SEMIRARA Mining and Power Corp. (SMPC) on Monday reported a second-quarter attributable net income of P10.19 billion, which is 5.5% lower than the P10.78 billion net income reported a year ago.

The decrease was attributed to reduced domestic coal sales, SMPC said in its second-quarter financial performance report.

Meanwhile, the company’s consolidated revenues for the April-to-June period expanded by 4%, reaching P23.87 billion from P22.95 billion the previous year.

During the second quarter, SMPC recorded a combined coal shipment of 4.5 million metric tons (MMT), marking a 21.6% increase compared to the 3.7 MMT of the previous year.

This growth was driven by higher volume deliveries to China and South Korea, the company said.

Shipments to China surged by 75% to 1.4 MMT from 0.8 MMT, while shipments to South Korea rose by 25% to 1 MMT from 0.8 MMT.

Despite a 14% rise in sales, domestic sales remained stagnant at 1.9 MMT due to reduced demand from cement factories and other industrial plants, according to the company.

In the second quarter, Semirara’s average coal selling price dropped by 23.1% to P4,151 per metric ton from its previous all-time high of P5,399 per metric ton.

Total production declined by 11.8% to 3 MMT from 3.4 MMT, which the company attributed to the onset of rains and ongoing stripping activities in Molave South Block 6 and Narra Block 1.

SMPC’s combined inventory increased by 12% to 2.8 MMT from 2.5 MMT due to steady production and weaker domestic sales. Year-to-date, inventory climbed by 40% to 2.8 MMT from 2 MMT.

In terms of power revenues, the second quarter saw a 43.4% increase to P6.91 billion from P4.82 billion the previous year.

The company’s overall plant availability improved to 80% from 64%, driven by enhanced availability of SEM-Calaca Power Corp.’s (SCPC) Unit 2. SCPC’s unit’s commercial operation last year boosted the total average capacity by 34.6% to 685 megawatts (MW) from 509 MW.

Total power gross generation rose by 26.7% to 1,212 gigawatt-hours (GWh) from 956 GWh, leading to a 21.8% increase in power sales to 1,097 GWh from 900 GWh.

Out of the total gross power generation, 66% was sold to the spot market.

For the second quarter, SMPC also reported a 42% rise in spot market sales to 720 GWh from 507 GWh, while the company’s bilateral contract sales contracted by 4.1% to 377 GWh from 393 GWh.

Maria Cristina C. Gotianun, SMPC’s president and chief operating officer, acknowledged that the second half of the year might present challenges due to the rainy season and planned shutdowns, but she expressed confidence in the company’s ability to navigate these obstacles given its high starting inventory and strategic focus on the spot market.

For the January-to-June period, the company’s attributable net income fell by 25.5% to P19.21 billion from P25.80 billion a year ago, as coal indices began to normalize.

Throughout the first half of the year, the average Newcastle coal price declined from $320.3 to $148, according to the company.

For the first six months, SMPC’s consolidated revenues decreased by 14.3% to P44.57 billion from P52.01 billion.

Ms. Gotianun said that despite lower coal prices, the company achieved strong first-half results due to increased coal demand in China and improved performance from its SCPC Unit 2.

On Monday, shares in the company rose by 55 centavos or 1.88% to close at P29.75 apiece. — Ashley Erika O. Jose