SMPC earnings seen unaffected by plant shutdown

Two power generation units of Semirara Mining and Power Corp. in Calaca, Batangas, have gone off-line to allow for unplanned maintenance and repairs but the Consunji-led company does not expect the unexpected disruption to significantly gnaw on earnings.

Semirara disclosed to the Philippine Stock Exchange on Friday that units 1 and 3 of its 900-megawatt coal-fired Calaca Power Plant complex had been put down for unplanned outage. Unit 3, which is run by Southwest Luzon Power Generation Corp. (SLPGC), was put down on March 6 due to observed abnormal vibration of the equipment. Unit 1, which is run by Sem-Calaca Power Corp. (SCPC), is undergoing unplanned outage until March 12 to give way to boiler slag removal.

This suggests that all four power units at Calaca have gone off-line, as two other units have been down for scheduled maintenance.

“The impact is not so big because there’s still allowable outage,” Semirara chief finance officer Junalina Tabor explained in an interview. “We don’t need to replace power because we’re still within allowable outage based on targets.”

Otherwise, Semirara would be compelled to purchase replacement power from other producers, which is seen to reduce its margins.

The other unit of SLPGC, which operates the 2×150 MW coal-fired thermal power plant, is currently undergoing regular planned maintenance outage and is targeted to be back on-line by the last week of March.

Furthermore, another unit of SCPC which operates the 2x300MW plant is undergoing a planned outage, to include the thorough assessment/inspection of the unit prior to the final phase of rehabilitation (life extension program) in 2019. It is expected to be back online by the end of the month.

In the case of Unit 1, Tabor said there was a need to wash the boilers to address slagging.

Slag refers to molten ash and other incombustible byproducts that remain following coal combustion.

For unit 3 which was put down due to abnormal vibration, Tabor said this was already being cooled down as SLPGC awaits their consultant.