Semirara 2014 income drops 9% to P6.85B


SEMIRARA Mining and Power Corp.’s (SCC) consolidated net income last year of P6.85 billion was 9 percent lower compared P7.53 billion in 2013, the company said in a disclosure to the Philippine Stock Exchange on Monday..

The net contribution to the bottom line by the coal and power segments, after eliminations, were P3.64 billion and P3.22 billion, respectively, the SCC said.

On stand-alone basis, the coal segment posted an increase of 45 percent or a Net Income After Tax of P7.76 billion from P 5.34billion in 2013.

The coal segment net income is inclusive of the P3.5 billion dividend income from its wholly owned subsidiary of P3.5 billion.

The coal segment posted record high production and coal sales at 8 million metric tons (MT) and 8.9 million MT, respectively.

This year’s production is 6 percent higher while coal sales is higher by 16 percent compared to that of 2013.

SCC said the composite average price of coal posted at P2,127/MT, dropped by 3 percent from P2,185/MT, which is attributed to higher price on export, given the premium on higher coal quality.

Operating days were extended due to favorable weather; hence material movement was higher 26 percent at 103 million bank cubic metre (bcm) from 82 million bcm in 2013 giving rise to the higher production.

Semirara’s power segment on the other hand, posted a net income after tax of P2.59 billion from P4.71 billion in 2013, registering a 45 percent decline in net profit.

Included in the net income after tax this year was the recognized income tax benefit of P636 million resulting from Net Operating Loss Carry Over (NOLCO) on the sustained losses on replacement power (non-registered activity).

Total energy generated registered at 2,840 gigawatt-hours (GWh) compared 2,638 Gwh in 2013.

The 22 percent decline was a result of the prolonged commissioning of the new Distribution Control System (DCS) installed on Unit 2.

Total energy sold was 3,383 Gwh or 2 percent lower than 2013. Unit 1 registered higher availability at 84 percent compared to 83 percent in 2013, while Unit 2 registered lower availability of 50 percent compared to 83 percent in 2013 because of the prolonged shutdown in the first half.

Composite average price was lower by 15 percent at P3.64/kwhr compared to P4.26/kwhr in 2013 due to the negative impact of the drop in the Newcastle Index while cost of energy sold was higher at P2.75/kwhr.

This cost was up 48 percent compared to 2013 because of the higher cost of replacement power, which the company sourced from the spot market.


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