Weak coal prices pull down Semirara earnings

Semirara Mining and Power Corp. (SMPC) posted a net income of P19.6 billion in 2024, a 30 percent decline from P27.9 billion in 2023, as energy market conditions returned to normal.

“Despite price corrections, we focused on key factors within our control — maximizing production, achieving record-high coal shipments and power generation. Our disciplined strategy and dedicated team played a crucial role in navigating energy market shifts,” SMPC president, COO, and chief sustainability officer Maria Cristina Gotianun said.

Total shipments reached a record 16.5 million metric tons (MMT), while coal production remained steady at 16 MMT for the third consecutive year. Gross power generation hit 5,358 GWh.

Coal sales weak

The power segment remained stable, while the coal segment saw weaker contributions, driving a 26 percent decline in fourth-quarter net income to P3.9 billion from P5.3 billion.

The average selling price of electricity slipped 3 percent to P4.16/kWh, reflecting lower spot market prices but improved bilateral contract rates.

Coal prices also declined, with Semirara’s average selling price dropping 15 percent to P2,821 per metric ton due to market stabilization and a higher share of lower-grade coal shipments.

Power sales climbed 13 percent to 1,223 GWh, with 56 percent sold to the spot market. The company’s power capacity stood at 840 megawatt (MW) by year-end, with 30 percent under contract and 504.1 MW available for sale.