Semirara earnings surge 59%

MANILA, Philippines - Consunji-led Semirara Mining and Power Corp. booked 59 percent higher earnings in nine months mainly due to its power generation business, which more than offset the slowdown in its mining operations.

In a disclosure to the Philippine Stock Exchange, Semirara said its net income reached P6.21 billion as of end-September 2015 from P3.91 billion in the comparable period in 2014.

The company said its coal business turned in a net income of P1.14 billion, while the power segment generated P5.07 billion. Lower production, decline in pricing and sales volume dragged the performance of Semirara’s coal business.

For the period, there was a six percent drop in average selling price per ton to P2,089 from P2,219 last year while sales volume also slightly decreased to 6.13 million tons from 6.19 million tons.

Coal production also dropped 21 percent to 5.57 million tons from last year’s 7.01 million tons.

The two-month closure of its Panian open-pit mine in Semirara Island in Antique, following the fatal landslide on July 17, contributed to the lower coal output for the period.

“Although operations were halted for 64 days, mining schedule is behind by only 20 days as at the end of the current period,” Semirara said.

The Department of Energy suspended Semirara’s mining operations immediately after the landslide which took the lives of nine miners. It ordered the re-opening of the mine on Sept. 17 after Semirara substantially complied with the agency’s conditions for the lifting of the suspension.

Boosting Semirara’s financial position was the improved performance of its power generation business under Southwest Luzon Power Generation Corp. (SLPGC) and Sem-Calaca Power Corp. (SCPC). 

Semirara said “pre-operating SLPGC recorded P71 million income before eliminations from sales and during the testing and commissioning of its 2x150 megawatt (MW) plants in Batangas.”

“On the other hand, SCPC’s net income before eliminations surged by almost 34 times from P92 million in the same period last year despite being on tax position already,” it added.

Semirara did not disclose the net earnings contribution of the two power units after eliminations.

SCPC has an existing 600-MW coal-fired power plant in Calaca, Batangas, which will be expanded by another 600 MW through SLGPC.

Semirara noted SCPC generated strong income with “both units [of the Calaca plant] running steadily this year, unlike last year when it incurred losses in Q2 when the company was exposed to high replacement power costs when Unit 2’s scheduled shutdown was extended.”

Total generation increased 81 percent to 3,163 gigawatts per hour (gwh) from 1,748 gwh last year, while volume sold rose by 32 percent to 3,035 gwh from 2,292 gwh.

However, average selling price per kwh dropped nine percent to P3.41 from P3.75 last year.

Meanwhile, SLGPC is building the 2x150-MW first phase expansion of the Calaca coal-fired power plant which is targeted for commercial operations this year.