The Semirara Mining and Power Corp.’s net earnings increased by almost a fifth on robust coal sales volume and prices and higher generation from coal plants.
In a disclosure, the company said that its consolidated net income after tax increased by 18 percent to P14.14 billion versus P12.04 billion.
This means that the consolidated earnings per share of P3.32, 17 percent higher versus P2.83 in 2016.
Semirara’s coal business had a share of P6.08 billion, with Sem-Calaca Power Corp. (SCPC) contributing P4.55 billion and Southwest Luzon Power Generation Corp. (SLPGC) with P3.74 billion.
The company said that the improvement of its coal profitability was brought by the increased average selling price and a slight increase in the volume sold.
“Production and coal sales set new record highs at 13.2 million tons and 13.1 million tons, respectively,” it said.
Meanwhile in Semirara’s power business, SCPC – that operates the 2×300-megawatt (MW) coal plant in Calaca, Batangas – had two significant “non-recurring transactions” last year that “had an impact on profitability.”
The power unit had a partial recognition of income from disputed receivables from the Power Sector Assets and Liabilities Management Corp. (PSALM) amounting to P330 million.
It also had an accelerated depreciation – amounting to P840 million – relative to the life extension projects of the first and second unit which will start at the later part of 2018.
SCPC improved its capacity push generation to 3, 515 gigawatt-hours (GWh), up 21 percent versus 2,905 GWh in 2016.
“Unit 1 recorded an average capacity of 257 MW as compared to only 180MW in 2016,” Semirara said.
This means that total energy sold became seven percent higher from 3,322 GWh to 3,560 GWh.
SLPGC recorded a lower standalone net income following unrealized revenue of P219 million from the fair market value gain relative to the company’s financial contract with a customer and net settlement income of P133 million following the final turnover of the power plants.
“The drop in net income after tax is mostly a result of higher real property taxes due on the new power assets, as well as full depreciation cost of the power plants in the current year,” Semirara said.
