Semirara Mining and Power Corp., the energy company of the Consunji Group, on Wednesday posted an 8 percent year-on-year decline in third-quarter earnings to P3.1 billion as margins from its coal business took a hit from stabilizing market conditions and seasonal impacts from the rainy season.
Semirara Mining president and chief operating officer, Maria Cristina C. Gotianun, said the company had anticipated these margin pressures and were able to offset them through focused cost management and operational efficiency initiatives.
From July to September, the Newcastle Index fell by 5 percent while the Indonesian Coal Index 4 remained stable. Those indices help determine coal prices.
Semirara Mining managed to keep its average selling price of electricity steady, benefiting from strong bilateral contracts, although spot market prices weakened.
Quarter-over-quarter, third quarter net income dropped by 48 percent, reflecting seasonal challenges and softer selling prices.
For the first nine months of the year, the company’s net income fell by 31 percent to P15.71 billion on account of lower market prices and rising operational costs.
Gotianun emphasized the company’s goal of meeting a coal production target of 16 million metric tons while balancing its generation capacity.
In the coal segment, total shipments rose by 16 percent to 2.9 million metric tons, driven by strong export demand, particularly from China. However, the average selling price for coal decreased by 15 percent. Total production increased by 7 percent due to operational improvements.
On the power front, total gross generation climbed by 12 percent, aided by enhanced plant performance, while total electricity sales surged by 10 percent. Moving forward, SMPC aims to stabilize prices and optimize production strategies to meet consumer energy demands.
