Semirara posts 18% growth in 2017 consolidated profit
Semirara Mining and Power Corp. (SMPC) on Friday said its consolidated net income had jumped 18 percent to P14.14 billion in 2017 from P12.04 billion in 2016, thanks to higher prices and bigger volumes of coal sold last year.
SMPC said in a regulatory filing that last year’s performance helped push up consolidated earnings per share by 17 percent to P3.32 from P2.83 previously.
“Better coal profitability in 2017 is driven by increased average selling price (ASP) and slight increase in volume sold,” the company said.
“Production and coal sales set new record highs at 13.2 million tons and 13.1 million tons, respectively,” it added. “Coal ASP rose by 20 percent [to] P2,268 per ton from P1,886 per ton in 2016.”
In terms of business units, coal production contributed a net of P6.08 billion, or 43 percent of net income after tax. Sem-Calaca Power Corp. chipped in 32 percent, or P4.55 billion, and Southwest Luzon Power Generation Corp. had 26 percent, or P3.74 billion.
“There were two significant nonrecurring transactions in 2017 that had impact on profitability,” the parent firm said.
SMPC was referring to the partial recognition of income worth P330 million from disputed receivables from Power Sector Assets and Liabilities Management Corp.
The other was the P840 million in accelerated depreciation relative to the life extension project of SMPC’s Unit 1 and Unit 2, which will start in the later part of this year.
Also, SMPC saw the improved capacity of its power plants drive a 21-percent surge in generation, which reached 3,515 gigawatt-hours this year from 2,905 gwh last year.
In 2017, the Semirara group’s energy sales totaled 3,560 gwh, or 7 percent higher than the 3,322 gwh in 2016.
“With higher Newcastle price benchmark, ASP improved by 14 percent to P3.75 kilowatt-hour from P3.31 per kwh last year,” SMPC said.
“Meanwhile, cost of energy sold slightly increased by 2 percent to P2.27 per kwh from P2.24 per kwh in 2016,” it added.
