Semirara Mining and Power Corp. Posts 2% Profit Increase in First Half Driven by Power Business

MANILA, Philippines — Semirara Mining and Power Corp. (SMPC) saw its earnings in the first half rise by 2 percent, with its power business doing the heavy lifting amid weaker coal performance. The Consunji-led firm said on Wednesday that its net income went up to P8.58 billion from P8.42 billion a year ago. SMPC’s revenues in the January-June period improved by 9 percent to P34.02 billion against the previous P31.33 billion, driven by stronger electricity and coal prices despite lower coal shipments and power sales volumes. Total cash costs, however, increased by 13 percent to P20.44 billion on higher cost of sales and operating expenses. Core earnings before interest, taxes, depreciation and amortization in the first semester stood at P13.58 billion, up 3 percent from P13.17 billion. In the second quarter alone, the group reported a net income of P4.8 billion, 17 percent higher than the P4.1 billion logged last year. The power business provided P4.6 billion, or 96 percent of the earnings, thanks to better plant availability, all-time high generation and higher selling prices. Total power sales jumped 9 percent to a record 1,563 gigawatt hours (GWh) from the 1,435 GWh generated a year ago. The average selling price also climbed by 29 percent to P5.81 per kilowatt hour. SMPC’s coal business, on the other hand, pitched in only P191 million following a drop in production and shipments, coupled with higher fuel costs. The company said its coal production had plunged 55 percent to 2.5 million metric tons (MT) from 5.6 million MT. Shipments likewise declined by 13 percent to 4 million MT from 4.6 million MT. “Operations were affected by stripping activities in the new Narra block and limited production at the Acacia mine,” it said. Semirara coal prices saw improvement, rising by 27 percent to P2,833 per MT from P2,223 per MT. The company’s coal contract with the government is set to expire in July next year. The Department of Energy is preparing for a bidding, with SMPC previously highlighting its readiness and confidence to win in the auction. INQ