Integrated energy company Semirara Mining and Power Corp. said net income declined 61 percent in the first six months to P2.2 billion from P5.7 billion in the same period last year.
SMPC said in statement COVID-19 containment measures dragged down coal demand and electricity sales from March to June.
“We saw historic dips in prices, particularly in April when Global NewCastle coal prices reached $49.30 per metric ton, the sharpest drop in six years,” said SMPC president and chief operating officer Cristina Gotianun.
Earnings contribution from the coal business fell 59 percent to P1.8 billion in the first half on weak coal sales and average selling price.
Coal sales contracted 27 percent in the six-month period to 5.7 million metric tons from 7.9 million MT a year ago, while average selling price per MT fell 21 percent to P1,765 from P2,229.
“The decrease in spot market prices in April was also staggering. From P6.71 per kilowatt-hour last year, it plunged to P1.40 per kWh,” Gotianun said.
Power subsidiaries Sem-Calaca Power Corp. and Southwest Luzon Power Generation Corp. recorded mixed results in the first semester.
SCPC contributed P726 million to the parent company, a dramatic turnaround from P242 million in losses during the same period last year on higher energy sales which grew 22 percent to 1,095 gigawatt-hours from 899 gWh.
The company’s sales volume improved following the completion of its life extension program for units 1 and 2, which allowed the company to reduce outages by 53 percent year-on-year from 5,879 hours to 2,750 hours.
Meanwhile, SLPGC booked P236 million in first-half losses compared to P1.6 billion in earnings last year because of the combined effect of a 43-percent drop in energy sales to 489 gWh from 856 gWh and a 38-percent cut in average selling price to P2.92 per kWh from P4.73 per kWh.
SMPC earlier announced it would move the bulk of its 2020 capital expenditure budget of P3.7 billion to 2021 amid the coronavirus pandemic.
“Consistent with our disciplined and prudent approach to managing our company, we are rescheduling P3.7 billion worth of capex to 2021,” SMPC chairman Isidro Consunji said.
The company is spending only P300 million this year. SMPC last year completed its P10-billion life extension program for subsidiary Sem-Calaca Power Corp.