gwh last year. Its total average load of both plants increased six percent from last year.

Total energy sold increased two percent to 771 gwh from 757 gwh last year.

“Both units are already on commercial operation starting August 2016; its certificate of compliance from the Energy Regulatory Commission, which allows the plants to run at full capacity of 150 MW each, was issued on May 15, 2017,” the company said.

SCPC operates the 2x300-MW coal plant while SLPGC operates the newer 2x150 MW power plant, both of which are in Calaca, Batangas.

Meanwhile, Semirara’s board of directors also announced the declaration of special cash dividends of P5 per share or a total of P5.33 billion, which will be sourced from its unappropriated retained earnings for the interim period as of June 30, 2017.

“This was prompted by the change in project timeline of its new investments, thus cash allocated per budget coming from cash generated from operations was realigned for special cash dividend to its shareholders,” the company said.