Integrated energy company Semirara Mining and Power Corporation (SMPC) reported its highest quarterly net income ever at P15 billion, a 552-percent upsurge from the P2.3 billion posted last year. Its first-quarter bottom line already accounts for 93 percent of its 2021 bottom line of P16.2 billion.
“We had a record-setting first quarter because of strong operating results and stronger-than-expected market conditions,” explained SMPC president and COO Maria Cristina C. Gotianun.
“However, we do not see this turning into a trend because of market volatility and unfavorable weather conditions, particularly in the second half of 2022,” she added.
The unexpectedly strong performance of SMPC was mainly due to record-high coal production and shipment amid soaring global coal prices, coupled with higher spot electricity sales at elevated prices.
Contributions from the coal segment grew by 678 percent from P1.7 billion to P13 billion while SEM-Calaca Power Corporation contributed P1.7 billion, up 33,980 percent from P5 million. Southwest Luzon Power Generation Corporation contributed P307 million, a 50-percent reduction from P620 million.
Controlled water seepage levels in the Molave mine and favorable weather conditions allowed SMPC to boost production by 49 percent from 4.5 million metric tons (MMT) to 6.7 MMT, the highest for any given quarter.
With record production, total shipments grew by 31 percent from 3.9 MMT to 5.1 MMT, another historic performance from the company.
Average coal selling price also swung upward, growing 180% from P1,829 to P5,125 on soaring index prices and the sale of more high-grade coal. Newcastle coal prices nearly tripled (197%) in the first quarter owing to strengthening global demand, heavy rainfall in Australia, and bans on Russian coal. Meanwhile, ICI4 rose by 99 percent due to the coal export ban imposed by Indonesia.
Providing an added boost to group profitability was the power segment which benefited from surging electricity prices on the back of higher gross generation and sales, large uncontracted capacity, and rebounding demand.
Overall gross generation climbed by 5 percent from 862 GWh to 907 GWh while total power sales jumped by 14 percent from 796 GWh to 908 GWh, the bulk (57%) of which was sold to the spot market.
During the period, average electricity demand rose by 5 percent from 9,300MW to 9,764MW on loosening quarantine restrictions amid stable supply. With higher spot sales, the consolidated average selling price of the power segment improved by 50 percent from P3.52/KWh to P5.29/KWh.
