Soaring coal prices prop up Semirara’s bottom line in H1
MANILA— Semirara Mining and Power Corp. saw earnings rebound in the first half of the year on the back of higher coal prices.
In a disclosure to the Philippine Stock Exchange on Wednesday, the subsidiary of Consunji-led DMCI Holdings Inc. reported a net income that skyrocketed 311% yearon-year to P25.8 billion in the first half of the year. In the second quarter, Semirara said its net income soared 171% year-on-year to P10.78 billion.
Commenting on its quarterly performance, Semirara noted how extreme weather conditions boosted coal consumption worldwide, while the ongoing war in Ukraine prompted European countries to wean themselves off Russian energy.
The DMCI subsidiary said 85% of its net income in the first half of 2022 was propped up by its coal segment.
Coal revenues surged 65% year-onyear to P19.46 billion in the second quarter.“Coal index prices surged as extreme weather conditions in Australia and EU bans on Russian coal and gas upended global supply,” the company said in a statement. “Meanwhile, coal consumption rose as several countries switched from gas to coal plants to meet higher cooling requirements amid prolonged, severe heat waves.”
Semirara explained that its coal segment benefitted from record-high selling prices of this energy source, the depreciating peso, wider profit margins and lower shipping costs. The company supplies coal to industrial facilities locally. Semirara also exports coal to China, South Korea and Vietnam.
But financial results showed Semirara’s net income plummeted 28.25% quarter-on-quarter. The company reported that coal production fell 21% year-on-year in the first half, resulting in lower exports, which sagged 44%, while coal sales dropped 25%.
Semirara disclosed that 79% of their planned capital expenditures for this year will fund heavy equipment maintenance, water seepage management programs and the construction of a 30 MW power plant in months to come.
Shares in Semirara were trading down 1.11% as of 11:30 a.m. on Wednesday.