Semirara Mining and Power Corporation (SMPC) reported a 41% decline its second quarter earnings, from Php 10.2 billion to Php 6 billion, as coal and power prices continued to drop.
“Despite our efforts to manage costs and improve operational efficiencies, the persistent decline in global coal and electricity prices has significantly impacted our financial performance,” said SMPC president and COO Maria Cristina C. Gotianun.
SMPC noted the decline of the overall average selling price (ASP) of electricity by 10%, from Php 6.22 per kilowatt hour (kWh) to Php 5.58 per kWh, mainly due to a decrease in spot market prices and fuel costs for baseload plants.
On a quarter-over-quarter basis, SMPC’s net income decreased by 8% from Php 6.5 billion, attributed to lower coal and electricity sales volume along with reduced average selling prices.
“The second half of the year should be more of the same for us in terms of coal prices. We also expect coal production, electricity demand and spot prices to taper because of the rainy season,” Gotianun added.
During the first half of the year, the company experienced a 34% drop in earnings, from Php 19.2 billion to Php 12.6 billion. This reduction was attributed to a combination of lower selling prices, increased overall coal production costs, and a rise in coal and electricity sales volumes.
For the firm’s coal operating results, the second quarter yielded positive results, with total coal exports increasing by 2% from 4.5 million metric tons (MMT) to 4.6 MMT due to a rise in domestic demand.
Additionally, there was a 16% increase in domestic shipments, climbing from 1.9 MMT to 2.2 MMT, largely attributed to heightened sales to SEM-Calaca Power Corporation (SCPC) and Southwest Luzon Power Generation Corporation (SLPGC).
However, Semirara saw a 33% decrease in its coal average selling price (ASP), falling from Php 4,151 per metric ton (MT) to Php 2,780 per MT. This was a result of more stable coal indices and an uptick in demand for lower-priced non-commercial grade coal.
Meanwhile, in terms of energy operating performance, the total average capacity on running days grew by 17%, from 685 megawatts (MW) to 801 MW. This was due to the reinstatement of SCPC Unit 2’s reliable capacity to 300 MW on May 27 and decreased deration across SLPGC facilities.
Furthermore, gross generation saw a 12% increase, climbing from 1,212 gigawatt hours (GWh) to 1,352 GWh. This growth was fueled by improved performance and capacity at SLPGC plants and the return to full capacity of SCPC Unit 2.
The rise in gross generation led to a 12% boost in total power sales, increasing from 1,097 GWh to 1,228 GWh. The majority, or 59%, of this electricity was sold on the spot market, with the balance secured through bilateral contracts.
