Semirara income 26% down to ₱6 B in H1

The consolidated net income of Consunji-led Semirara Mining and Power Corporation had been pulled down 26 percent to 16.0 billion in the first six months this year versus 18.1 billion in the same period last year.

Despite the improved financial outcome in the second quarter – in which earnings had climbed significantly by 57 percent to 13.67 billion, the company noted that the overall income over the six-month stretch still ended up in a downturn.

SMPC said its profitability in April to June recovered due to the power segment of its business – income had risen from 12.34 billion in the first quarter of the year.

The company said its generating units under Southwest Luzon Power Generation Corporation (SLPGC) “posted higher availability” and this was also augmented by higher prices in the Wholesale Electricity Spot Market.

In the company’s coal mining business segment, it reported increase in volumes that were sold by a magnitude of 21 percent.

As emphasized by the Consunji firm, “the higher volume sold by coal segment and higher WESM prices, mitigated the drop in earnings as of first half 2019.”

Net of the write-offs, the coal business unit turned in 14.64 billion in earnings; while SLPGC contributed 11.62 billion. Nevertheless, its Sem-Calaca Power Corporation facility reported a loss of 1242 million.

It has to be noted that the unit 1 of the Calaca plant had been on shutdown for the whole first half; while its second unit will also be on “life extension rehab” process this second half. The facility comprises of two units at 300MW capacity each.

Company executives previously indicated that the foregone revenues from the scheduled shutdown of the Calaca plant had already been accounted for in this year’s financial performance forecasts.