Semirara Mining and Power Corporation (SMPC) reports a 28% decline in net income in the first quarter to Php 6.5 billion from Php 9.0 billion the previous year, as the impact of lower market prices rippled through increased energy sales volume and coal shipments.
“While we faced some pricing challenges this quarter, our robust export sales and improved plant performance demonstrate the resilience and adaptability of our operations,” said SMPC president and COO Maria Cristina C. Gotianun.
Due to lower costs of fuel and higher supply, average spot prices in the Luzon-Visayas power market decreased by 27%, from Php 6.28 to Php 4.61.
Additionally, the average selling price (ASP) for Semirara coal saw a decrease of 33%, from Php 4,427 per metric ton (MT) to Php 2,978/MT.
The lack of consumption from advanced economies was the cause of the global coal drop,
caused by alterations in energy regulations, an increasing shift toward renewable energy sources, and a slowdown in economic activity.
Within the same period, the firm’s electricity ASP also plummeted by 28% to Php 4.47 per kilowatt hour (kWh) from Php 6.17 kWh, mainly due to a dive in the Wholesale Electricity Spot Prices by 35% to Php 4.35 kWh from Php 6.69 kWh while BCQ decreased by 5% from Php 4.90 kWh to Php 4.66 kWh.
However, coal sales increased by 37% to 4.8 million metric tons (MMT) from 3.5 MMT, mostly due to exports, which increased from 1.5 MMT to 2.7 MMT at a 78% rate.
Domestic shipments also increased by 6% to 2.1 MMT from 2.0 MMT, affected by a boost in internal sales due to the highest overall plant availability recorded in the firm’s history, which reached around 92%.
And with the increase in plant availability, gross generation also surged by 7%, from 1,316 gigawatt hours (GWh) to 1,408 GWh.
As a result, the volume of electricity sold jumped from 1,241 GWh to 1,281 GWh, a 3% increase. The main cause of this growth was an increase in bilateral contract quantity (BCQ) sales, which countered the period’s drop in spot market dispatch.
Spot sales fell by 11%, from 880 GWh to 782 GWh, however, BCQ sales increased by 38% from 361 GWh to 499 GWh.
