SEMIRARA Mining and Power Corp. (SMPC) expects higher earnings for the second half of the year due to enhanced plant efficiency and stable coal prices, according to its chief operating officer.
“We’re looking at better income,” SMPC President and Chief Operating Officer Maria Cristina C. Gotianun told reporters last week.
She said the SEM-Calaca Power Corp. (SCPC) Unit 2 in Batangas started running at 300 megawatts (MW) in May after its 77-day maintenance outage.
However, there are still a few planned outages in other power plant units, which the company has to conduct every year, she said.
She also said that SMPC’s income is expected to be “better than the first half,” as the restoration of SCPC Unit 2 is anticipated to offset the outages of other units.
Additionally, she is hopeful for improved electricity prices at the Wholesale Electricity Spot Market (WESM), the trading floor for electricity.
“It really depends on the WESM prices, so let us see how it will compensate,” she said.
SCPC and Southwest Luzon Power Generation Corp. generate baseload power for the national grid. Both supply electricity through bilateral contract quantity and WESM.
Ms. Gotianun said that the coal business usually contributes largely to the company’s income compared to the power segment.
“Coal price has stabilized,” she said.
For the second quarter, SMPC reported a 41% decline in its second-quarter income to P6 billion from P10.2 billion previously due to weak coal and electricity prices.
This brought the company’s earnings for the first half to P12.6 billion, lower by 34% from last year’s P19.2 billion. — Sheldeen Joy Talavera
