Semirara projecting 17% income growth

Semirara Mining Corp. expects its profit to reach P7 billion in 2012, up by 17 percent from the P6 billion posted last year, as it sees better performance from its power generation business.

In a briefing following the company stockholders’ meeting on Monday, Semirara Mining chief executive Isidro A. Consunji said the firm’s revenue goal this year of P28 billion to P29 billion would be driven by its coal and power generation businesses.

The expected increase in its profit level may be attributed to increased electricity sales as a result of more efficient power facilities.

Semirara is nearing completion of the rehabilitation of the first of the two 300-megawatt units of its coal-fired power plant in Calaca, Batangas.

This first unit is expected to start generating at least 220 MW by next month using coal from Semirara Island. The electricity to be generated will be purchased by power distributor Manila Electric Co. via a power supply agreement that was earlier signed by the two parties.

Prior to the rehabilitation, the two coal facilities were generating only about 300 MW, or about half of the installed capacity of 600MW.

Consunji said Semirara Mining was pushing through with its 300-MW expansion project, construction of which may start by the second half of this year.

Semirara, he added, had already secured the necessary financing for the $450-million coal power project.