Semirara Mining and Power Corp. (SMPC) reported on Tuesday that its consolidated net income fell by 37 percent to P22.62 billion at end-September this year from P35.95 billion in the same period a year ago.
The “high base effect and stabilizing global coal market” caused its revenues to decline by 23 percent to P56.2 billion. The company also realized weaker coal shipments and selling prices during the period.
The average selling price of coal in the third quarter declined by 36 percent to P3,315 per metric ton (MT) from P5,173 per MT. Total coal shipments also went down by 22 percent to 2.5 million MT.
The global energy market, the company said, shifted its focus this year toward stabilizing the supply chain, following disruptions caused by geopolitical and regulatory events last year. The market’s stabilization is mirrored in the movement of global indices.
“These scenarios underscored the significance of coal in driving the energy transition, fulfilling baseload energy requirements, and addressing industrial demand,” the company told the stock exchange.
It can be recalled that in 2022, SMPC recorded an all-time high profit of nearly P40 billion due to robust domestic coal shipments, higher spot electricity sales, and elevated market prices.
From January to September this year, coal contribution to the group slipped by 52 percent from P29.37 billion to P13.97 billion, while contribution from the power generation business improved by 31 percent from P6.58 billion to P8.61 billion.
SMPC’s power subsidiaries are SEM-Calaca Power Corp. (SCPC) and Southwest Luzon Power Generation Corp. (SLPGC). They generate baseload power for the Luzon-Visayas grid. They also supply electricity through bilateral contracts and the wholesale electricity spot market.
SCPC accounted for the marked improvement, accelerating by 41 percent to P6.95 billion from P4.94 billion. SLPGC contribution was flattish at P1.63 billion versus P1.66 billion.
Coal remained as the biggest contributor, accounting for 62 percent of the group net income, followed by SCPC, 31 percent, and SLPGC, 7 percent.
Image credits: from www.semiraramining.com