Semirara Mining and Power Corp. (SMPC) reported its net income dropped by 26 percent in the first half of the year to P19.2 billion, from P25.8 billion in the same period last year.
The company attributed the decline mainly to the high base effect and normalizing coal indices.
Still, SMPC said it recorded higher coal shipments, improved plant availability and increased electricity sales at elevated prices.
From January to June, average coal price indices Newcastle plummeted by 54 percent, from $320.3 to $148.9, while average ICI4 price dropped by 17 percent, from $85.7 to $71.
“Even with lower coal prices, we delivered our second-best first half results because of China demand recovery and the improved performance of Sem-Calaca Power Corp. unit 2,” said Maria Cristina Gotianun, SMPC president and chief operating officer, in a statement.
“The second half will be challenging because of the rainy season and planned shutdown of our three power plants but with our high starting inventory and strategic pivot to the spot market, we believe we can weather these headwinds,” Gotianun added.
Earlier, SMPC had trial shipments of coal to Japan in a bid to reduce dependency on the Chinese market.
