Semirara Q3 income down 37% to Php22.6B

Due to reduced coal shipments and declining selling prices, Consunji-led Semirara Mining and Power Corporation (SMPC) recorded P22.6 billion, a 37% drop in its net income for the third quarter of 2023.

“The third quarter is always a slow period for us in terms of production and demand because of the rainy season. Last year was an outlier because of high index prices,” said its President and COO, Maria Cristina C. Gotianun.

The average selling price of Semirara coal dropped by 23% from January to September, going from P5,224 per metric ton (MT) to P4,042/MT. This is driven by stabilizing index prices.

Similarly, the average Newcastle price in the same timeframe experienced a 48% decrease, from US$3574 to US$186, while the average Indonesian Coal Index 4 slipped by 23%, from US$84 to US$65.

SMPC’s nine-month coal production decreased by 14%, from a record high of 13.7 million metric tons (MMT) to 11.8 MMT, primarily due to increased stripping activities in Molave and Narra mines. At the same time, its coal shipments also fell by 12%, from 11.9 MMT to 10.5 MMT.

On the other hand, its power arm recorded an outstanding overall plant performance over nine months leading to a 28% rise in gross generation and a 24% increase in sales volume, from 2,881-gigawatt hours (GWh) to 3,695 GWh and 2,778 GWh to 3,437 GWh respectively.

The average selling price from January to September saw a 2% uptick, rising from P5.62 to P5.75. This increase was attributed to higher contract prices offsetting the impact of receding spot market prices.

Meanwhile, the average spot selling price fell by 14%, from P7.33 to P6.33 due to fuel price stabilization and the addition of extra capacity to the main grid.

Semirara Q3 income down 37% to Php22.6B

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