Falling coal prices slash Semirara profit by 30%

MANILA, Philippines  Record-high coal shipments failed to lift the earnings of Consunji-led Semirara Mining and Power Corp. in 2023, as low selling prices triggered a 30-percent decline in profits.

In a stock exchange filing on Wednesday, Semirara said its net income last year fell to P27.9 billion from P39.9 billion in 2022.

The average selling price of Semirara coal went down by 26 percent to P3,796 per metric ton due to an oversupply from Indonesia—which supplies more than 90 percent of the country’s imported coal—as well as “subdued” global economic growth.

READ: Cheaper coal ‘stabilized’ 2023 power costs – ERC

This likewise pulled down the company’s consolidated revenues by 16 percent to P76.96 billion.

“Last year, we expected energy prices to stabilize so we focused on boosting our mine and plant outputs,” said Maria Cristina Gotianun, Semirara president and chief operating officer

Coal sales volume, meanwhile, rose by 7 percent to a high of 15.8 million metric tons (MMT) on the back of an increase in exports.

Exports climbed by 14 percent to 8.1 MMT from 7.1 MMT, while domestic sales volume was flat at 7.7 MMT.

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