SEMIRARA Mining and Power Corp. (SMPC) is targeting to produce 14.5 million metric tons (MMT) of coal in 2023 as it expects steady demand for the commodity.
The Consunji-led firm said in a statement on Monday that its coal production reached 13.7 MMT in January to September, already close to its goal of 14.5 MMT to 15 MMT in output this year.
“We expect stable demand for coal and electricity next year so we’re continually investing in our production and generation capacities,” SMPC President and Chief Operating Officer Maria Cristina C. Gotianun said in a statement.
For 2023, SMPC has set aside P5.6 billion for its capital expenditure (capex) projects, up by 8% compared to P5.2 billion in 2022.
The energy firm said P4.1 billion will be allocated for the mining equipment refleeting of its coal business, while P1.5 billion will be spent on maintenance activities plans for Sem-Calaca Power Corp. (SCPC) and Southwest Luzon Power Generation Corp. (SLPGC).
SMPC has spent P3.6 billion of its 2022 capex as of end-September. Of this, P2.2 billion was allotted for the acquisition of mining and support equipment while P1.4 billion went to the repair and replacement of plant components of SCPC and SLPGC.
The listed integrated energy firm posted a net income of P10.15 billion in the third quarter, almost three times higher the P4.01 billion recorded a year ago on high coal production and electricity prices.
Its revenues rose by 51.1% to P21.16 billion from the P14 billion recorded in the same period last year. Of its revenues, coal accounted for the biggest share at P15.04 billion or 71%, with power contributing P6.12 billion or 28.9%.
On Monday, shares of SMPC at the stock exchange closed 1.98% or 65 centavos lower to end at P32.20 per share. — AEOJ