Manila - In the first quarter of 2024, Semirara Mining and Power Corp. (SMPC), the Philippines' largest coal producer, experienced a significant increase in coal exports, surging 78% compared to the same period in 2023. This information was disclosed during SMPC's annual stockholders' meeting held on Monday, where the company reviewed its performance from January to March 2024.
According to Philippines News Agency, coal exports for the first quarter rose to 2.7 million metric tons, up from 1.5 million metric tons in the first quarter of the previous year. This substantial growth in exports contributed to a 37% increase in total coal sales, which reached 4.8 million metric tons, compared to 3.5 million metric tons last year. Domestic shipments also saw an uptick, growing 6% to 2.1 million metric tons from 2 million metric tons.
SMPC reported achieving a record high overall plant availability of 92%, which supported the increase in internal sales. Maria Cristina Gotianun, president and chief operating officer of SMPC, commented on the company’s resilience despite pricing challenges, attributing the strong performance to robust export sales and improved plant operations.
The company also noted that global coal indices have fallen due to reduced demand from developed countries, which are shifting towards renewable energy sources and experiencing slower economic activities. Nonetheless, SMPC’s integrated coal mining and power operations, which use coal to fuel its own power plants, have allowed it to create a localized value chain. This integration helped the company’s power plants to increase their electricity sales volume by 3% in the first quarter, reaching 1,281 gigawatt hours compared to 1,241 gigawatt hours in the previous period.
However, SMPC's net income for the period from January to March 2024 fell by 28% to PHP6.5 billion, down from PHP9 billion in the same period a year earlier. The decline was attributed to lower coal prices in the global market and reduced selling prices in the electricity spot market. Despite these financial setbacks, SMPC continues to make significant royalty payments to the government, benefiting both national and local government units where the firm operates.