SEMIRARA Mining and Power Corp. (SMPC) said net income fell 12% to P3.8 billion in the primary quarter (Q1), driven by weaker power output and lower coal shipments.
For the January-to-March period, revenues declined 7% to P15.43 billion from P16.51 billion, as electricity sales and exported coal volumes fell, based on the corporate’s financial report released on Thursday.
Coal revenues dropped 5% to P11.18 billion from P11.78 billion, as barely lower shipment volumes offset stable average selling prices.
SMPC produced 5.9 million metric tons (MMT) of coal throughout the quarter, up 4% as a consequence of improved access to coal seams on the Narra mine, which is nearing depletion this 12 months.
Total shipments fell 4% to 4.5 MMT, mainly as a consequence of lower export volumes, while domestic demand remained stable.
The common selling price for Semirara coal was largely flat at P2,479 per metric ton, as a better share of lower-grade shipments offset gains from stronger global coal benchmarks.
Power revenues declined 19% to P5.08 billion, as unplanned outages reduced generation and electricity sales volumes, partly offset by higher contracted sales.
Electricity sold dropped 22% to 1,120 gigawatt-hours, reflecting weaker plant performance.
The common selling price rose 3% to P4.54 per kilowatt-hour (kWh) from P4.42 per kWh, mainly as a consequence of a better share of contracted sales.
As of March 31, 49% of SMPC’s 860 megawatts (MW) of dependable capability was contracted, leaving 363.3 MW available for spot market sales after accounting for station service requirements.
SMPC, a unit of DMCI Holdings, Inc., is the country’s largest coal producer, accounting for 97% of domestic output.
Nonetheless, operations at its essential asset on Semirara Island in Antique face uncertainty as its coal operating contract is about for auction this 12 months after failing to secure renewal.
The Department of Energy said the deadline for the submission and opening of bid documents, originally set for April 28, has been postponed “until further notice.”
Power firms including Meralco PowerGen Corp. and San Miguel Global Power Holdings Corp. have signaled interest in participating within the auction. — Sheldeen Joy Talavera