INTEGRATED energy company Semirara Mining and Power Corporation (SMPC) reported on Friday a net income of P12 billion for 2016, up 42 percent from P8.47 billion a year earlier.
The company told the Philippine Stock Exchange (PSE) higher coal and power sales accounted for the record performance.
More than half of the consolidated income, or P6.6 billion, came from the power segment, with Sem-Calaca Power Corporation (SCPC) and Southwest Luzon Power Generation Corporation (SLPGC) contributing P2.9 billion and P3.7 billion, respectively, it said.
Commencement of the commercial operations of Southwest Luzon beginning second quarter of 2016 offset the decreased availability and downtimes of the Sem-Calaca plants, resulting in total generation of 4,292 gigawatt hours (GWh), a 3 percent uptick from 4,170 GWh the previous year.
Despite weak global prices in the first half of the year, the coal segment delivered P5.4 billion in net earnings, an 86 percent increase year-on-year. The growth was driven by record coal sales of 12.8 million metric tons, up 52 percent from 8.4 million MT in 2015.
The company said the composite average price of coal fell 9 percent from P1,943 per ton to P1,885 per ton year-on-year. During the same period, low-grade coal supplied to Southwest Luzon more than doubled, effectively pulling down the average price of coal.
“We delivered a solid 2016 performance despite market headwinds and operational challenges. Much of the credit goes to our people, host community, investors and government partners,” SMPC President and COO Victor A. Consunji said.
In a separate development, the SMPC board approved the declaration of stock dividends amounting to P3.2 billion, divided into 3.2 billion shares at a par value of P1 per share, or three common shares for every one common share held from the unrestricted retained earnings of the corporation as of December 31, 2016.
The SMPC board authorized the company president to determine the record date and payment date for the stock dividends.
The stock dividend declaration is subject to shareholder approval in the next SMPC annual stockholders’ meeting on May 2.