SMPC Posts 2% Profit Increase to P8.6B in First Half 2026

Semirara Mining and Power Corporation (SMPC), an integrated energy company in the Philippines, has reported a 2% increase in its consolidated net income for the first half of 2026, reaching P8.6 billion (approximately $150 million USD). This growth was primarily driven by stronger earnings from its power business, which successfully offset a decline in its coal operations. The company disclosed its financial results to the Philippine Stock Exchange on Wednesday. For the period spanning January to June 2026, SMPC's net income rose from P8.4 billion in the same period last year. The improved performance in the power segment was crucial in cushioning the impact of weaker coal earnings. Looking at the second quarter of 2026 alone, SMPC's net income saw a more significant surge of 17%, climbing to P4.8 billion from P4.1 billion a year prior. The power segment was the star performer, contributing P4.6 billion, or 96% of the consolidated second-quarter earnings. This success was attributed to enhanced plant availability, record power generation levels, and higher electricity selling prices. Total power sales increased by 9% to a record 1,563 gigawatt-hours (GWh), up from 1,435 GWh, reflecting robust performance across the company's power plants. Of the total electricity sold, 53% was through spot market sales, with the remaining 47% sold under bilateral contracts. The average selling price for electricity rose by 29% to P5.81 per kilowatt-hour (kWh), compared to P4.51 per kWh in the previous year, a rise attributed to higher spot market prices during the quarter. As of June 30, 2026, SMPC reported that 52% of its 860-megawatt (MW) dependable capacity was under contract. The remaining 339.8 MW was available for spot market sales after accounting for station service requirements. In contrast, the coal segment contributed P191 million, or 4% of the consolidated second-quarter earnings. Lower production and shipments, coupled with increased fuel costs, outweighed the recovery in coal selling prices. Coal production fell by 55% to 2.5 million metric tons (MMT) from 5.6 MMT, while shipments declined by 13% to 4.0 MMT from 4.6 MMT. SMPC cited stripping activities in the new Narra block and limited production at the Acacia mine as factors affecting mining operations. Despite the lower volumes, the average selling price of Semirara coal increased by 27% to P2,833 per metric ton from P2,223 per metric ton, supported by stronger global coal benchmark prices, the company said. — MCG, GMA News