CONSUNJI-LED Semirara Mining and Power Corp. (SMPC) has transferred around P1.7-billion worth of royalty payments to the Department of Energy in the second quarter, marking a new record for the listed energy firm.
“Of the P1.7 billion, more than P1 billion will be retained by the national government. The rest will go to the host local government units of the SMPC mine site. The province of Antique will receive P136 million while the municipality of Caluya and Barangay Semirara will receive around P300 million and P230 million, respectively,” SMPC told the local bourse in a regulatory filing on Tuesday.
The Local Government Code of 1991 states that local government units are entitled to receive a 40% share of royalties from proceeds of activities in the petroleum, coal, geothermal, hydrothermal and wind industries.
SMPC said it was able to turn over its record-high quarterly amount to the government after generating P14.8 billion in revenues driven by high coal sales and increased average selling prices during the period.
“The pandemic has taken a significant toll on our country. We hope that our contribution can help boost our government’s response against COVID-19 (coronavirus disease 2019),” SMPC President and Chief Operating Officer Maria Cristina C. Gotianun said.
On its website, SMPC describes itself as the only power producer in the country that owns and mines its own fuel source. The firm earns its revenues through the production and sale of sub-bituminous coal. It also has existing coal supply contracts with its own power subsidiaries as well as other power plants, cement manufacturers and small boiler users.
The company previously reported that its consolidated net income rose by more than three times to P3.98 billion in the second quarter on the back of higher coal sales.
Shares in SMPC at the local bourse inched up by 2.79% or 46 centavos to finish at P16.96 apiece. — Angelica Y. Yang
