SCC sees ‘better’ 2nd half income

By Lenie Lectura – September 16, 2024
from Business Mirror

A top executive of Semirara Mining and Power Corp. (PSE: SCC) is banking on an improved performance of the firm’s power business, possibly resulting in a “better income” in the second half of the year.

“We’re looking at a better income; better than the first half this year,” SCC President and COO Maria Cristina C. Gotianun said citing that the 300 megawatts (MW) from a subsidiary “will hopefully cover the outage incidents of the other power plants.”

Gotianun was referring to Sem-Calaca Power Corp. (SCPC) Unit 2, which resumed operations in June this year after it underwent a 77-day planned maintenance outage. She said the plant’s contribution to SCC’s income would be recognized in the second half.

When asked how much revenue will the power business contribute in SCC’s full-year financial performance, Gotianun said “it really depends on the WESM (Wholesale Electricity Spot Market Prices) prices.”

SCC’s first half income declined by 34 percent to P12.6 billion from P19.2 billion in the same period a year ago mainly on account of weakened coal prices. In the second quarter alone, SCC saw its net income plunge by 41 percent to P6 billion, as coal and electricity prices continued to subside from historic levels.

From April to June, the average Newcastle Index (NEWC) and Indonesian Coal Index 4 (ICI4) both declined by 16 percent. The Average NEWC fell from $160.7 to $135.6 while the ICI4 dropped from $65 to $55. Overall average selling price (ASP) of electricity decreased by 10 percent, from P6.22 per kilowatt hour (kWh) to P5.58/kWh, due to lower spot market prices and fuel costs for baseload plants.

Quarter-over-quarter, SCC net income contracted by eight percent from P6.5 billion owing to lower coal and electricity sales volume and average selling prices.