Semirara Mining and Power Corp., the country’s main coal producer, reported a 12 percent decline in first-quarter net income to P3.8 billion from P4.4 billion a year earlier, as softer coal shipments and weaker power generation offset relatively steady pricing, highlighting operational headwinds even as global coal benchmarks remained firm.
Coal production rose 4 percent to 5.9 million metric tons, supported by improved access to seams at the Narra mine as it moves toward depletion. Despite higher output, total shipments fell 4 percent to 4.5 million metric tons due to lower export volumes, while domestic demand remained stable. Average selling prices held steady at P2,479 per metric ton, as a higher share of lower-grade shipments tempered the benefit from stronger international indices, including gains in both the Newcastle Index and Indonesian Coal Index.
On the power side, total electricity sales declined 22 percent to 1,120 GWh, driven largely by weaker plant performance during the period. Sales were increasingly weighted toward contracted volumes, which accounted for 61 percent of total output, helping cushion revenue stability. This mix contributed to a 3 percent increase in the average selling price to P4.54 per kWh.
Spot market exposure remained significant, although average prices in the Wholesale Electricity Spot Market eased 5 percent to P3.45 per kWh, reflecting softer demand conditions across the Luzon-Visayas grid.
As of end-March 2026, 49 percent of SMPC’s 860 MW dependable capacity was contracted, leaving the remainder exposed to market fluctuations, particularly in the spot segment.
The results underscore a transitional phase for SMPC as it navigates maturing coal assets and variable plant performance, while relying more heavily on contracted power sales to stabilize earnings amid shifting demand dynamics in both coal and electricity markets.
