Tuesday, May 8, 2018

Semirara Mining top exec sees 20% drop in power output in January-March 2018


By Lenie Lectura -  May 7, 2018

SEMIRARA Mining and Power Corp. (SMPC) sees a decline in energy output in the first quarter of the year, mainly on account of plant-outage incidents.
“I don’t know exactly how many megawatt [MW] hours, but we’re down more than 20 percent,” company President and COO Victor Consunji said.
Consunji added unit 1 of Southwest Luzon Power Generation Corp. (SLGPC) is still on shutdown. “We have a rotor problem. The outage is extended until August this year.”
In March unit 1 of SLPGC was shut down due to abnormal turbine vibration. The company said in a disclosure to the stock exchange on Monday that unit 1 shut down will continue for about 90 days to allow the full completion of repairs of the machine.
SLPGC power plants have machinery breakdown and business interruption insurance cover.
The company is now closely working and coordinating with reinsurers and their technical consultants to reinstate the unit back to full operation. 
Consunji is hopeful the expected decline in power generation will not hurt the company’s first quarter numbers.  
“We hope not because the company’s coal business could offset the decline in its power business,” Consjuni added.
The company will release its first-quarter financial report on Thursday.
In 2017 a favorable coal-market condition increased the company’s net income to P14.2 billion, or 18 percent higher.
Also, the company’s energy generation last year increased 21 percent to 5,202 megawatts due to the augmented capacity Sem-Calaca Power Corp. (SCPC) unit 1, higher availability of SCPC unit 2 and full commercial operation of the 2×150-MW power units.
The company said 2017 was an excellent year, “allowing us to refocus on our core strategies.”
For 2018 SMPC is hopeful it will surpass last year’s performance.  
“Of course, everybody will try for improvements,” company Chairman Isidro Consunji said.

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