SEMIRARA Mining and Power Corp. saw its first-half consolidated net income after tax plummet by 26 percent to P6 billion from P8.13 billion in the same period in 2018.
In a disclosure on Tuesday, the integrated energy company said Unit 1 of Sem-Calaca Power Corp. (SCPC) was offline from January to June because of the life extension project.
The listed firm had embarked on a three-year life extension program that would boost the generation capacity of SCPC’s Unit 1 by 50 megawatts (MW) to 70 MW using 100-percent Semirara coal.
It would also extend the life of the power units by about 20 years.
The listed firm had explained that this program is a cost-effective strategy to maintain and upgrade operations of existing facilities beyond its traditional lifetime, at the same time to limit environmental complications and financial risks.
Amid lower income, Semirara Mining reported that earnings in the second quarter surged by 57 percent to P3.67 billion against P2.34 billion in the first quarter.
“Second quarter performance recovered as power segment recovered in Q2 because Unit 3&4 posted higher availability augmented by higher WESM [Wholesale Electricity Spot Market] price,” the firm stated.
Coal segment also recorded a 21-percent increase in volume sold quarter over quarter.
Higher volume sold by coal segment and higher WESM prices, mitigated the drop in earnings during the period.
Net of eliminations, coal and SLPGC contributed P4.64 billion and P1.62 billion, respectively. However, SCPC saw its contributions to the company decline by P242 million.
A unit of DMCI Holdings, Inc., Semirara Mining owns and mines its own fuel source, enabling it to generate affordable baseload power for the Luzon and Visayas grids.
Semirara Mining shares added 60 centavos or 2.62 percent to close at P23.50 apiece on Tuesday.
JORDEENE B. LAGARE