Integrated energy company Semirara Mining and Power Corporation (SMPC) announced today a consolidated net income of ₱4.1 billion for the second quarter of 2025, a 33% decline from ₱6.1 billion in the same period last year. This change reflects the continued stabilization of coal and electricity prices from the elevated levels seen in 2023.
For the first half of the year, SMPC’s consolidated net income likewise decreased by 33% to ₱8.4 billion, down from ₱12.6 billion last year.
SMPC President, Chief Operating Officer, and Chief Sustainability Officer Maria Cristina C. Gotianun highlighted the company’s operational resilience. “While energy prices eased, we ramped up coal production and boosted power generation,” she said. “By keeping our costs under control and operating more efficiently, we were able to cushion the impact of weaker prices.”
Market Price Corrections
Market data for the second quarter shows significant price normalization:
- The average Newcastle Index fell 26% year-on-year, from US100.5.
- The Indonesian Coal Index 4 receded by 16%, from US46.4.
- Average spot electricity prices in the Luzon-Visayas grid dropped by 42%, from ₱6.91/kWh to ₱4.04/kWh.
Sequentially, SMPC’s net income for Q2 2025 slipped 6% from ₱4.35 billion in the first quarter, driven by a muted performance in the coal segment and improved results from the power segment.
Operational Highlights
Coal Operations
- Production: Total production increased by 8% to 5.6 million metric tons (MMT) from 5.2 MMT, a result of improved access to coal seams at the Narra mine.
- Shipments: Total coal shipments remained steady at 4.6 MMT, with an increase in sales to SMPC’s power plants offsetting a decline in exports.
- Pricing: The average selling price for Semirara coal decreased by 20% to ₱2,223 per metric ton (MT), in line with market corrections and a higher proportion of lower-grade coal shipments.
Power Generation
- Sales: Total power sales grew by 17% to 1,435 GWh, up from 1,228 GWh, thanks to stronger plant availability and higher average capacity. Last year, SMPC Unit 2 underwent a 77-day planned outage.
- Pricing: The overall average selling price for electricity fell by 19% to ₱4.51/kWh, reflecting wider supply margins in the Wholesale Electricity Spot Market (WESM).
- Mix: Of the total energy sold, 56% was sold to the spot market, with the remaining 44% covered by bilateral contracts.
Looking ahead, Gotianun stated, “We expect prices to remain relatively stable. Our focus is on ramping up coal production toward our 18 million metric ton target and optimizing our generation mix to maximize contracted capacity.”
