SMPC posts record high income of P25.8-B income in 1st half

Published August 3, 2022, 2:53 PM

by Myrna M. Velasco

Consunji-led Semirara Mining and Power Corporation (SMPC) consolidated net income initial the first six months this year leaped to record high P25.8 billion, a quadruple climb or 311 percent higher from P6.8 billion in the same period last year on spikes in coal prices globally.

While there had been contraction in coal sales, the second quarter profit of the company still soared to P10.8 billion, logging 171 percent hike from P4.0 billion in the comparative April to June period last year.

SMPC traced its growth to “all-time high coal selling prices coupled with higher spot electricity sales volume at elevated prices.”

According to SMPC President and Chief Operating Officer Maria Cristina C. Gotianun, the company was able to sustain the acceleration on its profitability within January to June because of unabated spikes in coal prices in the world market.

She nevertheless qualified that “as expected, we had a weaker performance quarter over quarter because of the China lockdowns but compared to last year, we did very well.”

Gotianun further stated “we maintain our view that the second semester will be anemic because of market volatility and unfavorable weather conditions.”

SMPC expounded that for the second quarter, the contributions from its coal segment venture expanded by roughly 195-percent to P9 billion this year from P3.0 billion in 2021.

Additionally, the company’s takings from the power generation segment of its business had been on upturn – with its SEM-Calaca Power Corporation (SCPC) income contribution climbing by 81-percent to P1.0 billion versus year ago’s P581 million, while its other power facility – the Southwest Luzon Power Generation Corporation (SLPGC), registered 107-percent increase in earnings to P742 million from P359 million within the comparative period.

SMPC reported that the coal segment of its business remained the major income-driver despite the 24-percent drop in coal shipments in the second quarter to 3.7 million metric tons (MT) from last year’s heftier 4.9 million MT – and that had been mainly attributed to the Covid-19 lockdowns enforced by China, as well as its shift to Russian coal.

The Consunji firm similarly specified that its export sales in the second quarter contracted by 44-percent to 1.8 million MT from 3.2 million MT in the same period a year ago; while it had been the domestic sales which posted uptick to 1.9 million MT from last year’s 1.7MT.

Still, the company highlighted that the dip in export shipments had been offset by continuing surge in coal prices – primarily posting 126-percent increase on average within April-June to P5,399 from last year’s P2,393 per metric ton.

SMPC likewise divulged that “ heavy rainfall and higher stripping activities curbed coal production,” – logging at least 21-percent decline to 3.4 million MT from 4.3 million MT in the prior year.

“This, together with lower sales volume, raised high-grade coal inventory by 50-percent from 1.0 million MT to 1.5 million MT,” the Consunji-led firm emphasized.

In the company’s power generation business, overall performance had been relatively weak as sales decelerated by 9.0-percent to 900 gigawatt-hours (GWh) from 987 GWh in 2021; and the bulk of traded electricity had been via the spot market.

SMPC further conveyed that gross generation in the second quarter had likewise been considerably flat at 984 GWh mainly attributed to the forced outages suffered by Unit 2 of its Sem-Calaca coal plant due to a defective generator stator.