Semirara Mining and Power Corp. (SMPC) posted a lower net income during the first half of 2019 in line with declines in contributions due to ongoing extension works on the life of one of its power plants.
The company is the only vertically integrated coal-fired power plant business in the country, the local source and supplier of coal to power plants, cement plants, and other small boilers.
In a regulatory filing submitted by SMPC vice president for Legal John Sadullo, the Consunji-led company said consolidated net income stood at P6.0 billion, down 26% year-on-year.
Semirara Coal and Power Corp. (SCPC) saw a P242-million drop in contributions to the company.
Unit 1 of its 2×300 MW power plant was offline in January to June because of the “life extension project.”
SMPC has embarked on a three-year life extension program that will increase the generation capacity of SCPC’s Unit 1 by 50 MW to 70 MW using 100% Semirara coal.
“Consequently, the higher volume sold by the coal segment and higher WESM (Wholesale Electricity Spot Market) prices, mitigated the drop in earnings as of first half 2019,” SMPC said.
The coal business contributed P4.64 billion, while South Luzon Power Corp. contributed P1.62 billion.
Despite company’s financial performance for the first half, SMPC actually posted a 57% earnings increase at P3.67 billion in April to June.
“The second quarter performance recovered as the power segment recovered in Q2 because Unit 3&4 posted higher availability augmented by higher WESM price,” it said.
“In addition, the coal segment achieved a 21% increase in volume sold quarter-over-quarter,” it said. —Ted Cordero/VDS, GMA News