Integrated energy company Semirara Mining and Power Corp. (SMPC) posted higher second-quarter earnings as a strong rebound in its power business more than compensated for weaker coal production, highlighting the benefits of its integrated business model amid volatile energy markets.
SMPC said net income rose 17 percent to P4.8 billion in the April-to-June period from P4.1 billion a year earlier. For the first six months, earnings edged up 2.0 percent to P8.6 billion from P8.4 billion, as improved power generation offset softer contributions from its coal operations.
The power business emerged as the company’s main earnings engine, contributing P4.6 billion, or 96 percent, of second-quarter profit.
The sharp improvement came as better plant availability lifted electricity generation and enabled Semirara to capitalize on firmer spot market prices. Power sales climbed 9.0 percent to a record 1,563 gigawatt-hours, while the average selling price jumped 29 percent to P5.81 per kilowatt-hour from P4.51 a year earlier.
More than half of electricity sold during the quarter was dispatched through the Wholesale Electricity Spot Market, allowing the company to benefit from elevated market prices. As of end-June, only 52 percent of SMPC’s 860-megawatt dependable capacity had been contracted, leaving about 340 MW available for spot sales, giving the company flexibility to capture favorable pricing.
Coal, however, remained a drag on earnings.
The segment contributed just P191 million, or 4 percent, of second-quarter profit as output plunged 55 percent to 2.5 million metric tons following extensive stripping activities at the new Narra mining block and limited production from the Acacia mine. Coal shipments also fell 13 percent to 4 million metric tons.
Still, stronger global coal prices provided some relief. The average selling price of Semirara coal rose 27 percent to P2,833 per metric ton, partially cushioning the impact of lower volumes and higher fuel costs.
The latest results underscore how SMPC’s growing power business is increasingly buffering earnings against the cyclical swings of the coal market, even as mining operations undergo production transitions.
