Integrated energy company Semirara Mining and Power Corp. said Wednesday it recorded a 40-percent decline in consolidated net income to P9 billion in the first quarter from a record P15 billion a year ago because of high-base effect.
SMPC posted its highest quarterly bottom line in the first quarter of 2022.
Consolidated revenues contracted by 29 percent in the first quarter to P20.7 billion from P29.1 billion on weaker coal contribution. This was offset by all-time high revenues from the power segment.
Coal revenues fell 40 percent from P25.7 billion to P15.5 billion on lower shipments and selling prices as the company turned cautious amid market volatility.
“We limited our first-quarter exports because of the wild price swings. Now that prices have settled, we intend to boost our foreign shipments in the coming months,” said SMPC president and chief operating officer Maria Cristina Gotianun.
The company plans to increase coal sales to the local market to 70 percent this year from 50 percent in 2022, while the remaining 30 percent will be for export.
“Our sales target for this year is between 15 [million] and 16 million metric tons,” she said.
Total coal shipments from January to March receded by 31 percent from 5.1 million metric tons to 3.5 MMT following a 52-percent drop in exports from 3.1 MMT to 1.5 MMT and flat domestic sales at 2 MMT.
Semirara coal average selling prices softened by 14 percent from P5,125 per metric ton to P4,427 per MT on sluggish exports and higher shipments of lower grade coal.
Revenues from the power businesses surged 59 percent from P4.8 billion to a record high of P7.7 billion on the back of double-digit improvements across key operating metrics.
SMPC said that with the commercial operation of SEM-Calaca Power Corp.’s Unit 2 on Oct. 9, 2022, overall plant availability surged to 86 percent, while total average capacity increased by 32 percent from 520 MW to 688 MW.
Total gross generation rebounded by 44 percent from 914 gigawatt-hours to 1,316 GWh, as three of the four SMPC-owned power plants recorded better availability and average capacity.
Total power sales accelerated by 37 percent to 1,241 GWh, bulk of which was sold to the Wholesale Electricity Spot Market. Sales to the spot market expanded by 69 percent to 880 GWh.
SMPC said the easing fuel prices and sluggish January demand led to a 2-percent dip in spot ASP from P6.84 per kWh to P6.69 per kWh.
Higher spot sales and a 53-percent upturn in BCQ prices lifted overall ASP by 17 percent to P6.17 per kWh.
“As we move forward into 2023, we expect global coal prices to consolidate on economic softening, high fuel inventories and warm winter in Europe,” Gotianun said.
She said prices at the electricity spot market should remain elevated but would likely trend lower year-on-year due to secondary price caps and easing fuel prices.
“Potential upside drivers include strengthening post-pandemic demand, our high uncontracted capacity and improved performance of SCPC Unit 2,” Gotianun said.