Semirara Mining’s profit up 146% to 39.9 billion pesos

SEMIRARA Mining and Power Corp. (SMPC) ended 2022 with a consolidated net income of 39.9 billion pesos, more than double the previous year’s record of 16.2 billion pesos.

The firm attributed the new record earnings to robust domestic coal shipments and higher electricity sales in the spot market, as well as higher market prices.

Domestic coal sales are reported to have jumped 33 percent from 5.8 million metric tons (Mt) in 2021 to an all-time high of 7.7 Mt.

However, exports fell 24 percent from 9.4 million tons in 2021 to 7.1 million tons last year.

“Last year, we focused on the Philippine, South Korean and other ASEAN (Association of Southeast Asian Nations) markets to reduce our dependence on China, which imported Russian coal at a significant discount,” said Semirara Mining President and COO Maria Cristina. Gochanun. said.

“Diversifying our market focus has allowed us to get the best price for our inventory,” she added.

The average selling price (ASP) of Semirara Mining coal jumped 91 percent from 2,695 pesos to a record 5,136 pesos due to a sharp increase in index prices and sales of higher quality coal.

In terms of electricity, total spot electricity sales by subsidiaries of SEM-Calaca Power Corp. and Southwest Luzon Power Generation Corp. increased by 83 percent from 1,028 gigawatt hours (GWh) to 1,881 GWh.

In addition, ASP’s spot electricity increased by 35 percent from 5.51 pesos per kilowatt hour (kWh) to 7.46 pesos per kilowatt hour due to low supply and demand margins and higher fuel costs.

In the fourth quarter alone, Semirara Mining recorded a 34 percent drop in consolidated net income from 5.9 billion pesos to 3.9 billion pesos, mainly due to higher stripping costs, a lower average exchange rate, as well as income tax and related costs. 1 billion pesos in connection with the postponement of tax holidays at the Molave ​​mine for 2020.