SMPC profit leaps on coal price rally

BY LENIE LECTURA – FEBRUARY 28, 2022
from Business Mirror

Consunji-led Semirara Mining and Power Corp. (SMPC) posted its highest-ever net income last year.

It ended 2021 with a net income of P16.2 billion, a 393-percent leap from the previous year’s P3.3 billion, mainly due to an 8-percent rise in coal production, 16-percent jump in coal shipments and 71-percent surge in average coal selling prices.

“Our results reflect the hard work of our people. They rose to the challenges of the pandemic and delivered exceptional value to our stakeholders,” said SMPC President and COO Maria Cristina C. Gotianun.

Contributions from the coal segment grew by 535 percent to P11.4 billion from P1.8 billion while both power subsidiaries delivered improved performances.

Sem-Calaca Power Corp. contributed P3.3 billion, a 154-percent upturn from P1.3 billion the previous year. Meanwhile, Southwest Luzon Power Generation Co. recorded a 1,563-percent rise in contributions to P1.4 billion from P87 million.

For the fourth quarter alone, SMPC saw its net income balloon to nearly 20 times to P5.9 billion from P297 million, its highest profit level for any given quarter.

Average selling prices from October to December rallied by 229 percent to P4,452 from P1,354 as global supply disruptions and accelerated demand from China, India and Europe pushed index prices to record levels.

Elevated coal prices offset the impact of lower shipments, which was nearly halved to 2.5 million metric tons (MMT) from 4.6 MMT owing to weather-induced coal production drops in the third quarter.