SMPC Q2 earnings down 33% as coal, power prices ease

SEMIRARA MINING and Power Corp. (SMPC) saw its second-quarter (Q2) attributable net income decline by 33% to P4.1 billion as coal and electricity prices continued to normalize.

- Sheldeen Joy Talavera

For the three months ended June, SMPC's revenues dipped by 18.4% to P18.17 billion due to lower selling prices in the coal segment and weaker spot market prices in the power segment, according to its financial statement released on Monday.

Broken down, coal and power revenues decreased by 20% to P10.27 billion and 6% to P6.47 billion, respectively.

The average selling price for Semirara coal went down by 20% to P2,223 per metric ton (MT) due to "the combined effect of stabilizing global market indices and a higher proportion of lower-quality and noncommercial grade coal shipments."

During the period, the average Newcastle Index fell by 26% to $100.50, while the Indonesian Coal Index 4 went down by 16% to $46.40.

SMPC's coal production increased by 8% to 5.6 million MT, driven by improved access to coal seams at the Narra mine.