Semirara’s profit declines as coal prices, mining output fall

MANILA  -Lower coal prices and weaker production caused a 26-percent drop in the first-half earnings of tycoon Isidro Consunji-led Semirara Mining and Power Corp. (Semirara) despite an improvement in its international shipments.

In a stock exchange disclosure on Monday, Semirara, the Consunji family’s integrated coal mining and energy company, reported that its net income from January to June had plunged to P19.2 billion from P25.8 billion in the same period last year.

Semirara’s average selling price of coal dropped by 23 percent to P4,151 per metric ton (MT) in the second quarter alone.

Heavy rainfall and ongoing stripping activities at the Molave-Narra coal mines in Antique province also triggered a 12-percent decline in total production to 3 million MT (MMT).

International shipments, meanwhile, increased by 22 percent from 3.7 MMT to 4.5 MMT on the back of higher deliveries to South Korea and China, its largest international market.

The company’s domestic sales remained flat at 1.9 MMT due to a 33-percent drop in demand from cement factories and a 50-percent demand decline from other industrial plants.

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

Semirara made its first trial shipment to Japan in January, selling 78,410 MT of mid-grade coal to J-Power, a utility company that operates coal, hydroelectric, wind and geothermal power stations.

In terms of its power business, overall plant availability in the second quarter grew to 80 percent from 64 percent on the back of improvements at SEM-Calaca Power Corp. (SCPC), Semirara’s subsidiary that operates and maintains facilities for electricity generation.

SCPC’s Unit 2 began commercial operations in October 2022 and boosted Semirara’s total average capacity by 35 percent from 509 megawatts (MW) to 685 MW.

Total gross generation rose by 27 percent to 1,212 gigawatt-hours (GWh), pulling up power sales by 22 percent to 1,097 GWh.

The majority, or 66 percent, of Semirara’s total power sales went to the spot market, which saw improved sales at 720 GWh from 507 GWh due to higher demand.

“The second half will be challenging because of the rainy season and planned shutdown of our three power plants, but with our high starting inventory and strategic pivot to the spot market, we believe we can weather these headwinds,” said Semirara president and chief operating officer Maria Cristina Gotianun. INQ