Semirara Mining and Power Corporation (SMPC) reported a 33% year-on-year drop in net income to PHP 4.1 billion for the second quarter of 2025, citing continued normalization of coal and electricity prices.
“While energy prices eased, we ramped up coal production and boosted power generation. By keeping our costs under control and operating more efficiently, we were able to cushion the impact of weaker prices,” said SMPC President, Chief Operating Officer and Chief Sustainability Officer Maria Cristina C. Gotianun.
The average Newcastle Index fell 26% year-on-year to US]D 100.5, while the Indonesian Coal Index 4 dropped 16% to USD 46.4. Spot electricity prices in the Luzon-Visayas grid declined 42% to PHP 4.04/kWh.
Compared to the previous quarter, SMPC’s earnings dipped 6% from PHP 4.35 billion, as coal performance weakened despite better results from the power business.
For the first half of 2025, consolidated net income also fell 33% to PHP 8.4 billion from PHP 12.6 billion.
“Looking ahead, we expect prices to remain relatively stable. Our focus is on ramping up coal production toward our 18 million metric ton target and optimizing our generation mix to maximize contracted capacity,” Gotianun added.
Coal operations
SMCP’s coal production increased by 8% to 5.6 million metric tons (MMT), due to improved access to coal seams at the Narra mine. Total shipments held at 4.6 MMT, with higher own-plant sales offsetting lower exports.
Average coal selling price declined 20% to PHP 2,223/MT, driven by market corrections and a higher share of lower-grade coal.
Power operations
Power sales rose 17% to 1,435 GWh on stronger plant availability. SCPC Unit 2, which had a 77-day outage last year, contributed to higher capacity.
Of total energy sold, 56% went to the spot market and 44% to bilateral contracts. The average selling price for electricity dropped 19% to PHP 4.51/kWh due to wider supply margins in the WESM.
As of end-June, 38% of SMPC’s 840MW capacity was under contract, with 435.60MW available for spot market sales after station use.
What are your thoughts on SMPC’s strategy amid shifting energy prices? Let us know how you see this shaping the coal and power landscape in the Philippines.**
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