CONSUNJI-LED Semirara Mining and Power Corp. said Wednesday that net income in the first nine months of 2024 dropped 31 percent to P15.7 billion from last year’s P22.6 billion as stabilizing market prices exerted pressure on margins and as the onset of the rainy season dampened shipments.
Third-quarter net income alone fell 8 percent to P3.15 billion from P3.4 billion last year due to reduced contribution from the coal segment, the firm said in a disclosure.
“As anticipated, stabilizing market prices exerted pressure on our margins,” SMPC President and Chief Operating Officer Maria Cristina C. Gotianun said.
“Our third-quarter results also reflect the seasonal impact of the rainy season on coal shipments and electricity prices, both of which we were able to partially offset through focused cost management and operational efficiency initiatives,” she added.
The Average Newcastle Index (NEWC) for the third quarter dipped by 5 percent from $147.8 to $140.3, while the Indonesian Coal Index 4 (ICI4) remained flattish, down one percent to $51.70 from $52.0, the firm noted.
Shipment of coal grew 16 percent in the third quarter, from 2.5 million metric tons (MMT) to 2.9 MMT, thanks to stronger export demand. Shipments to overseas destinations surged by 120 percent, from 0.5 MT to 1.1 MMT, as sales to China increased.
Semirara’s average selling price for coal slipped 15 percent, from P3,315 per metric ton (MT) to P2,811 per MT, after coal indices normalized and shipments of lower-grade coal increased in the third quarter.
Total production rose 7 percent, from 2.8 MMT to 3.0 MMT, on a low-base effect following the near-depletion of its Molave mine and pre-stripping activities at its Narra mine last year.
In the power segment, total average capacity during running days expanded 23 percent to 755 MW, while total gross generation jumped 12 percent to 1,308 gigawatt-hours (GWh), on improved output from both the SEM-Calaca Power Corp. and Southwest Luzon Power Generation Corp. plants.
Consequently, total power sales went up by 10 percent to 1,213 GWh, Semirara said. More than half, or 54 percent, of the generated electricity was sold to the spot market, with the remainder sold under bilateral contract quantities.
“For the remainder of the year, we expect coal and electricity prices to remain stable. Our focus is on meeting our coal production target of 16 million MT and achieving a balance in our contracted generation capacity mix,” Gotianun said.
Semirara shares fell 0.31 percent to P31.85 each on Wednesday.
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