Semirara Mining and Power Corporation (SMPC) reported a 33% drop in net income to PHP 13.1 billion in 2025, down from PHP 19.6 billion in 2024, attributed to lower coal and electricity prices, reduced shipments, and higher production costs.

Despite the earnings decline, the integrated energy company said its operations delivered record coal production and electricity sales during the year.

“Prices were softer this year, but our operations still delivered record coal production and electricity sales. We’re also working to broaden our markets while keeping our mines and power plants running well,” said SMPC President, Chief Operating Officer and Chief Sustainability Officer Maria Cristina C. Gotianun.

The company said global coal benchmarks declined during the period, affecting revenues. The Newcastle Index fell 22% year-on-year to USD 105.6, from USD 135.2, while the Indonesian Coal Index 4 dropped 15% to USD 46.1, from USD 53.9.

Average spot electricity prices in the Luzon-Visayas grid also declined 27% to PHP 3.73 per kWh, from PHP 5.14 per kWh, amidst wider supply margins in the Wholesale Electricity Spot Market.

For the fourth quarter of 2025, SMPC reported consolidated net income of PHP 3.2 billion, down 19% from PHP 3.9 billion in the same period the previous year.

The company attributed the quarterly decline to lower coal shipments, reduced electricity sales, and softer energy prices affecting both its coal and power segments.

In the coal segment, production rose 24% to a record 19.9 million metric tons (MMT) in 2025, up from 16.0 MMT the previous year.

SMPC said the increase was driven by improved access to coal seams at the Narra mine and the approval of an Environmental Compliance Certificate allowing 20 MMT annual capacity.

However, total coal shipments declined 7% to 15.4 MMT, from 16.5 MMT, due to the timing of export shipments and weaker demand for lower-calorific coal.

The average selling price of Semirara coal fell 19% to PHP 2,302 per metric ton, from PHP 2,853, reflecting softer global coal benchmarks and a higher share of lower-calorific shipments.

In the power segment, SMPC reported record electricity sales of 5,296 gigawatt-hours (GWh) in 2025, up 7% from 4,945 GWh the previous year.

Gross power generation also increased 6% to 5,695 GWh, from 5,358 GWh, supported by improved plant reliability.

Of the total electricity sold during the year, 54% was dispatched to the spot market, while 46% was delivered under bilateral contract quantities.

The average electricity selling price declined 8% to PHP 4.38 per kWh, from PHP 4.75 per kWh, reflecting wider supply margins in the Wholesale Electricity Spot Market.

As of end-2025, 42% of SMPC’s 860 MW dependable capacity was contracted, leaving 422.3 MW available for spot market sales after accounting for station service requirements.

How might shifting coal and electricity prices affect the outlook for power producers in the Philippines?

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