March 3, 2020 | 12:05 am
CONSUNJI-LED
Semirara Mining and Power Corp. (SMPC) reported a 20.7% decrease in income last
year to P9.6 billion after its coal business segment recorded a profit decline
while one of its power plants recorded lower sales.
In a disclosure to the
stock exchange, the integrated energy company said its coal output hit a record
high of 15.2 million metric tons (MT) last year after registering a 17% growth.
“The record high
production is a combination of higher capacities and good weather condition in
the current year,” said SMPC, the vertically integrated power producer that
mines its own fuel source, allowing it to generate affordable baseload power.
Coal sales also reached record at 15.6 million MT, up 35% from the previous
year. Of last year’s coal sales, 34% were sold to domestic users while 66% are
sold overseas.
The company said the
decline in domestic sales was largely because of the low off-take of its own
power units, namely units 1 and 2 of Sem-Calaca Power Corp. (SCPC), which
embarked on a “life-extension” program.
“The depressed coal
prices brought down average selling price per MT by 22%. The negative impact of
the decline in coal prices was mitigated by the record high coal shipment
performance,” the company said.
Gross coal revenue rose
by 5% to P32.3 billion, although the coal business segment booked lower profits
of P7.4 billion, or down by 23%.
Meanwhile, SCPC
registered a 54% decline in gross generation to 1,519 gigawatt-hours (GWh)
after its two power generation units underwent a life extension program last
year.
Unit 1 was shut down on
Dec. 30, 2018 and was back online in September 2019. Unit 2 was shut down in
October 2019 to give way for its life-extension program, although even when it
was operating, its load was de-rated to 200 megawatts (MW) because of condenser
issues.
As a result, SCPC’s
sales volume fell by 45% to 1,848 GWh. Last year’s composite average price of
energy sold went down by 8%, contributing to the 51% decrease in gross energy
sales to P7 billion.
Meanwhile, Southwest Luzon Power Generation Corp. (SLPGC) recorded a 51% rise
in gross generation to 2,070 GWh. Its plant availability last year was at 83%
with a combined average load of 286 MW.
SLPGC’s two units
registered an improvement in its capacity factor at 52% last year. In 2018, its
unit 1 was shut down because of an accident that resulted in a crack in the
rotor starting March 6. During that year, it was down for around six months.
The unit went back to
normal operation on the last week of September 2018, after a successful repair
of the rotor.
“The insurance claim
for material damage and business interruption was already fully paid in 2019,”
SMPC said.
Around 76% of the
plant’s saleable energy was traded at the spot market as its power supply
agreements expired in 2018. SLPGC benefited from the higher market prices last
year.
Volume of energy sold
went up by 45% to 1,854 GWh, while gross energy revenue climbed by 61% to P8.1
billion with the “significant increase” in volume sold and higher prices at the
wholesale electricity spot market.
SCPC core profits fell
161% to negative P758 million. In contrast, SLPGC’s core profits jumped by 182%
to P2.8 billion.
Net of eliminations,
the business segments coal, SCPC and SLPGC contributed P6.2 billion, P58.9
million and P3.5 billion, respectively, in 2019.
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