Consunji-led Semirara Mining and Power Corporation (SMPC) is looking to increase its figures this year amid higher coal prices and rising electricity prices in the Wholesale Electricity Spot Market (WESM).
In a report by The Philippine Star, SMPC told analysts that it expects average selling prices (ASPs) of coal to remain elevated due to a surge in demand amid geopolitical issues and policy interventions.
Based on SMPC’s forecasts, New castle coal prices may surge in March to $285 per metric ton (MT), a continuous increase from January’s $226 per MT and February’s $238 per MT in February.
The company is also projecting a decline in average coal prices in the second quarter to an average $196.5 per MT for the whole of 2022.
Brokerage firm Regina Capital Development Corporation (RCDC) said that SMPC’s coal business will continue to benefit from attractive selling prices globally.
SMPC is also expecting WESM prices to increase this year to an average of Php6.11 per kilowatt-hour (kWh) amid economic reopening from community quarantine restrictions, election activities, and supply constraints from large uncontracted capacity. The projected average spot market price is higher than the Php4.83/kWh in 2021 and the Php4.66/kWh pre-pandemic in 2019.
Semirara has set a capital expenditure of Php8.8 billion for 2022, Php7 billion of which will be allocated to its coal business. Php1 billion will be for Sem-Calaca Power Corporation, while Php800 million and the balance will be allotted to the Southwest Luzon Power Generation Corp.
On the mining side of the business, SMPC is eyeing to raise its coal production to 14.5-15 million MT this year from 14.3 million MT last year. It also aims to increase sales to 15.5 million MT from 15.2 million MT previously.
SMPC registered a Php16.2 billion net income in 2021, its highest in 41 years.
