Semirara Mining and Power Corp. (SMPC) reported a 66% increase in third-quarter net income to P2.4 billion from P1.5 billion a year earlier, as stronger power earnings and lower noncash charges offset weaker coal operations.
In a disclosure to the Securities and Exchange Commission, the integrated energy company said consolidated net income for the first nine months of 2026 rose 11% to P11 billion from P9.9 billion in the same period last year.
The power segment accounted for 78% of the company's nine-month earnings.
Power operations contributed P2.6 billion to consolidated third-quarter earnings, compared with P1.3 billion a year earlier, more than offsetting the coal segment's losses.
Total electricity sales increased 5% to 1,388 gigawatt-hours (GWh) from 1,327 GWh, supported by improved plant performance.
Bilateral contracts accounted for 54% of electricity sales, while the remaining 46% was sold through the spot market.
SMPC's average electricity selling price climbed 26% to P5.27 per kilowatt-hour from P4.17 per kWh, reflecting higher spot market prices.
Average Luzon-Visayas spot market prices surged 85% to P6.50 per kWh from P3.51 per kWh, as electricity demand growth outpaced available supply, amid elevated fuel costs and transmission line congestion in the Visayas grid.
As of Sept. 30, contracted capacity represented 45% of SMPC's 860-megawatt dependable capacity. After accounting for station service requirements, 400 MW remained available for spot market sales.
Coal operations weaken
SMPC's coal segment recorded a net loss of P110 million in the third quarter, reflecting lower shipments and higher production costs, including fuel expenses.
Coal production declined 5% to 3.6 million metric tons from 3.8 million metric tons, amid limited output from the Acacia mine and the near-depletion of the Narra mine.
Shipments fell 25% to 2.7 million metric tons from 3.6 million metric tons. Domestic power generators, cement manufacturers and industrial plants accounted for 85% of total coal sales.
Despite the decline in shipments, the Indonesian Coal Index 4 (ICI4) rose 62% to $68.10 per metric ton from $42.10 per metric ton, supported by supply constraints in Indonesia and elevated liquefied natural gas prices linked to geopolitical tensions in the Middle East.
SMPC's average coal selling price increased 22% to P2,749 per metric ton from P2,249 per metric ton, a slower pace than the benchmark's increase, as the company sold a larger share of noncommercial-grade coal.
SMPC is the country's largest coal producer and operates through its wholly owned subsidiaries Sem-Calaca Power Corp. and Southwest Luzon Power Generation Corp., which supply baseload electricity to the national grid through bilateral contracts and the Wholesale Electricity Spot Market.
