Semirara targets 16 million metric tons coal production this year
By Brix Lelis | The Philippine Star | November 2, 2024 12:00AM
The company also expects coal and electricity prices to “remain stable” for the remaining months of the year. PHILSTAR FILE PHOTO
MANILA, Philippines — Semirara Mining and Power Corp. (SMPC), the leading coal producer in the country, is hoping to end the year on a high note with a production target of 16 million metric tons (MMT).
“Our focus is on meeting our coal production target of 16 (MMT) and achieving a balance in our contracted generation capacity mix,” SMPC president and COO Maria Cristina Gotianun said.
The company also expects coal and electricity prices to “remain stable” for the remaining months of the year.
An integrated power generator, SMPC supplies fuel to power plants, cement factories and other industrial facilities across the country. It also exports coal to China, South Korea, Brunei and other nearby markets.
In the third quarter, coal production grew by seven percent to three MMT from 2.8 MMT due to a low-base effect following the near-depletion of Molave mine and pre-stripping activities in Narra mine last year.
SMPC was able to ship a total of 2.9 MMT of coal during the quarter, up by 16 percent from the same period last year’s 2.5 MMT and propelled by stronger export demand.
Foreign shipments were said to have more than doubled to 1.1 MMT from 0.5 MMT, driven by higher sales to China.
The coal segment accounted for 37 percent of the net income in the third quarter, while operating subsidiaries SEM-Calaca Power Corp. and Southwest Luzon Power Generation Corp. contributed 49 percent and 14 percent, respectively.
From July to September, SMPC reported an eight-percent dip in earnings to P3.1 billion from P3.4 billion on a quarterly basis.
The decline was mainly blamed on lower contributions from the coal segment amid normalizing market prices.
Third quarter revenues, on the other hand, improved by 10 percent to P13.08 billion from P11.63 billion on the back of higher coal and electricity sales, tempered by lower selling prices.
“Our third-quarter results also reflect the seasonal impact of the rainy season on coal shipments and electricity prices, both of which we were able to partially offset through focused cost management and operational efficiency initiatives,” Gotianun said.
In the nine-month period, SMPC’s earnings plunged by 31 percent to P15.71 billion from P22.62 billion previously, due to weaker selling prices and increased costs.
Similarly, revenues declined by 12 percent to P49.67 billion from P56.2 billion as higher sales volume could not offset the impact of lower selling prices of coal and electricity.
In 2023, the company achieved a record coal sales volume of 15.8 MMT, marking a six-percent increase year-on-year.
The growth was largely fueled by strong export sales, which jumped to 8.1 MMT from 7.1 MMT. Domestic sales last year, meanwhile, stayed flat at 7.7 MMT.
The majority of SMPC’s coal exports last year went to China (65 percent), followed by South Korea (27 percent) and Brunei (four percent).
Source: The Philippine Star
.