Semirara profit surges 42% to P12 B in 2016

Updated February 25, 2017, 9:57 AM By James A. Loyola

http://business.mb.com.ph/2017/02/24/semirara-profit-surges-42-to-p12-b-in-2016/

Semirara Mining and Power Corporation reported a 42 percent surge in consolidated net income to P12.04 billion last year from the P8.47 billion it posted in 2015.

In a disclosure to the Philippine Stock Exchange, the firm said the net contribution to the bottom line by coal, Sem-Calaca Power Corporation (SCPC), and Southwest Luzon Power Generation Corporation (SLPGC), after eliminations, are P5.42 billion, P2.87 billion, and P3.71 million, respectively.

Before eliminations, the coal segment posted an increase of 48 percent in net income to P10.00 billion from P6.74 billion in 2015 on the back of higher sales volume. This is inclusive of the dividend income from SCPC of P1.5 billion and P2.5 billion in 2015 and 2016, respectively.

Production and coal sales set new record highs at 12.8 million tons. Coal production is inclusive of 900,000 tons of low-grade coal.

Composite average price of coal posted at P1,885 per ton, 9 percent down from P1,943 a ton in 2015. Low-grade coal sold to own power plants more than doubled in 2016 at 1.95 million tons from 955,000 tons in 2015, thus pulling down average price.

On a stand-alone basis, SCPC posted a net income of P1.41 billion, down by 57 percent from P3.28 billion in 2015.

Decreased availability of plants due to more downtimes dragged total gross generation down by 27 percent at 2,909 gwh from 3,959 gwh last year. As a result, total energy sold dropped by 12 percent to 3,322 gwh in 2016 from 3,754 gwh in 2015.

ASP also dropped by 3 percent at P3.31/kwh from P3.42/kwh last year. Meanwhile, cost of energy sold increased by 32 percent to P2.24/kwh from P1.69kwh in 2015.

On the other hand, SLPGC’s 2x150MW plants started contributing this year with a P3.22 billion stand-alone net income, as against P40 million last year. Gross generation posted a 555 percent growth YoY at 1,383 gwh from 211 gwh in 2015.

The plants’ power supply contracts were already effective, and total volume sold soared by 510 percent to 1,478 gwh from 242  gwh in 2015. ASP is also higher by 46 percent this year at P4.42/kwh, compared to last year’s R3.03/kwh. SLPGC’s profit is more than double compared to SCPC’s.