Semirara profit falls 33% on weaker coal, power prices

EARNINGS of Consunji-led Semirara Mining and Power Corp. (SMPC) fell 33% to P13.1 billion, mainly due to weaker coal and electricity prices, lower shipments, and higher production costs.

For the fourth quarter alone, the company reported consolidated net income of P3.2 billion, down 19% from the same period a year earlier.

“Prices were softer this year, but our operations still delivered record coal production and electricity sales,” SMPC President and Chief Operating Officer Maria Cristina C. Gotianun said in a statement on Wednesday.

In 2025, coal output reached a record-high 19.9 million metric tons (MMT), driven by improved access to coal seams at the Narra mine and government approval to increase annual production capacity to 20 MMT.

The company shipped 15.4 MMT, up 7% from the previous year, mainly due to the timing of export shipments and softer demand for some lower-calorific coal during the period.

The average selling price of Semirara coal fell 19% year on year to P2,302 per metric ton, reflecting lower global coal benchmarks and a higher share of lower-calorific shipments.

The decline mirrored the 22% drop in the average Newcastle Index to $105.60, as well as the 15% decrease in the Indonesian Coal Index 4 to $46.10.

“We’re also working to broaden our markets while keeping our mines and power plants running well,” Ms. Gotianun said.

Meanwhile, energy sales reached a record-high 5,296 gigawatt-hours, up 7% and supported by improved plant reliability.

However, the average electricity selling price dropped 8% to P4.38 per kilowatt-hour (kWh), reflecting wider supply margins in the Wholesale Electricity Spot Market (WESM).

According to SMPC, average WESM prices fell 27% to P3.73 per kWh as supply improved.

As of end-2025, 42% of the company’s 860-megawatt (MW) dependable capacity was contracted, with 422.3 MW available for spot market sales after accounting for station service requirements.

SMPC is the largest coal producer in the Philippines, accounting for 97% of domestic production.

However, operations at its main revenue-generating asset on Semirara Island in Antique province face uncertainty as its coal operating contract is scheduled for auction this year.

Semirara Island, located in Antique province, covers an area of about 55 square kilometers and can produce at least 16 MMT of coal annually.

SMPC has held the coal operating contract for the area for nearly 50 years, allowing it to explore, develop, and mine coal.

The contract is set to expire in July 2027, but the government has opted to bid it out this year along with other confirmed mineable reserves.

In preparation, SMPC said it is finalizing its mine plan while aiming to fulfill the remaining term of its current contract.

At the local bourse on Wednesday, shares in the company closed unchanged at P28.40 each. — Sheldeen Joy Talavera