Semirara Mining and Power Corp. (SMPC) posted a 17-percent increase in second-quarter net income to P4.8 billion as stronger earnings from its power business offset weaker coal operations.
The integrated energy company said first-half consolidated net income rose 2 percent to P8.6 billion from P8.4 billion a year earlier, with gains from power compensating for the decline in coal earnings.
The power segment accounted for P4.6 billion, or 96 percent, of second-quarter earnings, supported by improved plant availability, record electricity generation and higher selling prices.
Power sales increased 9 percent to a record 1,563 gigawatt-hours (GWh) from 1,435 GWh a year earlier as plant performance improved across the company's generating facilities. Of total electricity sold during the quarter, 53 percent went to the spot market while the remaining 47 percent was supplied through bilateral contracts.
SMPC said the average selling price of electricity rose 29 percent to P5.81 per kilowatt-hour from P4.51 per kWh, reflecting higher spot market prices. As of June 30, 52 percent of the company's 860-megawatt dependable generating capacity was under contract, leaving 339.8 MW available for spot market sales after accounting for station service requirements.
The coal segment contributed P191 million, or 4 percent, of second-quarter earnings, as lower production and shipments, coupled with higher fuel costs, outweighed the recovery in coal selling prices.
Coal production fell 55 percent to 2.5 million metric tons (MMT) from 5.6 MMT, while shipments declined 13 percent to 4.0 MMT from 4.6 MMT. The company attributed the lower output to stripping activities at the new Narra block and limited production from the Acacia mine.
Despite the production decline, the average selling price of Semirara coal increased 27 percent to P2,833 per metric ton from P2,223 per metric ton, supported by stronger global coal benchmark prices.
