Business World Online
Posted on August 18, 2015 10:53:00 PM
By Krista A. M. Montealegre, Senior Reporter
SEMIRARA Mining and Power Corp. said its Calaca coal plant will supply an additional 300 megawatts to the electricity grid starting next month.
Semirara, the country’s biggest coal miner, had been boosting its power capacity which is its “main growth driver,” it said in its quarterly report filed with regulators, softening the impact of a suspension order against its coal operations at its Panian mine.
The company, through wholly-owned subsidiary SEM-Calaca Power Corp., owns and operates a 600-MW coal plant in the municipality of Calaca.
Through another subsidiary, Southwest Luzon Power Generation Corp. (SLPGC), the listed parent had expanded that Calaca coal plant to 900 MW through two 150-MW units.
Yesterday, DMCI President Isidro A. Consunji told a media briefing that output from the two new facilities will be commercially available by “end of the third quarter,” and will give the company P7.5 billion in additional revenues and P2 billion in net profit on an annual basis.
That fillip from the expanded coal plant would allow DMCI Holdings, Inc. -- owner of a 56% stake in Semirara -- to achieve its P12-billion core net income guidance for the year after posting a 28% year-on-year expansion in earnings to P6.6 billion in the first half, Mr. Consunji said.
Asked if that will also help make up for the losses from the coal operations, he said: “Hopefully.”
“We delivered a good first half performance and remain on track to meet our profit guidance of P12 billion,” Mr. Consunji said.
Semirara has been working with the Department of Energy for the lifting of a suspension order against its Panian mine in Antique which was dogged by regulatory issues after a deadly landslide last month buried at least nine mine workers alive.
It has so far been successful in convincing the Department of Environment and Natural Resources to restore an environmental compliance certificate for the expansion of that mine. The stay order against coal operations stays.
“The 30-day suspension has no impact to the company because we can catch up what we lost if we will be given a resumption order,” Semirara Chief Finance Officer Junalina S. Tabor said, noting that the company lost four operating days last month and has programmed 24 operating days in August based on its budget.
Should the suspension order be lifted, Semirara can work for 30 days during the months of October and November, depending on weather conditions, Ms. Tabor said.
Semirara has a coal stockpile of less than 300,000 tons, which may be good for less than a month, Ms. Tabor said. The company’s monthly coal production usually hits 800,000 tons worth P1.6 billion.
If its coal inventory dries up, Semirara will be forced to import coal to support its power plants, Mr. Consunji said.
Semirara is further expanding the now 900-MW Calaca plant by another 350 MW, setting aside a budget of P22-billion for that.
Mr. Consunji said Semirara will team up with another company -- likely a power subsidiary of a conglomerate -- for the project.
Aside from coal and power generation, DMCI Holdings also has interests in water utility, construction, real estate, infrastructure development, and coal and nickel mining.
Shares in Semirara slid P2.50 or 2.07% to P123.50 apiece, while shares in DMCI Holdings rose 12 centavos or 1.02% to P11.94 each. source
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