Business World Online
Posted on August 07, 2014 09:21:00 PM
SEMIRARA Mining Corp. said net profit fell 26% in the first half of the year, with the performance of its power generation business dragging down overall results.
Net profit was P2.65 billion, the Consunji-controlled company said in a disclosure on Thursday, with the coal business contributing P2.74 billion of the total following a 59% jump in coal production to 5.1 million metric tons and a 23% increase in coal shipments to 4.4 million metric tons.
However, this was offset by the P540,000 net loss incurred by SEM-Calaca Power Corp., a subsidiary that owns and operates a 600-megawatt (MW) coal-fired power plant in Calaca, Batangas.
Semirara said the second 300-MW unit of the coal plant was shut down for scheduled maintenance from the start of the year to accommodate the replacement of its distribution control system (DCS).
“The testing and commissioning of the new DCS went beyond the original estimated timetable,” Semirara said.
The delay, the company said, resulted in the power business being exposed to high prices on the Wholesale Electricity Spot Market.
Its outage allowance under its deal with Manila Electric Co. was already taken up fully by the beginning of the second quarter, the company said.
Apart from its main power business, Southwest Luzon Power Corp. -- the project company for the first expansion of its coal plant -- booked non-capitalizable pre-operating expenses worth P38 million.
The said expansion involves construction of two 150 MW units.
Semirara plans to further expand the power plant, with a 350-MW project that is expected to proceed this year.
This entails an investment of around $500 million to $525 million and will be undertaken by another wholly owned unit, St. Raphael Power Generation Corp.
Semirara was incorporated in 1980 to explore, develop, and mine coal resources in Semirara island in Caluya, Antique.
Semirara closed at P385 on Thursday, up 3.11%. -- Claire-Ann Marie C. Feliciano source
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