Semirara Mining income jumps 79.6% in H1

By Zinnia B. Dela Pena (The Philippine Star) Updated July 28, 2011 12:00 AM  MANILA, Philippines - Semirara Mining Corp. , the coal mining unit of the Consunji-led investment firm DMCI Holdings Inc., reported a 79.6 percent jump in its net profit in the first half of the year to P4.58 billion, already exceeding its full-year 2010 earnings. In a financial report submitted to securities regulators, Semirara said the strong growth in net income was due to higher sales from its coal operations. Consolidated revenues amounted to P15.97 billion, up 22.75 percent from the previous level of P13.01 billion. Cost of sales rose to P8.74 billion from P8.55 billion. The company sold 4.157 million metric tons of coal, reflecting the robust demand for coal, with inventory closing at 74,574 MT. The power segment’s revenue generation came from bilateral contracts and spot sales of 1,127 gigawatts per hour at an average price of P4.68 per kilowatt per hour. Consolidated gross profit stood at P7.23 billion, with the coal and power segments contributing P5.21 billion and P2.02 billion, respectively. As of end-June this year, Semirara had total assets of P31.67 billion as against liabilities of P18.31 billion. The coal segment’s total assets as of end-June stood at P11.26 billion, rising 4.8 percent from the year’s beginning balance of P10.74 billion. Semirara is planning to convert some areas of its Batangas property into an economic zone, to be pursued through another wholly-owned subsidiary to be created.         The Calaca plant is owned by wholly-owned unit SEM Calaca Power Corp. DMCI Holdings, which owns 56 percent of Semirara, won the bidding for the Calaca coal-fired facility in July 2009 with a price offer of $361.7 million. The plant is undergoing a seven-month rehabilitation, which would cost around $60 million. Its capacity is estimated to increase to 550 MW from the existing production of 340 MW. The Calaca facility consists of two 300-MW generating units and is designed to run as a base-load plant using local coal from Semirara Island. Semirara’s total investments for the Calaca facility are estimated to reach $483.6 million, which included the acquisition cost of $361.7 million. The remaining $121.89 million had been allocated for the rehabilitation and working capital requirements of the power plant.