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Even with stable coal prices, the Consunji-led Semirara Mining and Power Corporation (SMPC) reported a dip in its net income during the first quarter of the year.
In a disclosure to the Philippine Stock Exchange on Friday, May 2, SMPC said its net income decreased by 33 percent, from ₱6.5 billion in the first quarter of 2024 to ₱4.4 billion in the same period this year.
Despite this overall financial downturn, the company's group earnings rose by 11 percent to ₱3.92 billion compared to the previous quarter. Stronger contributions from its power segment mainly fueled this improvement.
According to SMPC, their total gross power generation increased nine percent, from 1,408 gigawatt hours (GWh) to 1,535 GWh. This improved generation stemmed from the expanded average capacity of the SEM-Calaca Power Corporation (SCPC), which restored its Unit 2's dependable capacity to 300 megawatts (MW) last year.
"Consequently, total power sales grew by 11 percent, from 1,281 GWh to 1,427 GWh, with the majority of the generated power sold to the spot market," SMPC noted. However, the overall average selling price (ASP) slightly decreased by one percent to ₱4.42 per kilowatt-hour (kWh) from ₱4.47/kWh.
Meanwhile, the average spot prices in the Luzon-Visayas grid experienced a significant 21 percent drop to ₱3.63/kWh due to a higher supply capacity.
"At the end of the period, 40 percent of the power segment's 840 MW dependable capacity is contracted, aligning with Management's target to contract approximately half of its net selling capacity," the company stated, adding that it has around 421.60 MW of sellable capacity available to the Wholesale Electricity Spot Market (WESM).
In their coal segment, production jumped by a substantial 16 percent, from 4.9 million metric tons (MMT) to 5.7 MMT. This strong performance was attributed to their access to the Narra Mine following pre-stripping activities last year.
Overall shipments, however, saw a marginal decline to 4.7 MMT due to lower domestic sales. On a positive note, foreign shipments showed steady growth to 2.7 MMT, supported by demand from China, Brunei, and Vietnam.
Despite stable market prices, the Semirara coal ASP slowed down by 17 percent, from ₱2,978 per metric ton (MT) to ₱2,581 per MT, influenced by a higher proportion of lower-grade coal shipments.
Maria Cristina Gotianun, president and chief operating officer of SMPC, expressed confidence that these figures would inform their strategy for the upcoming quarter.
"We navigated the softer energy market through improved power generation and coal production, strengthened contracting strategies, and disciplined cost management. These fundamentals will continue to guide us in an increasingly dynamic energy landscape," she affirmed.
