Semirara Mining and Power Corp. (SMPC) reported a first-quarter net income of P4.4 billion, down 33 percent from P6.54 billion a year ago, as lower coal prices offset gains from its power segment.

In a stock exchange disclosure on Friday, the company said total revenues declined 10 percent to P16.51 billion from P18.43 billion, dragged by weaker coal prices and shipments.

Cash costs dipped just 2 percent to P9.82 billion from P10.04 billion, as higher production and operating expenses offset a lower government share, narrowing margins.

“We navigated the softer energy market through improved power generation and coal production, strengthened contracting strategies, and disciplined cost management.”

“These fundamentals will continue to guide us in an increasingly dynamic energy landscape,” said SMPC president, COO and chief sustainability officer Maria Cristina C. Gotianun.

Coal production rose 16 percent to 5.7 million metric tons (MMT) from 4.9 MMT, helped by better access to seams in the Narra mine following pre-stripping work last year.

Deliveries down

Shipments slipped 2 percent to 4.7 MMT due to lower domestic sales. Foreign shipments remained steady at 2.7 MMT, with additional exports to China, Brunei and Vietnam.

The average coal selling price dropped 17 percent to P2,481 per metric ton from P2,978, reflecting stabilizing global prices and more low-grade shipments.

Benchmark indices also declined: the Newcastle Index fell 16 percent to $105.4 from $126, while the Indonesian Coal Index 4 slid 14 percent to $49.3 from $57.2.

Gross power generation grew 9 percent to 1,535 gigawatt hours (GWh) from 1,408 GWh, following the restoration of SCPC Unit 2’s 300 megawatts (MW) dependable capacity in May 2024.

Total power sales rose 11 percent to 1,427 GWh from 1,281 GWh, with 64 percent sold to the spot market.

Average power selling price dipped 1 percent to P4.42 per kilowatt-hour (/kWh) from P4.47, as stronger bilateral contract rates offset lower spot prices. Spot prices in the Luzon-Visayas grid dropped 21 percent to P3.63/kWh from P4.61 on increased supply.

By end-March, 40 percent of SMPC’s 840 MW dependable power capacity was under contract. After station service, 421.6 MW remained available for the spot market.