Semirara Q1 earnings down 28% on lower coal prices

MANILA, Philippines — Lower coal prices weighed down on the earnings of the Consunji family’s Semirara Mining and Power Corp. in the three months ending March.

Semirara Mining, in a disclosure on Monday, reported a net income of P6.54 billion in the first quarter of 2024, down by 28 percent from P9.03 billion in the same period a year ago.

Overall revenues decreased by 11 percent to P18.43 billion, but the integrated energy firm’s cost of sales climbed by almost 35 percent to P8.6 billion.

“While we faced some pricing challenges this quarter, our robust export sales and improved plant performance demonstrate the resilience and adaptability of our operations,” Semirara president and COO Maria Cristina Gotianun said.

READ: Semirara coal exports hit record volume in 2023

During the quarter, The Newcastle index, the benchmark price for seaborne thermal coal in the Asia-Pacific region, plummeted by 48 percent to $126 while the Indonesian Coal Index 4 dropped by 25 percent.

At the same time, average prices in the power spot market tumbled by 27 percent to P4.61 on lower fuel costs and increased supply.

“Global coal indices declined due to weak demand from developed countries, driven by changes in energy policies, a shift toward renewable sources, and slowing economic activities,” Semirara said.

Amid lower coal and power prices, the company reported a 37-percent increment in coal sales to 4.8 million metric tons. This was largely due to the 78 percent increase in exports to 2.7 million MT.

Domestic shipments alone rose by 6 percent to 2.1 million MT.

Gotianun said they expect annual coal shipments of 16 million MT to be sustainable until 2026, assuming that demand remains stable.