Semirara Mining and Power Corp., an integrated energy company, on Monday reported P10.2 billion in net income in the second quarter, a 5 percent decline from the record quarterly-high P10.8 billion last year due to the significant decline in global coal prices.
Even so, Semirara said it still delivered robust financial results because of higher coal shipments, improved plant availability and increased electricity sales at elevated prices. Compared to the first quarter, net income in the April-June period was up 13 percent.
For the first six months of the year, net income dropped 26 percent to P19.2 billion mainly due to high base effect and falling coal prices.
From January to June, average Newcastle coal price plunged by 54 percent to USD148.90 per ton from USD320.30 while average ICI4 price dropped by 17 percent to USD71.
“Even with lower coal prices, we delivered our second-best first half results because of China demand recovery and the improved performance of Sem-Calaca Power Corpor. Unit 2,” said Semirara president and chief operating office Maria Cristina Gotianun.
“The second half will be challenging because of the rainy season and planned shutdown of our three power plants but with our high starting inventory and strategic pivot to the spot market, we believe we can weather these headwinds,” she added.
Total coal shipments in the second quarter alone increased by 22 percent year-on-year to 4.5 million metric tons on higher deliveries to China and South Korea. Domestic sales were flat at 1.9 MMT as demand from cement factories dropped 33 percent and other industrial plants fell 50 percent, offsetting the 14 percent increase in sale to Semirara-owned power plants.
Semirara coal average selling price during the period declined by 23 precent to P4,151 per metric ton from its all-time high of P5,399 per metric ton. Total production declined by 12 percent to 3.0 MMT due to the onset of rains and ongoing stripping activities in Molave South Block 6 and Narra North Block 1. Total inventory grew by 12 percent to 2.8 MMT on stable production and weaker domestic sales. Year-to-date, inventory rose by 40 percent from 2.0 MMT to 2.8 MMT.
Overall power plant availability from April to June surged to 80 percent from 64 percent on the improved availability of SCPC Unit 2. Its commercial operation last October 9, 2022 boosted total average capacity by 35 percent to 685 megaWatts. Total gross generation improved by 27 percent to 1,212 gigaWatt-hours, driving up total power sales up 22 percent to 1,097 GWh.
