Poor power sales hit Semirara profit

Semirara Mining and Power Corp. had a weaker start this 2026 with a 12-percent drop in profit in the first quarter due to lower electricity generation.

In a disclosure on Thursday, Semirara said that its net income decreased to P3.8 billion from P4.4 billion.

Its revenues also fell 7 percent to P15.43 billion from P16.51 billion.

During the January to March period, the group’s total power sales declined by 22 percent to 1,120 gigawatt-hours (GWh) from 1,427 GWh due to poor plant operations.

Average selling price, on the other hand, went up by 3 percent to P4.54 per kilowatt-hour (kWh) from P4.42 per kWh.

Aside from its power unit dragging its bottom line, Semirara failed to get a lift from its coal business despite better production figures. This rose by 4 percent to 5.9 million metric tons (MMT) against the previous 5.7 MMT.

Semirara’s coal shipments fell by 4 percent to 4.5 MMT from 4.7 MMT a year ago. While it saw a stable demand in the local market, the firm saw reduced export volumes.

The average selling price for Semirara coal stood at P2,479 per metric ton, almost flat from P2,481.

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The average Newcastle Index—the benchmark price for thermal coal in the Asia-Pacific region—jumped by 13 percent to $118.8 from $105.4 per metric ton.

Semirara is the country’s biggest coal producer, holding a 50-year contract with the government. However, this is expected to lapse in July 2027.

Currently, the group is facing uncertainty as the government moves to defer the coal auction bidding. This, after the Department of Justice rejected Semirara’s plea to extend its contract for 13 more years.