SMPC shares fall on coal contract renewal uncertainty

CONSUNJI-LED Semirara Mining and Power Corp. (SMPC) saw its shares decline by 21.39% on Monday following reports that it failed to secure government approval for the renewal of its coal operating contract covering Semirara Island.

- By Sheldeen Joy Talavera Reporter

At the local bourse, the company’s shares slid to a session low of P25.40 before closing at P26.10, lower than Friday’s close of P33.20.

Energy Secretary Sharon S. Garin earlier said SMPC could not renew its 50-year operating contract after the Department of Energy (DoE) sought a legal opinion from the Department of Justice.

The DoE said the contract will instead be offered through a competitive bidding process this year.

SMPC said it has yet to receive formal notice regarding the decision but noted that its long experience operating on Semirara Island gives it a competitive position.

“SMPC’s decades of experience in managing complex engineering projects, coupled with its established operations, technical expertise, and extensive equipment fleet developed through its longstanding operations in Semirara Island, provide a strong competitive advantage, which we have communicated to the DoE,” the company said in a disclosure.