Wednesday, March 4, 2020

Consunjis’ Semirara business reports 21% slump in income



CONSUNJI-LED Semirara Mining and Power Corp. (SMPC) reported a 20.7% decrease in income last year to P9.6 billion after its coal business segment recorded a profit decline while one of its power plants recorded lower sales.
In a disclosure to the stock exchange, the integrated energy company said its coal output hit a record high of 15.2 million metric tons (MT) last year after registering a 17% growth.
“The record high production is a combination of higher capacities and good weather condition in the current year,” said SMPC, the vertically integrated power producer that mines its own fuel source, allowing it to generate affordable baseload power.
Coal sales also reached record at 15.6 million MT, up 35% from the previous year. Of last year’s coal sales, 34% were sold to domestic users while 66% are sold overseas.
The company said the decline in domestic sales was largely because of the low off-take of its own power units, namely units 1 and 2 of Sem-Calaca Power Corp. (SCPC), which embarked on a “life-extension” program.
“The depressed coal prices brought down average selling price per MT by 22%. The negative impact of the decline in coal prices was mitigated by the record high coal shipment performance,” the company said.
Gross coal revenue rose by 5% to P32.3 billion, although the coal business segment booked lower profits of P7.4 billion, or down by 23%.
Meanwhile, SCPC registered a 54% decline in gross generation to 1,519 gigawatt-hours (GWh) after its two power generation units underwent a life extension program last year.
Unit 1 was shut down on Dec. 30, 2018 and was back online in September 2019. Unit 2 was shut down in October 2019 to give way for its life-extension program, although even when it was operating, its load was de-rated to 200 megawatts (MW) because of condenser issues.
As a result, SCPC’s sales volume fell by 45% to 1,848 GWh. Last year’s composite average price of energy sold went down by 8%, contributing to the 51% decrease in gross energy sales to P7 billion.
Meanwhile, Southwest Luzon Power Generation Corp. (SLPGC) recorded a 51% rise in gross generation to 2,070 GWh. Its plant availability last year was at 83% with a combined average load of 286 MW.
SLPGC’s two units registered an improvement in its capacity factor at 52% last year. In 2018, its unit 1 was shut down because of an accident that resulted in a crack in the rotor starting March 6. During that year, it was down for around six months.
The unit went back to normal operation on the last week of September 2018, after a successful repair of the rotor.
“The insurance claim for material damage and business interruption was already fully paid in 2019,” SMPC said.
Around 76% of the plant’s saleable energy was traded at the spot market as its power supply agreements expired in 2018. SLPGC benefited from the higher market prices last year.
Volume of energy sold went up by 45% to 1,854 GWh, while gross energy revenue climbed by 61% to P8.1 billion with the “significant increase” in volume sold and higher prices at the wholesale electricity spot market.
SCPC core profits fell 161% to negative P758 million. In contrast, SLPGC’s core profits jumped by 182% to P2.8 billion.
Net of eliminations, the business segments coal, SCPC and SLPGC contributed P6.2 billion, P58.9 million and P3.5 billion, respectively, in 2019.

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