Semirara Mining posted 26% decline in six-month net earnings to P19.2b
By Alena Mae S. Flores – August 7, 2023, 8:10 pm
from manilastandard.net
Semirara Mining and Power Corp. said Monday earnings dropped 26 percent in the first six months to P19.2 billion from P25.8 billion in the same period last year on high base effect and normalizing coal indices.
SMPC said in a disclosure to the Philippine Stock Exchange net income reached P10.2 billion in the second quarter, down 5 percent from a record high of P10.8 billion in the same period last year.
“Even with lower coal prices, we delivered our second-best first-half results because of China demand recovery and the improved performance of Sem-Calaca Power Corporation SCPC Unit 2,” said SMPC president and chief operating officer Maria Cristina Gotianun.
SMPC said it delivered robust financial results because of higher coal shipments, improved plant availability and increased electricity sales at elevated prices despite significant corrections in global coal index prices and the impact of high base effect.
The average Newcastle price plunged 54 percent from $320.3 to $148.9 in the first six months of 2023,while average ICI4 price dropped 17 percent from $85.7 to $71.
“The second half will be challenging because of the rainy season and planned shutdown of our three power plants but with our high starting inventory and strategic pivot to the spot market, we believe we can weather these headwinds,” Gotianun said.
SMPC said that on a quarter-over-quarter basis, net income grew by 13 percent from P9 billion.
Total coal shipments in the second quarter increased 22 percent from 3.7 million metric tons to 4.5 MMT on higher deliveries to China and South Korea in the second quarter.
Shipments to China increased 75 percent from 0.8 MMT to 1.4 MMT, while shipments to South Korea rose 21 percent from 0.8 MMT to 1.0 MMT.
Domestic sales were flat at 1.9 MMT as lower demand from cement factories (-33 percent) and other industrial plants (-50 percent) offset the 14-percent increase in sales to SMPC-owned plants.
Semirara coal average selling price declined 23 percent in the second quarter from an all-time high of P5,399 per metric ton to P4,151 per MT.
Total production went down 12 percent from 3.4 MMT to 3.0 MMT with the onset of rains and ongoing stripping activities in Molave South Block 6 and Narra North Block 1.
Total inventory grew by 12 percent from 2.5 MMT to 2.8 MMT on stable production and weaker domestic sales.
