Weaker output drags Semirara Q1 income

MANILA, Philippines — Semirara Mining and Power Corp. (SMPC) of the Consunji Group ended the first quarter with lower earnings, mainly due to reduced electricity output.

The operator of the country’s largest coal mining site reported a net income of P3.8 billion in the first three months, down 12 percent from P4.4 billion a year ago.

Revenues slid by seven percent to P15.43 billion from P16.51 billion as both power sales and coal shipment volumes declined during the period.

From January to March, SMPC’s power sales contracted by 22 percent to 1,120 gigawatt-hours from 1,426 GWh amid weaker plant performance.

Average spot power prices in the Luzon–Visayas grid eased by five percent to P3.45 per kilowatt-hour from P3.63 per kWh, driven by weaker demand.

The company provides baseload electricity supply to the national grid through bilateral contracts and the spot market.

As for the coal business, SMPC’s production went up by four percent to 5.9 million metric tons from 5.7 million MT following improved access to coal seams at the Narra mine.

Shipments, however, dipped by four percent to 4.5 million MT from 4.7 million MT amid stable domestic demand and lower export volumes.

“Average selling price for Semirara coal remained broadly steady at P2,479 per MT from P2,481, as a higher share of lower-grade shipments offset the impact of stronger global coal benchmarks,” the company said.

During the period, the average Newcastle Index, a key pricing benchmark for physical coal contracts in Asia, rose by 13 percent to $118.8 per MT from $105.4.

SMPC accounts for more than 90 percent of domestic coal production. It also exports coal to China, South Korea, Brunei and other nearby markets.

The integrated energy company currently holds the exclusive right to explore, develop and conduct coal-mining operations on Semirara Island in Antique.

However, with the government rejecting its request for an extension, the coal operating contract is now up for grabs.

Given this, SMPC is preparing its best bid for the coal auction, which has been postponed “until further notice,” as first reported by The STAR.