Semirara Mining and Power Corp. (SMPC) expects profit growth this year despite the plant shutdowns as its coal business is expected to offset the slowdown in energy generation, company officials said.
“Our expectations for coal is higher because of the higher prices,” Junalina S. Tabor, SMPC chief finance officer, told reporters.
She said the company’s assumption is for coal revenues to increase as the price of the commodity rises with the peso’s depreciation against the US dollar.
In a statement, SMPC President Victor A. Consunji said: “Even with the plant shutdowns, we are on track to deliver full year growth. We expect to offset our replacement power costs in the succeeding quarters from our insurance claim.”
Mr. Consunji was referring to its unit, Southwest Luzon Power Generation Corp., which has a business interruption insurance that covers the loss of business income as a result of damage to the insured asset. — Victor V. Saulon