Semirara Mining and Power Corp income hits record high P12B

February 24, 2017

Integrated energy company Semirara Mining and Power Corp. hit all-time- high net income of P12 billion in 2016, a 42 percent improvement from P8.47 billion the previous year. Higher coal and power sales accounted for the record performance, a disclosure to the Philippine Stock Exchange said Friday.

More than half of the consolidated income or P6.6 billion came from the power segment, with Sem-Calaca Power Corp. (SCPC) and Southwest Luzon Power Generation Corp. (SLPGC) contributing P2.9 billion and P3.7 billion, respectively.

Commencement of  commercial operations of SLPGC beginning second quarter of 2016 offset the decreased availability and downtimes of the SCPC plants, resulting in total generation of 4,292 GWh, a 3 percent uptick from 4,170 GWh the previous year.

Despite weak global prices in the first half of the year, the coal segment delivered P5.4 billion in net earnings after eliminating entries, an 86 percent increase year-on- year. The growth was driven by record coal sales of 12.8 million metric tons, up 52 percent from 8.4 million metric tons in 2015.

Composite average price of coal fell nine percent from P1,943 per ton to P1,885 per ton year-on- year. During the same period, low-grade coal supplied to SLPGC more than doubled, effectively pulling down the average price of coal.

“We delivered a solid 2016 performance despite market headwinds and operational challenges. Much of the credit goes to our people, host community, investors and government partners,” said SMPC president and chief operating officer Victor Consunji.

In a separate development, the SMPC board approved the declaration of stock dividends amounting to P3.2 billion divided into 3.2 billion shares at the par value of P1 per share or three common shares for every one common share held from the unrestricted retained earnings of the Corporation as of December 31, 2016. DMS