SMPC income up 93% to P2.3-B in first quarter

By Myrna M. Velasco – May 8, 2021, 6:00 AM
from Manila Bulletin

The consolidated net income of Consunji-led Semirara Mining and Power Corporation (SMPC) significantly climbed by 93-percent to P2.3 billion within first quarter this year versus P1.2 billion in the same period last year.

On stream of revenues, that also surged by 27-percent for the company to P9.3 billion in the first three months of 2021 as against a leaner P7.3 billion within the same stretch last year.

The coal mining segment of SMPC’s operations, in particular, had posted 16-percent year on year uptrend, with revenues rising to P7.1 billion from a year-ago level of P6.1 billion.

The firm emphasized that its sales volume had been higher by 21-percent within January-March this year to 3.9 million metric tons (MMT) vis-à-vis 3.2 million MT in a parallel quarter last year.

“Improved market conditions and coal production, coupled with lower depreciation and finance costs, boosted consolidated reported net income by 34-percent from P1.2 billion to P1.7 billion,” the company stated.

SMPC’s coal exports had expanded by 31-percent to 2.1 million MT this year as against 1.6 million MT in the same period in 2020; while domestic sales went up by 11-percent to 1.8 million MT from 1.6 million MT in the prior year.

The company indicated that “total production rose by 42-percent from 3.2 million MT to 4.5 million MT; while effective strip ratio declined by 23-percent from 12.2 to 9.3.”

SMPC specified there had been “reduced water seepages in Molave North Block 7,” and that “allowed higher production in three (3) other active mining blocks, which had significantly lower strip ratios.”

On the electricity generation segment of SMPC’s business, it’s the Southwest Luzon Power Generation Corporation (SLPGC) facility of the company that yielded surge in revenues at the scale of 160-percent to P1.8 billion in the first quarter as against P700 million in the same period in 2020.

“Strong operating results and better market conditions allowed SLPGC to reverse its consolidated net loss of P179 million last year by 446-percent to P620 million net income,” SMPC stressed.

The company said such could be attributed to overall plant availability improvement to 91-percent from a comparatively dismal 51-percent last year; then there was 87-percent jump on its electricity generation to 563 gigawatt-hours from previously at 301 GWh.

For the firm’s Sem-Calaca Power Corporation (SCPC) plant, there had been 30-percent year on year drop on its standalone revenues to P1.0 billion as against P1.5 billion last year due to decline in plant availability; plunge in gross electricity generation; as well as downtrend in sales.

Given the specified factors, that operating segment of SMPC logged 96-percent income contraction to very marginal P5.0 million as against last year’s P124 million.