Semirara Mining doubles Q1 income

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Semirara Mining Corp. is expecting to double its profit to P2 billion in the first quarter of this year with the recommencement of its mining operations in Antique, which were suspended due to a landslide a year earlier.

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Junalina Tabor, Chief Finance Officer of Semirara Mining Corp., said the country’s biggest coal producer was able to augment its first-quarter income by 100 percent, coming from a decline in profit during the first three months of 2013.

“We are seeing P2 billion in consolidated net income for the first quarter [based on preliminary figures]compared with last year’s P1 billion,” Tabor said on the sidelines of the company’s annual stockholders’ meeting held in Makati on Monday.

Last year, the coal segment of the company was deeply affected by the lower production, which resulted from the temporary suspension of its coal mining operations following the Panian West wall incident.

Five miners have been confirmed dead in late February 2013 after a large-scale commercial coal mine on Semirara Island in Panian, Antique collapsed.

As a result of the incident, the Department of Energy (DOE) has suspended Semirara Mining’s mining operations in the province.

The incident had caused a 42-percent decline in the listed mining firm’s net income after tax, which fell to P1.01 billion in the first quarter in 2013 from P1.73 billion in the same period in 2012.

With the continuation of the mining operations, among other things, the profit of Semirara Mining has now improved.

“[The growth drivers came] from the coal business. We resumed mining operations and we produced a higher [volume]as well as reduced our costs,” Tabor said.

In terms of revenues, she specified that the coal business segment booked about P5.4 billion while the power segment contributed about P1.9 billion.

Despite the positive guidance on its first-quarter financial performance, the company still has a gloomy outlook on its second-quarter profit.

“I think it’s not so good because we have a problem at the coal plant,” Isidro Consuji, chief executive officer of Semirara Mining, told reporters.

Referring to the Sem-Calaca existing power plant operations, Consuji said that the plant had technical problems but the first 300-MW unit is already up and running, while the second 300-MW unit is expected to resume operations within this month.

For full-year 2013, Semirara Mining Corp. boosted its income to P7.5 billion from P6.4 billion.

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