Semirara Mining and Power Corp. (SMPC) reported on Wednesday a 33-percent drop in 2025 net income to P13.1 billion from P19.6 billion the previous year, as softer global coal benchmarks and lower electricity prices outweighed record-high operations.
Revenues for the integrated energy company decreased 20 percent to P52.23 billion from P65.19 billion. The decline was led by lower average selling prices in both coal and power segments along with reduced coal sales volumes, but the company said these were partially offset by record electricity sales.
“Prices were softer this year, but our operations still delivered record coal production and electricity sales. We’re also working to broaden our markets while keeping our mines and power plants running well,” SMPC president, chief operating officer and chief sustainability officer Maria Cristina Gotianun said.
The company is moving to manage market volatility by improving operational efficiency and contracting about two-thirds of its net selling capacity through bilateral power supply agreements.
It also plans to uprate Sem-Calaca Power Corp. Units 1 and 2 to 250 MW and 310 MW, respectively, citing the cost advantages of coal-fired units for baseload power.
Market conditions saw the average Newcastle Index slide 22 percent year-on-year to $105.6 while the Indonesian Coal Index 4 eased 15 percent to $46.1.
Average spot electricity prices in the Luzon-Visayas grid retreated 27 percent to P3.73 per kWh amid wider supply margins in the Wholesale Electricity Spot Market.
Despite the price crunch, coal production expanded 24 percent to a record 19.9 million metric tons in 2025. This followed improved access to coal seams at the Narra mine and a new environmental clearance for 20 million metric tons of annual capacity. Total shipments, however, eased 7 percent to 15.4 million metric tons due to export timing and softer demand for lower-calorific coal.
The average selling price for Semirara coal fell 19 percent to P2,302 per metric ton. In the power segment, total sales reached a record 5,296 gigawatt-hours, supported by improved plant reliability. Of that total, 54 percent was sold to the spot market while 46 percent was delivered under bilateral contracts.
Looking toward 2026, the company expects capital expenditures to decline to P1.9 billion as it pauses major equipment re-fleeting. About P800 million is earmarked for the coal segment while P1.1 billion will support power plant maintenance and reliability.
SMPC said said that while Middle East tensions have limited direct impact on coal trade, potential disruptions to liquefied natural gas supplies could trigger fuel switching that supports coal demand.
The company expects 2026 coal prices to remain above pre-pandemic levels with the Newcastle Index projected to average around $114 per metric ton.
