Integrated energy company Semirara Mining and Power Corporation, on Tuesday, reported a record-breaking bottom line growth amid favorable market conditions.
In a report to the Philippine Stock Exchange, the company said its consolidated net income for the full-year 2022 ballooned by 146 percent to P39.9 billion from P16.2 billion a year ago.
Robust domestic coal shipments, higher spot electricity sales, and elevated market prices were the main growth drivers last year, according to SMPC.
Based on its financial report, the company’s domestic coal sales jumped by 33 percent from 5.8 million metric tons to a historic high of 7.7 million MT, while exports slumped by 24 percent from 9.4 million MT to 7.1 million MT.
The average selling price of Semirara coal spiked by 91 percent from P2,695 to a record level of P5,136 on the back of soaring index prices and higher-grade coal sold.
Meanwhile, combined spot electricity sales from SMPC subsidiaries SEM-Calaca Power Corporation and Southwest Luzon Power Generation Corporation surged by 83 percent from 1,028-gigawatt hours to 1,881 GWh.
Less China-dependent
“Last year, we focused on the Philippine, South Korean, and other ASEAN markets to lessen our dependency on China, which had been importing heavily discounted Russian coal,” SMPC president and COO Maria Cristina Gotianun said.
“Diversifying our market focus allowed us to get the best price for our inventory,” she added.
SMPC has earmarked P5.6 billion for its capital expenditure program this year, up 8 percent from last year’s P5.2 billion allocation.
The company said the bulk or P4.1 billion of the budget will bankroll mining equipment refleeting of its coal segment.
The remaining P1.5 billion, on the other hand, will be used for the planned maintenance activities of its power subsidiaries — SEM-Calaca Power Corporation and Southwest Luzon Power Generation Corporation.