Semirara Mining and Power Corporation (SMPC) reported a 12% drop in net income to PHP 3.8 billion in the first quarter of 2026, lower from PHP 4.4 billion in the same period last year, attributed to reduced power generation and coal shipments.

The company said its performance was affected mainly by weaker output from its power plants, even as its coal operations showed mixed results.

Coal production increased by 4% to 5.9 million metric tons (MMT), supported by improved access to coal seams at the Narra mine.

However, total coal shipments declined by 4% to 4.5 MMT, mainly due to lower export volumes, while domestic demand remained stable.

Coal prices were largely unchanged during the period, with the average selling price at PHP 2,479 per metric ton, slightly lower than PHP 2,481 a year earlier.

The power segment recorded a sharper decline, with total electricity sales dropping 22% to 1,120 gigawatt-hours (GWh) from 1,427 GWh, mainly due to weaker plant performance during the quarter.

Despite lower sales volumes, the average electricity selling price rose by 3% to PHP 4.54 per kilowatt-hour, driven by a higher share of contracted sales.

Meanwhile, spot electricity prices in the Luzon-Visayas grid declined by 5% to PHP 3.45 per kWh, reflecting softer demand in the Wholesale Electricity Spot Market.

As of March 31, about 49% of SMPC’s 860 megawatt capacity was under contract, with the remaining output exposed to spot market conditions..

How can integrated energy companies balance coal production and power generation challenges to maintain stable earnings?

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