Semirara Mining and Power Corporation (SMPC) posted a 37% decline in consolidated net income to PHP 9.9 billion for the first nine months of 2025. This is down from PHP 15.7 billion a year earlier, attributed to easing market conditions weighed on prices and profitability.

The company said its third-quarter net income fell 53% to PHP 1.5 billion from PHP 3.1 billion in the same period last year, mainly due to lower coal and electricity prices alongside higher production-related expenses.

From January to September, average coal prices dropped as global indices weakened — the Newcastle Index (NEWC) fell 22% to USD 104.5, while the Indonesian Coal Index 4 (ICI4) declined 16% to USD 45.9. Locally, average spot electricity prices in the Luzon-Visayas grid decreased 33%, from PHP 5.59 per kWh to PHP 3.73 per kWh.

Despite the lower price environment, coal production rose 15% to a record 15.1 million metric tons (MMT), driven by better access at the Narra mine, while shipments climbed 5% to 12.9 MMT. However, the average selling price for Semirara coal slipped 19%, from PHP 2,864/MT to PHP 2,325/MT.

Power sales grew 12% to 4,186 gigawatt-hours (GWh), but the average electricity selling price dipped 10% to PHP4.46 per kWh. SMPC said 40% of its 860-megawatt dependable capacity was under contract as of September 2025, with the rest sold on the spot market.

President, COO, and Chief Sustainability Officer Maria Cristina C. Gotianun said SMPC remains focused on maintaining operational reliability, managing costs, and preserving financial flexibility as it navigates current market conditions.

How do you think the decline in global coal and electricity prices will shape SMPC’s performance in the months ahead?

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates.