Semirara Mining and Power Corp. (SMPC) reported a 33 percent drop in net income to P4.1 billion in the second quarter of 2025, down from P6.1 billion in the same period last year, mainly attributed to lower coal and electricity prices.
First-half net income also fell 33 percent to P8.4 billion, compared with P12.6 billion in 2024.
“While energy prices eased, we ramped up coal production and boosted power generation,” said Maria Cristina Gotianun, SMPC president, chief operating officer and chief sustainability officer.
“By keeping our costs under control and operating more efficiently, we were able to cushion the impact of weaker prices.”
Average coal prices declined as global indices softened. During the second quarter, the Newcastle Index dropped 26 percent year-on-year to $100.50, while the Indonesian Coal Index 4 fell 16 percent to $46.40.
Average spot electricity prices in the Luzon-Visayas grid fell 42 percent, from P6.91 per kilowatt-hour to P4.04 per kilowatt-hour.
Despite the price decline, SMPC increased coal production 8 percent to 5.6 million metric tons in the second quarter, while shipments held steady at 4.6 million metric tons.
The average selling price for Semirara coal declined 20 percent to P2,223 per metric ton, due to a greater share of lower-grade coal and lower global prices.
On the power side, total sales rose 17 percent to 1,435 gigawatt-hours, driven by higher plant availability. Electricity prices, however, dropped 19 percent to P4.51 per kilowatt-hour, reflecting increased supply in the market.
As of the end of June, 38 percent of SMPC’s 840-megawatt total dependable capacity was contracted. After accounting for periodic station service, 435.60 megawatts were available for spot market sales.
Looking ahead, Gotianun said the company expects prices to remain stable.
“Our focus is on ramping up coal production toward our 18 million metric ton target and optimizing our generation mix to maximize contracted capacity,” she said.
SMPC is the largest and most modern coal producer in the Philippines. It is a vertically integrated power generation company that runs on its own fuel.
