Semirara Mining and Power Corporation (SMPC) reported a 17% increase in second-quarter net income to PHP 4.8 billion from PHP 4.1 billion a year earlier, as stronger power operations offset weaker coal earnings.
For the first half of 2026, consolidated net income edged up 2% to PHP 8.6 billion from PHP 8.4 billion, also supported by gains in the power business.
The power segment contributed PHP 4.6 billion, or 96% of consolidated earnings for the quarter, driven by improved plant availability, record generation, and higher selling prices.
Total power sales rose 9% to a record 1,563 gigawatt-hours from 1,435 GWh.
Spot-market volumes accounted for 53% of total electricity sold, while the remaining 47% was covered by bilateral contracts.
SMPC’s average electricity selling price increased 29% to PHP 5.81 per kilowatt-hour from PHP 4.51 per kWh, reflecting higher prices in the Wholesale Electricity Spot Market (WESM) during the quarter.
As of June 30, 52% of the company’s 860-megawatt dependable capacity was contracted.
SMPC also had 339.8 MW available for spot-market sales after accounting for station service requirements, or the electricity used by the power plants for their own operations.
The coal segment, meanwhile, contributed PHP 191 million, or only 4% of consolidated second-quarter earnings.
The company said lower production and shipments, combined with higher fuel costs, outweighed the recovery in coal selling prices.
Coal production fell 55% to 2.5 million metric tons from 5.6 million metric tons, while shipments declined 13% to 4.0 million metric tons from 4.6 million metric tons.
Operations were affected by stripping activities at the new Narra block and limited production at the Acacia mine.
The average selling price of Semirara coal nevertheless increased 27% to PHP 2,833 per metric ton from PHP 2,223 per metric ton, supported by stronger global coal benchmarks.
The results marked a sharp shift in SMPC’s earnings mix during the quarter, with the power business accounting for nearly all consolidated profit while coal contributed only a small share.
Can stronger plant availability and spot-market sales continue to offset weaker coal output in the second half of 2026?
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