Lower coal, power prices send Semirara’s full-year profit tumbling
The downtrend in Semirara Mining and Power Corp.’s (SMPC) net income continued last year, with a 33-percent plunge blamed on weaker coal and electricity prices.
The Consunji-led firm said in a statement on Wednesday its profit fell to P13.1 billion from P19.6 billion a year ago.
Reduced shipments and costlier production expenses also pulled down SMPC’s bottom line.
“Prices were softer this year, but our operations still delivered record coal production and electricity sales,” said Maria Cristina Gotianun, president and COO of SMPC.
“We’re also working to broaden our markets while keeping our mines and power plants running well,” Gotianun said.
The company’s coal output surged 24 percent to an all-time high of 19.9 million metric tons from January to December. But the volume of cargoes went down by 7 percent due to the timing of the export shipments and lower demand.
Electricity sales also hit a record 5,296 gigawatt hours (GWh), up by 7 percent from 4,945 GWh, on better plant performance.
However, disappointing prices at the market dampened these record achievements.
In 2025, the average Newcastle Index—the benchmark price for thermal coal in the Asia-Pacific region, dropped by 22 percent to $105.6 per metric ton from $135.2 per MT.
The average selling price for Semirara coal, in particular, slipped by 19 percent to P2,302 per metric ton from P2,853 a ton.
In addition, electricity prices at the spot market slid 8 percent to P4.38 per kilowatt hour (kWh) from P4.75 kWh.
The company is confident about expanding its market reach, with initial shipments sealed for Indonesia.
SMPC, the largest coal producer in the Philippines, has a 50-year contract with the government that will expire in July 2027. But, as the Department of Justice junked its plea to extend the contract for 13 more years, the group may lose its hold on the Semirara coal mine.
Still, the firm earlier assured investors that its business operations remained steady, while setting its eyes on winning the coal bid round scheduled for this year.
Analysts also said SMPC has the chance not just to secure more years operating the coal site on the island, but also to gain other areas with confirmed reserves as the auction includes Cagayan and Isabela provinces.
