Consunji-led Semirara Mining and Power Corp. (SMPC) saw a 12-percent drop in net income in the first quarter of 2026 as lower power output and reduced coal deliveries weighed on performance.

In a statement on Thursday, April 30, SMPC disclosed net income of ₱3.8 billion for the January-to-March period, down from ₱4.4 billion in the same period last year.

The earnings decline was primarily attributed to a sharp double-digit drop in power sales, which overshadowed modest gains in coal production and firmer global coal benchmarks.

Coal production during the quarter rose four percent to 5.9 million metric tons (MMT) from 5.7 MMT in 2025, driven by improved access to coal seams at Narra mine as it nears the end of its operational life.

However, higher output did not translate into stronger sales, as total shipments slipped four percent to 4.5 MMT from 4.7 MMT due to weaker export demand.

The average selling price for Semirara coal remained virtually flat at ₱2,479 per metric ton (MT), as increased shipments of lower-grade coal offset the 13-percent rise in Newcastle Index and six-percent increase in Indonesian Coal Index 4.

The company’s power business was the main drag on overall performance, with total electricity sales plunging 22 percent to 1,120 gigawatt-hours (GWh) from 1,427 GWh.

This significant decline was attributed to weaker plant reliability and performance during the period.

To cushion the impact of lower output, SMPC shifted its sales mix toward contracted volumes, which accounted for 61 percent of total energy sold. This strategy helped raise the average selling price of electricity by three percent to ₱4.54 per kilowatt-hour (kWh), even as spot prices in Luzon-Visayas grid fell by five percent to ₱3.45/kWh amid softer demand.

As of end-March, the company maintained dependable capacity of 860 megawatts (MW), with nearly half already secured under bilateral contracts. - Gabriell Christel Galang