Semirara earns P8.4 billion in 6 months

MANILA, Philippines — Consunji-led Semirara Mining and Power Corp. (SMPC) saw its earnings decline by a third in the first half, weighed down by softer coal and electricity selling prices.

The company reported a net income of P8.4 billion from January to June, down by 33 percent from last year’s P12.6 billion.

Revenues went down by 14 percent to P31.3 billion from P36.6 billion due to lower coal sales and flat performance in the power segment.

In the second quarter alone, SMPC’s earnings plunged by 33 percent to P4.1 billion from P6.1 billion, while its revenues were lower by 18 percent to P14.8 billion from P18.2 billion.

“While energy prices eased, we ramped up coal production and boosted power generation,” SMPC president, COO and chief sustainability officer Maria Cristina Gotianun said.

Through prudent cost management and improved operational efficiency, Gotianun said the integrated energy company was able to mitigate the impact of weaker prices.

From April to June, total power sales climbed by 17 percent to 1,435 gigawatt-hours from 1,228 GWh, thanks to higher plant availability and increased average capacity.

More than half or 56 percent of the total energy sales came from the power spot market, while the remaining 44 percent were contracted through bilateral agreements.

Average electricity selling prices, however, decreased by 19 percent to P4.51 per kilowatt-hour from P5.58 per kWh amid higher supply margins in the spot market, SMPC said.

For the coal segment, the company’s total shipments were flat at 4.6 million metric tons (MT), with increased own plant sales offsetting lower foreign shipments.

SMPC said foreign shipments slipped by eight percent to 2.2 million MT from 2.4 million MT, mainly driven by lower sales to China, which remained its primary export destination.

Domestic shipments, meanwhile, edged nine percent higher to 2.4 million MT from 2.2 million MT, with deliveries to own plants rising by 30 percent due to higher generation.

Total production grew by eight percent to 5.6 million MT from 5.2 million MT following improved access to coal seams at the Narra mine in Antique.

“Looking ahead, we expect prices to remain relatively stable. Our focus is on ramping up coal production toward our 18 million metric ton target and optimizing our generation mix to maximize contracted capacity,” Gotianun said.

SMPC is the leading domestic coal producer, supplying fuel to power plants, cement factories and industrial facilities across the country. Aside from China, it also exports to South Korea, India, Vietnam and Brunei.