Semirara income drops to P19.6 billion in 2024

MANILA, Philippines — The weaker selling prices in the energy market weighed on Consunji-led Semirara Mining and Power Corp. (SMPC), with its earnings declining by 30 percent to P19.63 billion in 2024 from P27.9 billion in 2023.

The company’s net income was lower last year but still higher than the P16.2 billion reported in 2021 and the 2019 pre-pandemic level of P9.68 billion.

Revenues likewise contracted, sinking by 15 percent to P65.19 billion from P76.6 billion on lower selling prices of coal and electricity.

“Despite price corrections, we focused on key factors within our control – maximizing production, achieving record-high coal shipments and power generation,” SMPC president, COO and chief sustainability officer Maria Cristina Gotianun said.

The country’s leading coal producer saw an all-time high coal sales volume of 16.5 million metric tons in 2024, outpacing its previous record of 15.8 million MT in 2023.

SMPC’s coal production reached 16 million MT for the third straight year, while its gross power generation totaled 5,358 gigawatt-hours (GWh).

“Our disciplined strategy and dedicated team played a crucial role in navigating energy market shifts,” Gotianun said.

In the fourth quarter alone, SMPC reported a net income of P3.9 billion, down by 26 percent from the P5.3 billion earned in the same period in 2023.

The decline was attributed to the weaker contribution from the coal segment despite “relatively stable” output from the power segment.

Coal shipments during the quarter fell by 19 percent to 4.3 million MT from 5.3 million MT previously on decreased production and limited inventory of commercial-grade coal.

SMPC supplies coal to power plants, cement factories and industrial facilities across the country and exports coal to China, South Korea, Brunei and other nearby markets.

Fourth-quarter power sales, meanwhile, sizzled by 13 percent to 1,223 GWh from 1,078 GWh, with the bulk of generated electricity sold to the spot market – the centralized venue for trading electricity.

SMPC, through its wholly owned subsidiaries, supplies electricity through bilateral contracts and sells any excess power to the spot market.

As of end-December 2024, the company had at least 504 megawatts of capacity available for sale to the spot market.

SMPC has allocated P6.9 billion for capital spending this year, the bulk of which will be used for refleeting initiatives and additional acquisition of mining and support equipment.

Last week, SMPC officials confirmed to The STAR that the energy department approved the company’s planned P291-billion coal mine complex expansion project in Antique.

The expansion project aims to operate the company’s existing Molave and Narra pits and eventually run the new Acacia pit once the coal deposits in the existing pits are depleted.