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Semirara Mining’s earnings climb to nearly P11 billion

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SEMIRARA Mining and Power Corp. (SMPC) reported a second-quarter net income of P10.8 billion, nearly triple the P4 billion a year ago, driven by higher coal and electricity prices.

“As expected, we had a weaker performance quarter over quarter because of the China lockdowns but compared to last year, we did very well,” SMPC President and Chief Operating Officer Maria Cristina C. Gotianun said in a disclosure on Wednesday.

“We maintain our view that the second semester will be anemic because of market volatility and unfavorable weather conditions,” she added.

Of the total, contributions from the coal segment grew by 195% to P9 billion, followed by Sem-Calaca Power Corp. (SCPC), which was up 81% to P1 billion; and Southwest Luzon Power Generation Corp. (SLPGC), which increased by 107% to P742 million.

In the second quarter, total shipments from coal operations dropped by 24% to 3.7 million metric tons (MMT) to 4.9 MMT as China imposed coronavirus disease 2019 (COVID-19) lockdowns and shifted to Russian coal.

Export sales by 44% to 1.8 MMT from 3.2 MMT while domestic sales grew by 12% to 1.9 MMT from 1.7 MMT.

“Buffering the impact of lower shipments was the 126% increase in average selling prices from P2,393 to P5,399, the highest for any given quarter,” SMPC said.

“Heavy rainfall and higher stripping activities curbed coal production, dropping 21% to 3.4 MMT from 4.3 MMT. This, together with lower sales volume, raised high-grade coal inventory by 50% to 1.5 MMT from 1.0 MMT,” it added.

Meanwhile, the overall gross generation from its power operations was “mostly flat” at 984 gigawatt-hours (GWh) due to the forced outage of SCPC’s second unit because of a defective generator stator.

Total electricity sales contracted by 9% to 900 GWh from 987 GWh. Of the total, 56% was sold to the spot market while the remainder was sold through bilateral contracts.

“High uncontracted capacity allowed SMPC to boost spot electricity sales by 188% to 507 GWh from 176 GWh. Average spot selling prices remained elevated at P6.91 versus P6.87 last year,” the firm added.

Total spot purchases also went down by 60% to P245 million from P617 million on higher plant availability.

At the stock exchange on Wednesday, SMPC shares rose by 0.74% or 30 centavos to close at P40.85 apiece. — Luisa Maria Jacinta C. Jocson