Integrated energy company Semirara Mining and Power Corp. (SMPC) posted earnings of P19.6 billion in 2024, a 30-percent decline from P27.9 billion in 2023, as energy markets continued to normalize.
The company said the weaker selling prices was offset by record-high coal shipments and power generation, increased electricity sales and lower government share.
“Despite price corrections, we focused on key factors within our control—maximizing production, achieving record-high coal shipments and power generation. Our disciplined strategy and dedicated team played a crucial role in navigating energy market shifts,” said SMPC president, chief operating officer and chief sustainability officer Maria Cristina Gotianun.
SMPC recorded total shipments of 16.5 million metric tons (MMT), exceeding 16 MMT for the third consecutive year while gross power generation totaled 5,358 gigawatt-hours (GWh).
Total revenues contracted by 15 percent to P65.19 billion from P76.96 billion, on lower selling prices for both coal and electricity, while increased sales volume provided some relief.
“Looking ahead to 2025, the divergence between NEWC and ICI4 trends is expected to persist. China’s domestic producers are intensifying competition with lower-priced output, while European markets prepare for winter 2025. Overall, the coal market remains sensitive to a slowdown in Chinese demand, which is crucial to global supply-demand balance,” the company said.
It said trade tensions, economic headwinds in China and weaker Indian demand could further pressure prices.
“Management remains focused on strengthening its customer base, enhancing operational efficiency, and ensuring sustainable operations amid persistent market risks and a cautious outlook,” SMPC said.
The company said it is actively expanding its reach beyond China and South Korea, establishing access to India, Thailand, Japan and Vietnam to reduce reliance on a single major market.
SMPC is also banking on a consistent customer base from the industrial and cement customers in the domestic market.
“Operationally, the company is prioritizing efficiency improvements and advancing exploration at the Acacia mine to sustain annual production and enhance coal quality. Additionally, the planned transition to wind energy in mining operations is expected to lower production costs, reinforcing the company’s cost management initiatives and margin protection strategies,” it said.
SMPC generated P3.9 billion in net income in the fourth quarter of 2024, down 26 percent from P5.3 billion in the same period in 2023, on weaker contribution from the coal segment, while the power segment remained relatively stable.