Manila Standard Today
BY KRISTA ANGELA M. MONTEALEGRE REPORTER
SEMIRARA Mining Corp. projects its earnings to grow by double digits this year on higher coal prices and power sales, a company official told reporters.
Isidro Consunji, Semirara vice chairman and chief executive, told reporters the company expects a growth of 20 percent to 40 percent in profits to as much as P5.6 billion from the P3.95 billion last year, depending on how the rehabilitation of its Calaca power plant proceeds.
Revenues are expected to hit as much as P30 billion, 31 percent higher than the P22.9 billion in 2009 on higher contributions from its coal and power businesses, which are seen to hit P18 billion to P20 billion and P9.5 billion, respectively.
Revenues are expected to hit as much as P30 billion, 31 percent higher than the P22.9 billion in 2009 on higher contributions from its coal and power businesses, which are seen to hit P18 billion to P20 billion and P9.5 billion, respectively.
Its coal output will be flat at 7.3 million tons, but revenues are seen to rise because of higher prices brought about by the flood in Queensland, Australia.
Its power output through wholly owned subsidiary SEM-Calaca Power Corp. is expected to increase to 2.1 billion kilowatt-hours this year from 1.6 billion in 2010. This will further rise to 3.1 billion in 2012.
Semirara has completed the rehabilitation of Unit 2, which has a rated capacity of 300 megawatts, higher than the 250-megawatt projection. Unit 1 is scheduled for a nine-month rehabilitation starting in July this year to increase its rated capacity to 270 megawatts.
DMCI Holdings Inc., which owns 56 percent of Semirara, acquired the Calaca plant for $361.71 million in July 2009 given a rated capacity of 350 megawatts.
The company has budgeted $120 million for rehabilitation, of which $80 million to $85 million has been spent.
The country’s largest coal producer said it may pursue the 600-megawatt expansion of its Calaca power plant without the investment of Manila Electric Co. (Meralco).
“If we can’t find a partner, we will talk to people who want to buy . . . we might go ahead without Meralco. That is a possibility,” Consunji said.
Meralco, however, remains the company’s first choice for its Calaca expansion.
“They are talking to us. They are talking to Aboitiz. The mix of fuel and the demand we have is not ideal [so] power costs [are expensive],” Consunji added.
Semirara shares rose to P221 on Monday from P218 on Friday.
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