Semirara sees steady earnings

Semirara Mining and Power Corp. expects flat growth this year as the extended shutdown of one of its power plants will weigh down its power generation business, its president and chief operating officer Victor Consunji said.

Last year was a record high for the company with net earnings rising 18 percent to P14.2 billion.

Consunji said the shutdown of one unit of Southwest Luzon Power Generation Corp. (SLPGC) in Calaca, Batangas has affected the company’s first quarter perPryce formance due to lower energy generation.

SLPGC operates the 2x150-MW coal power facility dubbed as Calaca Units 3 and 4

Unit 1 of SLPGC, or Calaca Unit 3, was shut down on March 6 due to abnormal turbine vibration. It will be extended for another 90 days to allow the full completion of repairs of the machine.

The power plant has machinery breakdown and business interruption insurance cover and is closely working and coordinating with reinsurers and their technical consultants to reinstate the unit back to full operation.

However, Semirara expects its coal business to balance out the negative performance of the power generation business.

“We have two business segments, coal and power. So it’s like a see saw,” Semirara chairman and chief executive officer Isidro Consunji said, noting that coal prices this year are higher.

He said they are capitalizing on opportunities brought by the improvement in global coal prices and increase in coal capacities.

Last year, coal production rose to a record 12.2 million metric tons (MT). This year, coal production is expected to reach 14 million MT.