Consunji-led Semirara Mining and Power Corporation (SMPC) reported a 244% surge in net income for the first nine months of the year from Php3 billion in 2020 to P10.3 billion in 2021, exceeding its pre-pandemic annual net income of Php9.7 billion.
SMPC said the triple-digit growth was mainly attributable to the 38% rise in average selling prices and 51% upturn in sales volume of coal.
“We expect our coal segment to continue to do well for the rest of the year because of elevated coal prices and sustained strong demand from China,” said SMPC President and COO Maria Cristina C. Gotianun.
For the third quarter alone, SMPC netted Php4 billion, nearly six times the Php750 million earnings it recorded in the same period last year.
Average selling prices from July to September rallied 82% on the back of higher exports, which grew 108% year-on-year.
Global coal prices are seeing a dramatic spike this year due to severe demand and supply imbalances owing to China’s ban on Australian coal, strong rebound in economic activities, low stockpiles in China, Europe and India, COVID-19 restrictions, heavy rainfall in major coal mines and logistical disruptions.
In terms of net income contribution, coal accounted for 78% percent of SMPC’s net income while subsidiaries Sem-Calaca Power Corporation and Southwest Luzon Power Generation Corporation contributed 17% percent and 5% percent, respectively.