Semirara Mining and Power Corp. posted a consolidated net income after tax of P14.14 billion in 2017, up 18 percent from P12.04 billion in 2016, driven by its coal mining and power generation businesses.
Semirara said in a disclosure to the Philippine Stock Exchange Friday the higher income last year resulted in higher earnings per share of P3.32, up 17 percent from P2.83 in 2016.
The company said coal, Sem-Calaca Power Corp. and Southwest Luzon Power Generation Corp. contributed P6.08 billion, P4.55 billion, and P3.74 billion to the bottom line, respectively.
“Before eliminations, the coal segment’s core NIAT of P9.04 billion, posted a 21-percent increase from P7.5 billion in 2016. This is exclusive of the dividend income of P2.5 billion in 2016 from SCPC and P1 billion each in 2017 from SCPC and SLPGC,” it said.
Semirara said better coal profitability last year was largely driven by increased average selling price and the slight rise in volume sold. The company owns the country’s biggest coal mining operations in Caluya, Antique province.
Coal production and coal sales set new record highs last year at 13.2 million tons and 13.1 million tons, respectively.
The average selling price of coal rose by 20 percent year-on-year to P2,268 per ton from P1,886 per ton in 2016.
SCPC, which owns the 600 MW Calaca coal-fired power plant in Batangas acquired from the government, posted a net income after tax of P2.33 billion, up 65 percent from last year’s P1.41 billion.
Two significant non-recurring transactions last year had impact on the profitability of SCPC, namely partial recognition of income from disputed receivables from Power Sector Assets and Liabilities Management Corp. amounting to P330 million, and recording of accelerated depreciation amounting to P840 million relative to the life extension project of units 1 and 2, which will start in the later part of 2018.
SCPC also showed improved generation, up by 21 percent to 3,515 gigawatthours in 2017 from 2,905 GWh in 2016. Unit 1 recorded an average capacity of 257 megawatts compared to just 180MW in 2016.