earnings reports

Semirara profits surge 181% to P6.3 billion in H1 2021

Aika Rey
Semirara profits surge 181% to P6.3 billion in H1 2021

IMPROVED PROFITS. A Semirara Mining and Power Corporation worker operates a machine.

SMPC's Facebook page

Semirara Mining and Power Corporation sees an improved bottom line due to record-high coal sales and soaring prices during the second quarter

Semirara Mining and Power Corporation (SMPC), a coal mining and power generating firm owned by the Consunji group, saw its consolidated net income surge by 181% to P6.3 billion from January to June 2021, mainly due to record-high coal sales and prices.

SMPC reported on Tuesday, August 3, that its profits grew almost fourfold to P4 billion from April to June alone. The second quarter figures provided the much-needed upturn for SMPC, as income plunged 66% year-on-year during the first quarter.

From April to June, SMPC said its coal segment contributed P3.04 billion in revenues.

Coal sales for the second quarter grew almost double year-on-year from 2.5 million metric tons to 4.9 MMT. SMPC said that was the highest quarterly sales volume ever recorded by the company.

The average selling price of Semirara coal also jumped by 49% from P1,601 to P2,393. Newcastle coal prices peaked at $136 in June.

Total electricity sales, meanwhile, grew 11% from 892 gigawatts per hour to 987 GWh due to improved generation from subsidiary Southwest Luzon Power Generation Corporation (SLPGC).

SLPGC recovered from a net loss of P57 million to a net income of P359 million.

Generation company Sem-Calaca Power Corporation (SCPC), meanwhile, recorded a 3% dip in earnings contribution to P581 million.

SCPC’s 300-megawatt coal-fired plant Unit 2 was offline for the first half of 2021.

“We had a very good second quarter because of favorable market conditions. Sustaining our performance will be a challenge given the onset of the rainy season and our plant outages, but we are determined to optimize our performance,” said SMPC president and chief operating officer Maria Cristina Gotianun.

On Tuesday, Semirara shares closed at P17.48 apiece, up by 6.98%. – Rappler.com

Aika Rey

Aika Rey is a business reporter for Rappler. She covered the Senate of the Philippines before fully diving into numbers and companies. Got tips? Find her on Twitter at @reyaika or shoot her an email at aika.rey@rappler.com.