Semirara Mining profit more than doubles to P10B

SEMIRARA Mining and Power Corp. (SMPC) recorded a third-quarter net income of P10.15 billion, more than double the P4.01 billion reported a year ago, boosted by high coal production and electricity prices.

“Historically, the third quarter is our slowest because of the rainy season and sluggish demand. But because of improved market prices, we did much better than expected,” SMPC President and Chief Operating Officer Maria Cristina C. Gotianun said in a statement on Wednesday.

For the third quarter, the company’s revenues went up by 51.1% to P21.16 billion from the P14 billion recorded in the same period last year.

Of its revenues, coal accounted for the biggest share at P15.04 billion or 71%, with power contributing P6.12 billion or 28.9%.

For the nine-month period, SMPC said it “set a new profit record” of P35.95 billion, more than three times higher than the P10.29 billion recorded in the same period last year.

Further, its revenues for the three quarters were up by 92.4% to P73.17 billion from P38.03 billion in the corresponding last year.

SMPC said that the rise in net income was due to elevated market prices, all-time high coal production, and higher spot electricity sales volume.

From January to September, the average selling price of its coal rose by 122.2% to P5,224 per metric ton (MT) from P2,351 per MT a year ago, fueled by the surge in the global index prices due to Russia’s war on Ukraine.

The company said average Newcastle prices surged by 191$ to $353.80 from $121.70 while the average Indonesian Coal Index 4 rose by 50% to $84.30 from $56.10.

SMPC’s coal production also went up 26.9% to 13.7 million metric tons (MMT) from 10.8 MMT due to controlled water seepage levels in one of its mines and better coal access in two mining blocks.

Its power business posted a 216% increase in spot market sales to 1,546 gigawatt-hours (GWh) from 489 GWh. It attributed the increase to a 5% rise in plant availability, a 7% improvement in gross power generation, and a “pivot away from bilateral contracts.”

The company said the average spot selling price of electricity rose by 38.3% to P7.33 from P5.30, citing “recovering demand, higher fuel costs and thin power supply margins.”

Last month, SMPC’s board approved the declaration of special cash dividends of P3.50 per outstanding common share for shareholders on record as of Oct. 31. The payment will be made on Nov. 15.

The dividends are double the P1.75 special cash dividends declared last year, and the highest dividend ever declared by the company.

In April, the company paid out P1.50 per share in regular cash dividends, bringing the total payout this year to P5.00 per share, which it said is the highest in its corporate history.

At the stock exchange on Wednesday, shares in the company declined by 3.29% to finish at P33.80 apiece. — A.E.O. Jose