Semirara Q1 profit down to P4.4B
Semirara Mining and Power Corp. (SMPC) continued to get the brunt from lower coal prices as its earnings in the first quarter dropped by 33 percent.
In a disclosure on Friday, the company said its net income in the period declined to P4.4 billion from P6.5 billion.
While its coal production climbed by 16 percent to 5.7 million metric tons (MT), its average selling price decreased to P2,481 per MT from P2,978. SMPC said this showed normalizing market prices and stronger demand for lower-grade coal.
Total shipments went down by 2 percent to 4.7 million MT from 4.8 million MT on weaker domestic sales, while foreign shipment remained flat at 2.7 million MT.
It noted the average Newcastle Index—the benchmark price for seaborne thermal coal in the Asia-Pacific region—fell by 16 percent to $105.4 from $126. The Indonesian Coal Index, on the other hand, declined 14 percent from $57.2 to $49.3.
Meanwhile, power generation improved in the January-March period, but income contribution still dipped from P2.27 billion to P2 billion.
The group said total generation jumped 9 percent to 1,535 gigawatt hours (GWh) from 1,408 GWh following the expanded capacity of SEM-Calaca Power Cop.
Total power sales also increased by 11 percent to 1,427 GWh, 64 percent of which were sold to the spot market.
Despite the earnings slump, an executive remained bullish about weathering the challenging sector.
“We navigated the softer energy market through improved power generation and coal production, strengthened contracting strategies, and disciplined cost management,” said Maria Cristina Gotianun, SMPC president and chief operating officer and chief sustainability officer.
“These fundamentals will continue to guide us in an increasingly dynamic energy landscape.”
