CONSUNJI-LED Semirara Mining and Power Corp. (SMPC) said its consolidated net income in the second quarter rose by more than three times to P3.98 billion versus the P1.05 billion recorded in the same period last year, after earning more from coal sales. 

Contributions from its coal segment hit P3.04 billion or more than six times its previous value year on year, SMPC told the local bourse in a regulatory filing on Tuesday. 

“We had a very good second quarter because of favorable market conditions. Sustaining our performance will be a challenge given the onset of the rainy season and our plant outages, but we are determined to optimize our performance,” SMPC President and Chief Operating Officer Maria Cristina C. Gotianun said. 

The firm’s second-quarter coal sales rose by 96% to 4.9 million metric tons (MMT) from the previous year-on-year figure of 2.5 MMT. 

In the same period, the average selling price of SMPC’s coal climbed by 49% to P2,393 as Newcastle coal prices peaked at $136 in June. 

Meanwhile, earnings from its power subsidiary Southwest Luzon Power Generation Corp. (SLGPC) from April to June reached P359 million, swinging from a net loss of P57 million in the second quarter last year. 

Total electricity sales in the second quarter hit 987 gigawatt hours (GWh), an 11% increase from the year-on-year value of 892 GWh, due to an improvement in SLPGC’s gross generation. 

“SEM-Calaca Power Corp., on the other hand, recorded a 3% dip in earnings contribution from P602 million to P581 million,” SMPC said, referring to its other power unit. 

In the six months ending June, the country’s largest coal producer recorded a consolidated net income of P6.28 billion, which is nearly double its full-year net income of P3.26 billion in 2020. 

On its website, SMPC says that it is the only power producer in the country that owns and mines its fuel source — coal. 

In May, SMPC Chairman and Chief Executive Officer Isidro A. Consunji said the firm was unlikely to return to pre-pandemic profit levels this year even as he expected its coal business to fare better in 2021. 

He said the company’s businesses experienced “significant setbacks” last year, including a drop in global coal prices, a slump in electricity prices and China’s mandatory import quotas aimed at boosting sales for its producers. 

Shares in SMPC at the local bourse improved by nearly 7% or P1.14 to finish at P17.48 apiece on Tuesday. — Angelica Y. Yang