Semirara Mining and Power Corp., the coal mining and power generation unit of the Consunji family, said Friday second-quarter net income fell 41 percent to P6 billion from P10.2 billion in the same period last year as coal and electricity prices continued to drop from record levels.
“Despite our efforts to manage costs and improve operational efficiencies, the persistent decline in global coal and electricity prices has significantly impacted our financial performance,” said Semirara president and chief operating officer Maria Cristina Gotianun in a disclosure to the stock exchange.
The company said that from April to June, the average Newcastle Index (NEWC) and Indonesian Coal Index 4 (ICI4) both declined by 16 percent. Average NEWC fell from $160.7 to $135.6, while ICI4 dropped from $65.1 to $55.
The average selling price of electricity also decreased by 10 percent, from P6.22 per kilowatt-hour to P5.58/kWh on lower spot market prices and fuel costs for baseload plants.
The second-quarter results pushed Semirara’s first-half net income to P12.6 billion, down 34 percent from P19.2 billion a year earlier on the combined effect of weaker selling prices, higher total coal production costs and increased coal and electricity sales volume.
“The second half of the year should be more of the same for us in terms of coal prices. We also expect coal production, electricity demand and spot prices to taper because of the rainy season,” Gotianun said.
Meanwhile, coal shipment in the second quarter rose 2 percent to 4.6 million metric ton (MT) from 4.5 million MT in the same period last year on stronger domestic demand.
Domestic shipments accelerated 16 percent to 2.2 million MT from 1.9 million MT, driven by higher sales to subsidiaries SEM-Calaca Power Corp. (SCPC) and Southwest Luzon Power Generation Corp. (SLPGC).
Semirara’s coal average selling price declined 33 percent to P2,780 per MT from P4,151 per MT due to stabilizing coal indices and an increased demand for non-commercial grade coal, which is sold at a lower price.
Total production surged 73 percent to 5.2 million MT primarily due to lower rainfall levels and the near depletion of Molave mine last year which created a low base effect.
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