Semirara net income declines 64% to P3 B on low coal and power prices
Integrated energy company Semirara Mining and Power Corporation (SMPC) reported 64 percent fall in consolidated net income to P3.0 billion in the first nine months of 2020 from P8.2 billion in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said it registered a net income of P0.75 billion for the third quarter of this year, down 71 percent from the P2.58 billion in the same quarter of 2019.
For the 9-month period, coal sales stood at 8.4 million MT from 12.1 million MT or a 30 percent drop year-on year. Effective composite average coal price is also down by 20 percent year-on-year from P2,133 per MT in 2019 to P1,712 per MT this period.
Coal production is not significantly affected by the Covid-19 pandemic as it posted 10.9 million MT from 12.0 million MT produced during same period last year with 9 percent drop year-on-year.
In the power segment, the 2x150 MW under Southwest Luzon Power Generation Corporation (SLPGC) was able to book additional contracted capacity of 150MW bringing its contracted capacity to 221 MW.
Year-on-year, net energy generation dropped 35 percent at 864GWh from 1,339GWh in 2019. Unit 4 planned outage was affected by ECQ in the second quarter of 2020 and the unplanned outages incurred by both units.
Total energy sold is down by 23 percent year on year, at 1,045GWh from 1,357GWh in 2019. Composite average price is at P2.79/kwh in 2020 from P4.15/kwh in same period last year.
On the other hand, Sem-Calaca Power Corporation (SCPC) was hit by higher exposure to the WESM with 32 percent contracted capacity or 170MW. Higher energy generation in the third quarter of 2020 was achieved as two units were already operational, after completion of Unit 2 LEP. The excess energy was sold to spot market.
Total energy sold is up by 56 percent year on year at 2,146GWh from 1,380GWh in 2019. Composite average price is at P2.77 per kwh in 2020 from P3.78 per kwh in same period last year.
Core profits of coal segment declined by 57 percent YOY to 3.0 billion. Meanwhile, SLPGC is down by 111 percent in core profits YoY to negative P0.23 billion from P2.08 billion in 2019.
SCPC significantly turned around with P0.17 billion or 120 percent improvement YOY from negative P0.88 billion as the life extension program (LEP) was already completed. SMPC is the only vertically-integrated power producer in the country that mines its own fuel source, allowing it to generate affordable baseload power.