SEMIRARA Mining and Power Corp. (SMPC) reported its consolidated net income jumped by 393% to P16.2 billion last year on the back of “larger than expected” coal demand, the coal supplier and power generator said on Monday.
In a disclosure to the exchange, SMPC said last year’s income was the highest it has posted in its 41-year history. The increase translated to P3.81 per share earnings with a return on equity of 36%.
“The stellar earnings result was largely attributable to stronger-than-expected coal demand, which pushed index prices to record highs before settling at elevated levels because of the China price cap. The power segment further boosted [the company’s] performance with improved sales and prices,” SMPC said.
SMPC prides itself as the lone company in the country that mines its own fuel. Aside from supplying coal domestically, it also exports coal to neighboring countries, including the three top coal importers in the world: China, Japan, and South Korea.
The mining and power company said its coal production rose by 8%, coal shipments jumped 16%, and the average coal selling prices jumped 71%.
Its coal segment alone contributed to 70% of earnings with P11.4 billion, while SMPC subsidiaries SEM-Calaca Power Corp. (SCPC) and Southwest Luzon Power Generating Corp. (SLPGC) accounted for 35% and 5%, respectively.
SCPC contributed P3.3 billion to the parent company’s income, while SLPGC shared P1.4 billion.
“Our results reflect the hard work of our people. They rose to the challenges of the pandemic and delivered exceptional value to our stakeholders,” said SMPC President and Chief Operating Officer Maria Cristina C. Gotianun in a statement.
The parent company reported that SCPC’s standalone revenues jumped by 144% to P3.73 billion from P1.31 billion, while it swung back to profitability with a net income of P529 million from a P142-million net loss in 2021.
SLPGC revenues also climbed 20% to P1.78 billion and its net income widened by 113% to P232 million.
SMPC shares at the local bourse rose P2.70 or 10.8% to close at P27.70 apiece on Monday. — Marielle C. Lucenio