Semirara Mining and Power Corp. (SMPC) posted a net income of P6.5 billion in the first quarter of the year, down 28 percent from P9 billion a year ago, attributed to weaker market prices despite higher coal shipments and energy sales volume.
Tthe company assured that efforts are underway to sustain its coal production.
SMPC said global coal indices declined due to weak demand from developed countries, driven by changes in energy policies, a shift toward renewable sources and slowing economic activities.
Coal prices under the Newcastle Index plummeted by 49 percent from an average of $247.8 to $126.0 per metric ton (MT), while the Indonesian Coal Index 4 retreated by 25 percent from an average of $76.5 to $57.2 per MT.
For the Luzon-Visayas electricity market, average spot prices fell by 27 percent from P6.28 to P4.61 per kilowatt hour on lower fuel costs and increased supply, the company said.
“While we faced some pricing challenges this quarter, our robust export sales and improved plant performance demonstrate the resilience and adaptability of our operations,” Maria Cristina Gotianun, SMPC president and chief operating officer, said in a statement.
For the same period, coal sales jumped by 37 percent from 3.5 million MT to 4.8 million MT, largely driven by exports which accelerated by 78 percent from 1.5 million MT to 2.7 million MT, SMPC said.
