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Semirara Mining Corp. profits slightly climbed last year on higher
domestic coal demand, boosted further by the firm’s foray into
offshore markets to maximize production, the company disclosed
Tuesday.
In its definitive statement submitted to the
Philippine Stock Exchange and the Securities and Exchange
Commission, the coal firm reported that its net income after tax
inched up by 5 percent to P633 year-on-year with earnings per share
growing by 6 percent to P2.28 from P2.161 the previous year.
Coal revenues at end-2007 grew to a record level
of P6.38 billion or 39 percent higher than a year ago due to
“robust market demand.” The company also generated another P90.7
million from coal handling at the Calaca coal yard, which was 6
percent lower year-on-year since it cut its dependence on the
National Power Corp. Calaca plant’s deliveries were reduced to 1
percent from its 2-percent share in the revenue in 2006.
The company achieved economies of scale by
increasing production, which in turn cut the cost of coal sold per
metric ton (MT) by 17 percent to P1,453.04. However, cost of sales
surged by 40 percent to P5.19 billion as more volumes were sold. The
gross profit went up by 31 percent to P1.27 billion but due to lower
composite average selling price per metric ton, gross profit margin
slid lower down by 20 percent from 21 percent the previous year.
Operating expenses surged by 144 percent to
P324.38 million while costs also increased due to higher marketing
and selling transactions. The resulting net income before tax showed
grew by 6 percent to P960.77 million.
According to Semirara, shipment of more export
sales towards boosted cash at end-December as payments were
collected right after the shipment of coal, unlike in local
deliveries wherein collection period ranges between 45 to 60 days.
The coal firm also recouped its temporary investments the previous
year, which allowed the resulting cash to grow by 223 percent to
P1.65 billion year-on-year.
“Learning from the costly experience of
dependence in local markets, management intensified its efforts to
break through the barriers and penetrate the export markets,”
Semirara said. The company grabbed the opportunity to go out of the
country when there was a regional shortage of thermal coal. Its
maiden shipment to South China in February last year and more
deliveries to India and Hong Kong followed.
Net receivables almost doubled to P1.12 billion
due to the surge in trade receivables with increased sales in 2007,
96 percent of which were trade receivables from local and export
sales.
-- Likha C. Cuevas-Miel
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