Semirara Mining 9-mo income jumps 244%

SEMIRARA Mining and Power Corp. (SMPC) on Friday said its net income soared by 244-percent to p10.29 billion for the first nine months of the year, as compared to P2.99 billion posted in the same period last year.

In a disclosure on Friday, the integrated energy company noted that the latest figure exceeded its pre-pandemic annual net income of P9.7 billion.

Semirara Mining attributed the triple-digit growth to the 38-percent rise in average selling prices and 51-percent upturn in sales volume of coal.

“We expect our coal segment to continue to do well for the rest of the year because of elevated coal prices and sustained strong demand from China,” Maria Cristina Gotianun, Semirara Mining president and chief operating officer, said.

In terms of net income contribution, coal accounted for 78 percent of the company’s net income, while subsidiaries Sem-Calaca Power Corp. and Southwest Luzon Power Generation Corp. contributed 17 percent and 5 percent, respectively.

For the third quarter alone, Semirara Mining’s net income reached P4 billion, nearly six times the P750 million earnings it recorded in the same period in 2020.

During the period, earnings from coal soared by 748 percent to P3.63 billion from P428 million.

Revenues, on the other hand, rose by 160 percent to P10.88 billion from P4.19 billion.

“The 50-percent drop in coal shipments to own power plants and Q3 (third quarter) beginning inventory of 1.8 MMT (million metric tons) allowed the Group to more than double (108 percent) its exports to 2.7 MMT despite a marked decline in coal production,” Semirara Mining said.

Average selling prices from July to September rallied 82 percent on the back of higher exports, which grew 108 percent year on year.

“Global coal prices are seeing a dramatic spike this year due to severe demand and supply imbalances owing to China’s ban on Australian coal; strong rebound in economic activities; low stockpiles in China, Europe and India; Covid-19 restrictions, heavy rainfall in major coal mines; and logistical disruptions,” Semirara Mining said.

Meanwhile, the company’s power portfolio suffered from higher plant outages in the third quarter.

Total power sales fell by 34 percent to 1,032 gigawatt hours as three of the four SMPC plants were down for various periods during the quarter.

Semirara Mining shares gained 25 centavos or 0.96 percent to settle at P26.30 each on Friday.