SMPC earnings down on stabilizing market prices

Semirara Mining and Power Corp. (SMPC) on Thursday reported an 8% decline in its third quarter earnings, dragged by the lower contribution from its coal segment amid stabilizing market indices during the period.

SMPC said its third quarter earnings dropped to P3.1 billion from P3.4 billion amid the decline in prices — the Newcastle Index down 5% to $140.3 from $147.8, and the Indonesian Coal Index down 1% to $51.7 from $52.0.

The average selling price (ASP) of electricity fell slightly to P4.80 per kilowatt-hour (kWh) from P4.81/kWh, reflecting the improved ASP from bilateral contracts and weaker spot market prices.

“As anticipated, stabilizing market prices exerted pressure on our margins,” SMPC president and chief operating officer Maria Cristina Gotianun said in a regulatory filing.

“Our third quarter results also reflect the seasonal impact of the rainy season on coal shipments and electricity prices, both of which we were able to partially offset through focused cost management and operational efficiency initiatives,” she added.

This brought the year-to-date net income to P15.71 billion, down 31% from P22.62 billion in the same period in 2023, also on softer selling prices and higher total cash and non-cash costs due to the increased coal and power sales volume.

“For the remainder of the year, we expect coal and electricity prices to remain stable. Our focus is on meeting our coal production target of 16 million metric tons and achieving a balance in our contracted generation capacity mix,” Gotianun said.

SMPC’s subsidiaries include SEM-Calaca Power Corp., Southwest Luzon Power Generation Corp., SEM-Cal Industrial Park Developers Inc., Semirara Materials and Resources Inc., Semirara Energy Utilities Inc., Southeast Luzon Power Generation Corp., and St. Raphael Power Generation Corp. —VBL, GMA Integrated News