Integrated energy firm Semirara Mining and Power Corp. (SMPC) reported a 33 percent drop in consolidated net income to P8.4 billion in the first half of the year from P12.6 billion a year ago, as coal and electricity prices continued to normalize from elevated levels.

“While energy prices eased, we ramped up coal production and boosted power generation. By keeping our costs under control and operating more efficiently, we were able to cushion the impact of weaker prices,” SMPC President, Chief Operating Officer and Chief Sustainability Officer Maria Cristina C. Gotianun said in a stock exchange report on Monday.

In the second quarter alone, net income fell 33 percent year-on-year to P4.1 billion from P6.1 billion.

Earnings also slipped 6 percent from the previous quarter’s P4.35 billion, as muted coal performance offset improved results from the power segment.

The average Newcastle Index in the second quarter dropped 26 percent to $100.5 from $135.6, while the Indonesian Coal Index 4 fell 16 percent to $46.4 from $55.0.

Spot electricity prices in the Luzon-Visayas grid also declined 42 percent to P4.04 per kilowatt-hour (kWh) from P6.91/kWh.

Coal shipments held steady at 4.6 million metric tons (MMT), with higher deliveries to SMPC’s power plants offsetting weaker exports. Production increased by 8 percent to 5.6 MMT from 5.2 MMT, driven by better access to coal seams at the Narra mine.

The average selling price of Semirara coal fell 20 percent to P2,223 per metric ton from P2,780, reflecting market corrections and a larger share of lower-grade coal.

Total power sales rose 17 percent in the second quarter to 1,435 gigawatt-hours (GWh) from 1,228 GWh a year earlier, supported by improved plant availability and average capacity. Last year’s results were weighed down by a 77-day planned outage of SCPC Unit 2.

Of the total energy sold, 56 percent went to the spot market, while 44 percent was delivered through bilateral contracts.

The average selling price for electricity declined 19 percent to P4.51/kWh from P5.58/kWh, reflecting wider supply margins in the Wholesale Electricity Spot Market.

As of the end of June, 38 percent of SMPC’s 840MW total dependable capacity was under contract. After deducting periodic station service, 435.60MW remained available for spot market sales.

“Looking ahead, we expect prices to remain relatively stable. Our focus is on ramping up coal production toward our 18 million metric ton target and optimizing our generation mix to maximize contracted capacity,” Gotianun said.