Semirara profit falls in Q1 on weaker power, coal sales

SEMIRARA Mining and Power Corp. (SMPC) said net income fell 12% to P3.8 billion in the first quarter (Q1), driven by weaker power output and lower coal shipments.

For the January-to-March period, revenues declined 7% to P15.43 billion from P16.51 billion, as electricity sales and exported coal volumes fell, based on the company’s financial report released on Thursday.

Coal revenues dropped 5% to P11.18 billion from P11.78 billion, as slightly lower shipment volumes offset stable average selling prices.

SMPC produced 5.9 million metric tons (MMT) of coal during the quarter, up 4% due to improved access to coal seams at the Narra mine, which is nearing depletion this year.

Total shipments fell 4% to 4.5 MMT, mainly due to lower export volumes, while domestic demand remained stable.

The average selling price for Semirara coal was largely flat at P2,479 per metric ton, as a higher share of lower-grade shipments offset gains from stronger global coal benchmarks.

Power revenues declined 19% to P5.08 billion, as unplanned outages reduced generation and electricity sales volumes, partly offset by higher contracted sales.

Electricity sold dropped 22% to 1,120 gigawatt-hours, reflecting weaker plant performance.

The average selling price rose 3% to P4.54 per kilowatt-hour (kWh) from P4.42 per kWh, mainly due to a higher share of contracted sales.

As of March 31, 49% of SMPC’s 860 megawatts (MW) of dependable capacity was contracted, leaving 363.3 MW available for spot market sales after accounting for station service requirements.

SMPC, a unit of DMCI Holdings, Inc., is the country’s largest coal producer, accounting for 97% of domestic output.

However, operations at its main asset on Semirara Island in Antique face uncertainty as its coal operating contract is set for auction this year after failing to secure renewal.

The Department of Energy said the deadline for the submission and opening of bid documents, originally set for April 28, has been postponed “until further notice.”

Power companies including Meralco PowerGen Corp. and San Miguel Global Power Holdings Corp. have signaled interest in participating in the auction. — Sheldeen Joy Talavera