Semirara's Q1 haul shrinks amid coal market turmoil
MANILA, Philippines — Semirara Mining and Power Corp. (SMPC) saw its earnings shrink in the first quarter as revenues from its coal business contracted because of a skittish market.
In a disclosure sent to the Philippine Stock Exchange on Wednesday, the Consunji-led energy company reported its consolidated net income contracted 40% year-on-year to P9 billion from January to March.
Coal revenues plunged 40% on-year to P15.5 billion in the first quarter, owing to lower shipments and selling prices as SMPC weathered market volatility.
"We limited our first-quarter exports because of the wild price swings. Now that prices have settled, we intend to boost our foreign shipments in the coming months," said SMPC president and COO Maria Cristina Gotianun.
Likewise, SMPC noted that its bottom line retreated owing to high-base effects, since the company reported its highest quarterly net income in the same period in 2022.
The company is eyeing to sell between 15-16 million metric tons of coal this year.
Disclosure broken down showed total coal shipments in the first quarter sank 31% on-year to P3.5 million metric tons, dragged by a 52% contraction in export and domestic sales turning flat.
There were bright spots in the report, as its power business reported gains. Revenues from this segment surged 59% on-year to P7.7 billion in the first quarter.
Total power sales improved 37% on-year to 1,241 Gigawatt hours, as 71% was sold in the spot market.
Despite this, spot average selling prices of power inched down 2% to P6.69 per kilowatt-hour as fuel prices retreated and demand slowed in January. — Ramon Royandoyan
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