Semirara’s nine-month income dropped 37%
By Alena Mae S. Flores – October 31, 2023, 8:40 pm
from manilastandard.net
Semirara Mining and Power Corp. (SMPC) said Tuesday its nine-month net income fell 37 percent to P22.6 billion from P35.9 billion a year ago on lower coal shipments and selling prices.
SMPC also saw its third-quarter net income plunge 66 percent to P3.4 billion from P10.1 billion in the same period last year.
“The third quarter is always a slow period for us in terms of production and demand because of the rainy season. Last year was an outlier because of high index prices,” said SMPC president and chief operating officer Maria Cristina Gotianun.
“Our power business really stepped up this year. Their all-time high results offset the sharp earnings drop in our coal business,” Gotianun said.
The average selling price of Semirara coal declined 23 percent from January to September to P4,042 per metric ton from P5,224 per MT on stabilizing index prices.
The average Newcastle price in the same period slumped by 48 percent from $357.4 to $186, while the average Indonesian coal index slipped by 23 percent from $84 to $65.
SMPC said nine-month coal production decreased by 14 percent from a record 13.7 million metric tons (MMT) last year to 11.8 MMT this year on higher stripping activities in Molave and Narra mines.
Coal shipments in the same period dropped 12 percent from 11.9 MMT to 10.5 MMT.
Meanwhile, the power segment recorded its best overall plant performance over the nine-month period as plant availability improved 31 percent from 62 percent to 81 percent.
Gross power generation accelerated by 28 percent from 2,881 gigawatt hours (GWh) to 3,695 GWh while sales volume rose 24 percent from 2,778 GWh to 3,437 GWh.
The average electricity selling price posted a 2-percent uptick from P5.62 per kWh to P5.75 per kWh as higher contract prices offset the impact of receding spot market prices.
It said the average spot selling price fell by 14 percent from P7.33 per kWh to P6.33 per kWh largely due to the stabilization of fuel prices and entry of additional capacity into the main grid.
