Semirara Mining logs 552% income surge

Just days after hinting at “uneven” quarterly earnings for the year, integrated energy company Semirara Mining and Power Corp. reported that its bottom line for the first three months of 2022 skyrocketed more than fivefold.

The Consunji-led listed firm told the local bourse that first quarter net income soared by 552 percent to P15 billion from P2.3 billion last year.

It already accounted for 93 percent of the P16.2 billion net income that Semirara Mining reported in 2021.

Record-high coal production and shipment amid soaring global coal prices, coupled with more spot electricity sales at elevated prices, were the main drivers of this colossal financial performance.

“We had a record-setting first quarter because of strong operating results and stronger-than-expected market conditions,” said Maria Cristina Gotianun, president and COO of Semirara Mining.

“However, we do not see this turning into a trend because of market volatility and unfavorable weather conditions, particularly in the second half of 2022,” she added.

Production surged by 49 percent to 6.7 million metric tons (MMT) from 4.5 MMT, which Semirara Mining said was “the highest for any given quarter,” as controlled water seepage levels at the Molave mine and favorable weather conditions allowed them to bolster output.

With that, total shipments expanded by 31 percent to 5.1 MMT from 3.9 MMT.

Average coal selling price surged by 180 percent to P5,125 from P1,829, attributing it to soaring index prices and sale of more high-grade coal.

“Newcastle coal prices nearly tripled (197 percent) in the first quarter owing to strengthening global demand, heavy rainfall in Australia and bans on Russian coal. Meanwhile, ICI4 rose by 99 percent due to the coal export ban imposed by Indonesia,” it added.

The contribution of Semirara Mining’s coal segment grew by 678 percent to P13 billion from P1.7 billion.

The power business further boosted its profitability, cashing in on “surging electricity prices on the back of higher gross generation and sales, large uncontracted capacity and rebounding demand.”

Overall gross generation climbed by 5 percent to 907 gigawatt hours (GWh) from 862 GWh while total power sales jumped by 14 percent to 908 GWh from 796 GWh, of which, 57 percent was sold on the spot market.

During the period, average electricity demand increased by 5 percent to 9,764 MW from 9,300 MW on looser quarantine restrictions amid stable supply. INQ