MANILA, Philippines – Net profits of Semirara Mining and Power Corporation (SCC) for 2017 increased by almost a fifth on stable prices and sales volume of coal and with higher production from the company’s coal factory.
In a report by Semirara to the PSE, it said that the company’s strengthened net profit following the tax grew 18 percent to 14.14 billion pesos from 12.04 billion pesos.
This resulted in an enhanced profit for each share of 3.32 pesos, increasing by 17 percent from the previous year of 2.83 pesos per share.
The company said that its coal business played a part by earning 6.08 billion pesos, 4.55 billion pesos from Sem-Calaca Power Corporation, and 3.74 billion pesos from Southwest Luzon Power Generation Corporation.
Semirara mentioned that the consolidated profitability of coal was derived by the growth in the standard selling amount, as well as by the small growth in quantity sold.
Coal sales and production created a new high record; coal sales amounting to 13.1 million tons, and production at 13.2 million tons.
At the same time, the standard sale price of coal increased by 20 percent to 2,268 pesos for each ton from 1,886 pesos.
Sem-Calaca Power Corporation (SCPC), Semirara’s power business which manages the more than 30-year old 2×300 MW coal mine located in Calaca, Batangas, recorded two notable non-recurring settlements in 2017 that had an effect on its profitability.
According to Semirara, the Power Sector Assets and Liabilities Management Corporation (PSALM) gave the power component a partial commendation of revenue from questioned income adding up to 330 million pesos.
The power business also posted accelerated devaluation resulting to a total of 840 million pesos respective to the development project of its units that will begin in late 2018.
SCPC has started with its 3-year update project for the company’s units closing 2019. It will receive help from Toshiba corporation for the operations optimization and lifespan extension of the power components.
Aside from its non-recurring reports, SCPC also enhanced its volume push production to 3,515 GWh, increasing 21 percent from last year’s 2,905 GWh.
The company’s unit 1 accounted a standard measurement of 256 megawatts higher compared to the 180 megawatts recorded in 2016. This resulted in a seven percent higher sale of total energy to 3,650 GWh from 3,322 GWh. The average selling price increased by 14 percent at 3.75 pesos for each kilowatt per hour with bigger Newcastle cost from 3.31 pesos per kilowatt-hour.
Simultaneously, sold energy cost increased 2 percent to 2.27 pesos per kilowatt-hour from 2.24 pesos per kilowatt-hour.
On the contrary, SLPGC, another power component fo Semirara, reported lower net income because it did not achieve the profit of 219 million pesos from just market worth gain respective to the financial agreement of the company with a consumer and net income settlement of 133 million pesos following the power plant’s ultimate revenues.
The decrease in the after-tax net profit is primarily an outcome of higher taxes required for the recently developed power assets on real properties and full devaluation price of the current year’s power components.
On the other hand, a 22 percent increase was recorded for gross production from 1,383 GWh to 1,687 GWh. The sum of volume sold also rose to 1,599 GWh from 1,478 GWh by 8 percent. At the same time, the selling price is somewhat higher from 4.42 pesos for each kilowatt-hour to 4.43 pesos per kilowatt-hour.