The Market Monitor Minding the Nation's Business
Listed integrated energy company Semirara Mining and Power Corp. (SMPC) reported an all-time-high net income of P12 billion in 2016, a 42 percent improvement from P8.47 billion the previous year as a result of higher coal and power sales.
More than half of the consolidated income or P6.6 billion came from the power business, with Sem- Calaca Power Corp (SCPC) and Southwest Luzon Power Generation Corp. (SLPGC) contributing P2.9 billion and P3.7 billion, respectively.
Commencement of the commercial operations of SLPGC beginning second quarter of 2016 offset the decreased availability and downtimes of the SCPC plants, resulting in total generation of 4,292 gigawatthour (GWh), a three percent uptick from 4,170 GWh the previous year.
Despite weak global prices in the first half of the year, the coal segment delivered P5.4 billion in net earnings after eliminating entries, an86 percent increase year-on-year. The growth was driven by record coal sales of 12.8 million metric tons, up 52 percent from 8.4 million metric tons in 2015.
Composite average price of coal fell 9 percent from P1,943 per ton to P1,885 per ton year-on-year. During the same period, low-grade coal supplied to SLPGC more than doubled, effectively pulling down the average price of coal.
“We delivered a solid 2016 performance despite market headwinds and operational challenges. Much of the credit goes to our people, host community, investors and government partners,” said SMPC President and COO Victor A. Consunji.
In a separate development, the SMPC board approved the declaration of stock dividends amounting to P3.2 billion divided into 3.2 billion shares at the par value of P1 per share or three common shares for every one common share held from the unrestricted retained earnings of the Corporation as of December 31, 2016.
The SMPC board authorized the President to determine the record date and payment date for the stock dividends.
The stock dividend declaration is subject to shareholder approval in the next SMPC annual stockholders’ meeting on May 2.
RIZA LOZADA