MANILA, Philippines – Semirara Mining and Power Corporation (SMPC) experienced a 33-percent decrease in net income during the first half, affected primarily by declines in coal and electricity prices.

In a statement released on Monday, SMPC reported net earnings of P8.4 billion, down from P12.6 billion in the same period last year. Revenue from its coal segment fell by 42 percent, while the power division’s income dropped by 16 percent.

The company’s second-quarter net income similarly declined by 33 percent, reaching P4.1 billion compared to P6.1 billion a year earlier.

Coal production, however, increased by 8 percent to 5.6 million metric tons in the second quarter from 5.2 million metric tons previously, with total shipments remaining flat at 4.6 million metric tons. Despite the higher output, the average selling price for coal decreased by 20 percent to P2,223 per metric ton from P2,780.

The downturn in coal prices corresponded to broader market trends, as the Newcastle Index, the benchmark for thermal coal in the Asia-Pacific region, fell 26 percent year-on-year to $100.5 per metric ton. Similarly, the Indonesian Coal Index 4 declined by 16 percent to $46.4 per metric ton.

In contrast, Semirara’s power segment benefited from increased plant availability, resulting in a 17-percent rise in power sales to 1,435 gigawatt hours from 1,228 gigawatt hours. Approximately 56 percent of energy sales were made through the Wholesale Electricity Spot Market.

Despite higher volume, the average price for power sales decreased by 19 percent to P4.51 per kilowatt hour from P5.58. Prices in the spot market saw an even steeper drop of 42 percent to P4.04 per kilowatt hour from P6.91.

Maria Cristina Gotianun, SMPC president, COO, and chief sustainability officer, stated, "While energy prices eased, we ramped up coal production and boosted power generation. By keeping our costs under control and operating more efficiently, we were able to cushion the impact of weaker prices."

Looking forward, Gotianun remarked that prices are expected to stabilize, with the company focusing on increasing coal output to meet its 18 million metric ton target and optimizing power generation to maximize contracted capacity.