A global movement for clean energy sent coal prices falling in the first quarter, dragging with it the net income of listed integrated energy company, Semirara Mining and Power Corp., which fell 28 percent to P6.5 billion during the period.
Weaker coal prices due to weak demand from developed countries, driven by changes in energy policies, a shift toward renewable sources and slowing economic activities trumped SMPC gains in terms of high coal shipments and local energy sales volume.
The Newcastle index dropped 49 percent to an average USD126.0 while the Indonesian Coal Index 4 retreated 25 percent from an average of USD76.5 to USD57.2.
In the Luzon-Visayas electricity market, average spot prices fell by 27 percent to P4.61 a kiloWatt-hour on lower fuel costs and increased supply.
“While we faced some pricing challenges this quarter, our robust export sales and improved plant performance demonstrate the resilience and adaptability of our operations,” said SMPC president and chief operating officer Maria Cristina Gotianun.
Coal sales increased 37 percent from to 4.8 million metric ton due largely to exports which accelerated by 78 percent to 2.7 MMT.
Domestic shipments grew by 6 percent to 2.1 MMT, influenced by an uptick in internal sales due to the highest recorded overall plant availability in the company’s history, reaching 92 percent.
With better overall plant availability, gross generation increased by 7 percent to 1,408 gigaWatt-hours. Electricity sales volume, as a result, rose 3 percent to 1,281 gWh due to higher bilateral contract quantity sales, which offset the decline in spot market dispatch for the period.
Bilateral contract quantity sales rallied by 38 percent to 499 GWh while spot sales sank by 11 percent to 782 GWh.
Average selling price in the first quarter for Semirara coal shrank by 33 percent to P2,978/MT.
During the same period, the company’s electricity ASP dropped by 28 percemt to P4.47/KWh, largely on account of the sharp drop in wholesale electricity spot prices.
Spot prices plunged by 35 percent to P4.35/KWh while BCQ prices slipped by 5 percent to P4.66/KWh.
