Semirara Mining and Power Corp. recorded PHP 19.2 billion in its net income from P25.8 billion in the same period last year, a 26 percent plunge for the first half of 2023.
The decrease was mainly due to the high base effect and normalizing coal prices, the company disclosed in the Philippine Stock Exchange (PSE), based on a report by Philippine Star.
However, with the help of recoil from China and an improved performance from Sem-Calaca Power Corp. Unit 2, the figures were the “second-best” first-half earnings for the mining firm.
The records revealed a 54% year-on-year price drop on average Newcastle to $148.9 while the average price ICI4 went down 17% to $71.
SMPC President and Chief Operating Officer Maria Cristina Gotianun stated that the remaining months of the year will be a challenging period due to the rainy season and the targeted power shutdown of their three power plants.
The company’s total production dropped by 12% in its second quarter to 3.0 MMT because of the bad weather and stripping activities in Molave South Block 6 and Narra North Block 1.
Meanwhile, the company’s second-quarter earnings were affected by the impact of lower coal prices, which had a 5% drop on an annual basis to PHP 10.2 billion. On the other hand, its quarter-on-quarter profits rose by 13%.
Due to stable production and weaker domestic sales, Semirara’s total inventory grew 12% year-on-year to 2.8 MMT during the April-June period.
The firm recorded an improved total gross generation at 27% to 1,212 GWh in the second quarter which boosted sales by 22%. Meanwhile, around 66% of overall sales went to the spot market.
The mining firm said they are expecting more headwinds for the rest of 2023. However, Gotianun affirms that the company can cope with its high starting inventory and strategic pivot to the spot market.
