Semirara 9-month income down 37%

MANILA  -Lower coal shipments and selling prices caused a 37-percent dip in the earnings of Isidro Consunji’s Semirara Mining and Power Corp. during the first nine months of the year despite improvements from its power business.

Semirara, the Consunji family’s integrated energy company, disclosed to the Philippine Stock Exchange on Tuesday that its net income from January to September stood at P22.6 billion, down from P35.9 billion the previous year.

“The third quarter is always a slow period for us in terms of production and demand because of the rainy season,” said Semirara president and chief operating officer Maria Cristina Gotianun.

The average selling price of Semirara coal dropped by 23 percent to P4,042 per metric ton (MT) on the back of stabilizing index prices.

Average Newcastle price, the benchmark price for seaborne thermal coal in the Asia-Pacific region, likewise slumped by 48 percent to $186.

Despite vowing to maintain high production this year, Semirara’s nine-month coal production suffered a 14-percent drop from the record-high 13.7 million MT (MMT) to 11.8 MMT due to higher stripping activities in the Molave and Narra mines.

Stripping activities refer to the removal of mine waste materials to gain access to mineral ore deposits.

Coal shipments also dipped by 12 percent to 10.5 MMT.

Earlier this year, Semirara said it wanted to be a key exporter of coal to Japan to diversify its overseas business and unlock better pricing.

Semirara’s power business, meanwhile, recorded its “best-ever” overall plant performance over a nine-month period due to better plant availability.

According to the company, plant availability improved to 81 percent from 61 percent during the same period in 2022.

Gross generation also grew by nearly 30 percent to 3,695 gigawatt-hours (GWh), while sales volume rose by a quarter to 3,437 GWh.

“Our power business really stepped up this year. Their all-time high results offset the sharp earnings drop in our coal business,” Gotianun said.

In the third quarter of the year alone, Semirara saw its earnings plunge by 66 percent to P3.4 billion.