Semirara power units boost profits to P7.86 billion

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SEMIRARA Mining and Power Corp. (SMPC) posted a 24-percent increase in net income in the first half of the year to P7.86 billion, from P6.36 billion in the same period a year ago, mainly due to stronger contributions from its power units.

Net of eliminations, coal, Sem-Calaca Power Corp. (SCPC) and Southwest Luzon Power Generation Corp. (SLPGC) contributed P4.23 billion, P2.14 billion and P1.50 billion, respectively.

Coal production increased by 25 percent year-on-year (YoY) to 7.35 million metric tons (MMT), from 5.88 MMT last year. Production is inclusive of low-grade coal of 454 thousand tons and 772 thousand tons in the first half of 2016 and 2017, respectively. Coal-sales volume, meanwhile, slightly dropped by 4 percent to 6.3 MMT tons in end-June this year, from 6.6 million in the first half last year, mainly due to timing difference of export deliveries.

On the other hand, energy generation of SCPC increased by 14 percent to 1,383 gigawatt-hours (GWh), from 1,212 GWh last year. Although Unit 1 was on maintenance shutdown the whole of the first quarter and only came back online in mid-April this year, average load increased to 244 megawatts (MW), from 184 MW last year. Meanwhile, Unit 2 was operating more reliably this year. Total energy sold slightly increased by 1 percent to 1401 GWh, from 1,390 GWh in the first half of 2016.

Meanwhile, SLPGC recorded an 8-percent increase in generation at 817 GWh, from 754 GWh last year. Both units are already on commercial operation. Its certificate of compliance from the Energy Regulatory Commission, which allows the plants to run at full capacity of 150 MW each, was issued on May 15. Total average load of both plants increased by 6 percent from last year. Total energy sold increased by 2 percent to 771 GWh, from 757 GWh last year.

Before eliminations, coal, SCPC, and SLPGC recorded core net income after tax of P5.32 billion, P1.15 billion and P1.4 billion, respectively.

SMPC is the only power producer in the country that owns and mines its own fuel source, allowing it to generate affordable baseload power for the Luzon and Visayas grids.

The company spent P81.46 million for its community and environmental stewardship projects in Semirara Island during the first half of the year.

About P42.5 million went to the construction of community infrastructure. This includes 14 completed and ongoing barangay evacuation sheds, sports facilities, roads and bridges, among others.

The rest of the amount was spent on health, safety and environment stewardship programs. These include the procurement of medicines, sponsorship of community health seminars, inland and mangrove reforestation, biodiversity conservation, among others.

Last week, SMPC said it spent P3.5 billion on its mining equipment capital expenditures during the first half of the year.

SMPC aims to increase its coal production to 16 million metric tons in the next two to three years to align with the national government’s push for power stability, optimal energy pricing and modernized infrastructure.