Semirara Mining and Power Corp. (SMPC) on Monday reported a 29.7 percent decline in net income for 2024, to P19.6 billion from P27.9 billion in 2023, despite posting record-high coal shipments.
The company attributes the drop to the normalization of energy markets, with both coal and electricity prices declining. Coal prices fell sharply in 2024, with the Newcastle Index dropping by 22 percent, and the Indonesian Coal Index 4 reducing by 15 percent. Additionally, electricity spot market prices in the Luzon-Visayas grid eased by 14 percent following the addition of new power capacities and lower fuel costs.
Revenue also saw a 15 percent decrease, totaling P65.19 billion compared to P76.96 billion in 2023, due to the lower selling price of coal and electricity. However, SMPC said it achieved new records in coal shipments, reaching 16.5 million metric tons, a 4.4 percent increase from the previous record of 15.8 million metric tons.
The company also reported an 18.7 percent increase in gross power generation, reaching 5,358 gigawatt hours (GWh) in 2024, up from 4,515 GWh in 2023.
SMPC president Maria Cristina Gotianun, said the company’s focus is on maximizing production and staying disciplined in its strategy despite market fluctuations. The company plans to allocate P6.9 billion in capital expenditures for 2025, with the majority directed toward re-fleeting initiatives and mining equipment acquisitions.
SMPC continues to be the only vertically-integrated power producer in the Philippines, mining its own coal to fuel its operations.
