Semirara to boost 2022 capex to P8.8 billion

By Alena Mae S. Flores – March 11, 2022, 7:45 pm
from manilastandard.net

Semirara Mining and Power Corp. plans to increase its capital expenditures to P8.8 billion this year from P3.9 billion in 2021.

SMPC said in a report to analysts it is allocating the bulk of its capex for coal at P7 billion, while power subsidiaries Sem-Calaca Power Corp. and Southwest Luzon Power Generation Corp. are spending P1 billion and P800 million, respectively.

SMPC spent bulk of its 2021 capex to refleeting and continuing water seepage management programs of the coal segment, while the rest went to power plant maintenance.

Meanwhile, SMPC expects the high oil and electricity prices to further boost profitability this year. Coal prices to remain elevated in 2022 on continued demand recovery and the Ukraine-Russia conflict.

SMPC also sees some price volatility, with China and Indonesia possibly issuing policy interventions to secure their respective supplies.