Semirara Mining and Power Corporation (SMPC), led by the Consunji family, announced a 33% decrease in its second-quarter net income, posting ₱4.1 billion as coal and electricity prices stabilized from last year’s elevated levels. This reduction in earnings affected the integrated energy firm's margins despite higher coal output and power generation.

The reported figure also reflected a 6% decline from the first quarter's ₱4.35 billion, as weaker coal segment performance counterbalanced gains in the power business.

Maria Cristina C. Gotianun, SMPC's 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."

Market indicators showed notable declines: the Newcastle Index averaged $100.5 per metric ton in Q2, down 26% year-on-year, while the Indonesian Coal Index 4 fell 16% to $46.4. In the Philippines, spot electricity prices in the Luzon-Visayas grid dropped sharply by 42% to ₱4.04 per kilowatt-hour.

For the first half of 2024, SMPC recorded consolidated net income of ₱8.4 billion, marking a 33% decrease compared to ₱12.6 billion during the same period last year.

Coal selling prices for Semirara declined 20% to ₱2,223 per metric ton due to market corrections and a higher volume of lower-grade coal shipments. However, total coal production rose by 8% to 5.6 million metric tons, supported by improved seam access at the Narra mine. Shipments stayed steady at 4.6 million metric tons as increased deliveries to company-owned power plants offset decreased export volumes.

Electricity sales in the quarter increased 17% to 1,435 gigawatt-hours (GWh) from 1,228 GWh a year earlier, driven by enhanced plant availability and increased average capacity. Notably, the SCPC Unit 2, which was offline for a 77-day maintenance last year, has since resumed full 300MW operation.

Looking ahead, Gotianun remarked, "We expect prices to remain relatively stable. Our focus is on ramping up coal production toward our 18 million metric ton target and optimizing our generation mix to maximize contracted capacity."

As of June-end, 38% of SMPC's dependable 840MW capacity was secured through contracts, with the remaining 435.6MW available for spot market sales after covering internal requirements.

SMPC remains the Philippines' largest coal producer and operates two major subsidiaries—Sem-Calaca Power Corporation and Southwest Luzon Power Generation Corporation—that provide baseload power through bilateral agreements and participation in the Wholesale Electricity Spot Market (WESM).