Semirara Mining and Power Corp., the biggest coal producer, said Friday net income surged 244 percent in the first nine months to P10.3 billion from P3 billion in the same period last year and exceeded its pre-pandemic annual net income of P9.7 billion.
SMPC attributed the triple-digit growth to the 38-percent rise in the average coal selling prices and 51-percent increase in sales volume.
“We expect our coal segment to continue to do well for the rest of the year because of elevated coal prices and sustained strong demand from China,” said SMPC president and chief operating officer Maria Cristina Gotianun in a statement.
The company netted P4 billion in the third quarter, or nearly six times the P750-million earnings it recorded in the same period last year.
Average selling prices from July to September jumped 82 percent on the back of higher exports, which grew 108 percent year-on-year.
SMPC said global coal prices are seeing a dramatic spike this year due to severe demand and supply imbalances owing to China’s ban on Australian coal, strong rebound in economic activities, low stockpiles in China, Europe and India, COVID-19 restrictions, heavy rainfall in major coal mines and logistical disruptions.
The company said that in terms of net income contribution, coal accounted for 78 percent of its net income while subsidiaries Sem-Calaca Power Corp. and Southwest Luzon Power Generation Corp. contributed 17 percent and 5 percent, respectively.
The SMPC board earlier approved and declared P7.4 billion in special cash dividends. This is on top of the P5.3 billion in regular cash dividends paid out in April this year.