Semirara Mining and Power Corp., led by Consunji (SMPC) reported a new earnings record as its nine-month consolidated net income rose 250 percent from P10.3 billion to P36 billion.
The increase was primarily due to the combined effect of increased market prices, all-time high coal production and higher spot power sales volume.
“Historically, the third quarter is our slowest due to the rainy season and sluggish demand. But due to improved market prices, we performed much better than expected,” said SMPC President and COO Maria Cristina C. Gotianun.
In the third quarter alone, SMPC made 10.2 billion pesos, up 153 percent from 4 billion pesos in the same period last year.
From January to September, average sales prices of Semirara coal increased by 122 percent to 5,224 Pest per tonne (MT), from 2,351 Pt/MT to 5,224 Pt/MT due to the increase in global index prices after the Russian invasion of Ukraine.
Average Newcastle prices rose 191 percent from $121.70 to $353.80, while Indonesia’s average coal index 4 rose 50 percent from $56.10 to $84.30.
Nine-month coal production increased 27 percent from 10.8 million tonnes (MMT) to a record 13.7 MMT, due to controlled water seepage at the Molave mine and better coal access in East Block 4 and South Block 5 is.
Meanwhile, the power business saw spot market sales rise 216 percent from 489 gigawatt-hours (GWh) to 1,546 GWh, driven by a 5 percent increase in plant availability, a 7 percent improvement in gross generation and a move away from bilateral contracts.
Its average spot selling price rose 38 percent from P5.30 to P7.33 on recovering demand, higher fuel costs and tight utility margins.
In February, the company announced that it had posted its highest-ever net profit for the past year.
It ended 2021 with net income of P16.2 billion, a jump of 393 percent from the previous year’s P3.3 billion, mainly due to an 8 percent increase in coal production, a 16 percent increase in coal shipments and a 71 percent jump -percent increase Increase in the average selling price of coal.
Contributions from the coal segment rose 535 percent to P11.4 billion from P1.8 billion, while both power subsidiaries delivered improved performances.
Sem-Calaca Power Corp. contributed P3.3 billion, up 154 percent from P1.3 billion last year. Meanwhile, Southwest Luzon Power Generation Co. recorded a 1,563 percent increase in contributions from P87 million to P1.4 billion.