Semirara Mining and Power Corp. said Wednesday that its net profit last year dropped 30 percent to P27.9 billion, still the second highest in the listed integrated energy company’s history.
All-time high coal shipments and record electricity sales softened the impact of weaker selling prices for both coal and electricity.
“Last year, we expected energy prices to stabilize so we focused on boosting our mine and plant outputs. Our people played a crucial role in helping us manage the challenges of a fluctuating energy market,” said Semirara Mining president and chief operating officer Maria Cristina C. Gotianun.
Coal sales volume increased by 7 percent, from 14.8 million metric tons to 15.8 million MT, driven by a 14-percent rise in exports to 8.1 million MT, compensating for the stagnant domestic sales at 7.7 million MT.
Average selling price of Semirara coal fell by 26 percent to P3,796, as index prices retreated due to an oversupply from Indonesia, a warm winter and subdued global economic growth.
Combined electricity sales from Semirara Mining subsidiaries SEM-Calaca Power Corp. and Southwest Luzon Power Generation Corp. expanded by 26 percent to 4,515 gigaWatt-hours, driven by 86-percent upturn in SEM-Calaca gross generation to 3,192 GWh.
Electricity ASP narrowed by 5 percent from P5.67 to P5.40 on the combined impact of higher demand, entry of new capacity and interconnection of the Visayas and Mindanao grids.
In the fourth quarter alone, SMPC recorded a 36-percent jump in consolidated net income from P3.9 billion to P5.3 billion primarily due to higher coal shipments.
Coal sales from October to December surged by 77 percent from 3.0 MMT to 5.3 MMT, as exports more than tripled (218 percent) from 1.1 MMT to 3.5 MMT.
During the same period, ASP of Semirara coal declined by 32 percent from P4,861 to P3,305 due to correcting market prices.
The power segment reported a 32-percent increase in electricity sales as spot sales more than doubled 731 gWh from 335 gWh on higher gross generation and reduced bilateral contracts.
The price of contracted electricity declined by 27 percent to P4.29 per kiloWAtt-hour on ample supply margins and receding fuel costs.
