SMPC earnings drop 66% due to pandemic, import quotas

Semirara records P4.42 Billion net income for first quarter 2017

Semirara Mining and Power Corporation (SMPC) posted a 66% decline in its net income after tax to Php3.3 billion in 2020 from Php9.6 billion in 2019.

Based on a report from the Manila Bulletin, the Consuji-led company attributed the earnings drop due to the decline in energy sales and the sharp demand contraction for coal caused by the effects of the COVID-19 pandemic and China’s import quotas.

SMPC’s revenues went down by 36.2% to Php23.3 billion last year compared to Php44.3 billion the prior year, while its coal business saw its income slashed by 71% to Php1.8 billion from Php6.21 billion year-on-year. 

Ironically, power generating subsidiary Sem-Calaca Power Corporation (SCPC) reported an enormous income increase of 2,083% to Php1.31 billion in 2020 from just Php6 million in 2019. This comes as the firm’s 600-megawatt power plant in Calaca, Batangas reported an increase in its gross generation by 106% to 3,123 gigawatts (GW) compared to 1,519GW year-on-year.

Sales mainly increased for traded capacity in the Wholesale Electricity Spot Market (WESM) with a huge growth of 600%. SMPC reported that sales for both spot and contracted capacities from SCPC plants went up 46% to 2,692GW last year compared to 1,848GW the year prior. 

Nonetheless, another Calaca-based power generating subsidiary South Luzon Power Generation Corporation (SLPGC) recorded an income decline of 97% to P0.09 billion from P3.53 billion year-on-year, as the firm’s gross generation dropped 25% 1,554GW in 2020 from 2,070GW previously due to unexpected outages. 

Sales from said SLPCG also declined by 18% to 1,526GW from 1,854GW in 2019, with the mother firm noting that 57% of the subsidiary’s sales were also channeled through WESM.

On Thursday, SMPC announced that its President and COO Maria Cristina Gotianun resigned as concurrent chief risk officer.