Consunj-led Semirara Mining and Power Corp. (SMPC) reported Monday that its earnings fell 37-percent to P9.9 billion at end-September this year from P15.7 billion last year, mainly due to weaker coal and electricity prices and higher production-related costs.
‘This has been a more difficult year operationally, but we continue to adapt,’ said SMPC President, Chief Operating Officer and Chief Sustainability Officer Maria Cristina C. Gotianun. ‘Our priority is to strengthen reliability, manage costs, and preserve our financial flexibility to navigate changing market and operating conditions.’
From January to September, the average Newcastle Index (NEWC) fell 22 percent year-on-year to $104.5, while the Indonesian Coal Index 4 (ICI4) dropped by 16 percent to $45.90. Average spot electricity prices in the Luzon-Visayas grid likewise receded by 33 percent, from P5.59 per kilowatt hour (kWh) to P3.73/kWh.
For the third quarter alone, consolidated net income declined by 53 percent to P1.5 billion, from P3.1 billion last year, as lower energy prices continued to weigh on profitability.
From January to September, coal total shipments rose 5 percent to a record high of 12.9 million metric tons (MMT), from 12.3 MMT, driven by stronger exports and higher deliveries to own power plants.
Average selling price (ASP) for Semirara coal declined 19 percent to P2,325/MT from P2,864/MT, in line with market indices and a higher share of lower-grade shipments.
Coal production went up by 15 percent to 15.1 MMT from 13.1 MMT, also a record high, following improved access to coal seams at the Narra mine.
Total power sales grew 12 percent to a record 4,186 gigawatt hours (GWh), from 3,722 GWh, on the back of improved plant performance.
Of the total energy sold, 57 percent was sold to the spot market, while the remaining 43 percent was covered by bilateral contract quantities (BCQs).
Overall average selling price for electricity declined by 10 percent to P4.46/kWh from P4.93/kWh, reflecting wider supply margins, amid stable demand in the Wholesale Electricity Spot Market (WESM).
As of end-September, 40 percent of SMPC’s 860-megawatt (MW) total dependable capacity was contracted. After accounting for periodic station service, 429.60 MW was available for spot market sales.
SMPC’s two power units-Sem-Calaca Power Corp. and Southwest Luzon Power Generation Corp.-provide baseload power to the national grid through BCQ and the WESM.