Semirara Mining: Approval of 1Q 2019 Financial Statements
The Board of Directors of Semirara Mining and Power Corporation (PSE: SCC) at its regular meeting held today, upon motion duly made and seconded, unanimously approved the 1st Quarter Consolidated Financial Statements as of March 31, 2019.
Accordingly, consolidated Net Income After Tax (NIAT) for Q1 2019 dropped to PhP2.33 billion, 49 percent lower from the PhP4.57 billion recorded in the same period last year. Net of eliminations for the coal segment and Southwest Luzon Power Generation Corporation (SLPGC) contributed PhP2.13 billion and PhP226.10 million respectively, while SEM-Calaca Power Corporation (SCPC) recorded a net loss of PhP22.37 million this year.
With 37 percent higher strip ratio of 12.53 from 9.12 last year, coal production slightly dropped two percent to 4.06 million tons from 4.12 million tons last year.
Export sales picked up, pushing total coal sales by four percent to 3.55 million tons compared to 3.42 million tons in Q1 2018.
Drop in global coal prices translated to an 18 percent year-on-year decrease in coal average selling price from PhP2,786/ton last year to PhP2,272/ton this year.
Energy sales of SCPC and SLPGC increased by 11 percent to 638 GWh from 575GWh last year.
Softer global coal prices also affected power average selling price which dropped 19 percent year-on-year to PhP4.32 per KWh from PhP5.35 per KWh in Q1 2018.
Total generation from January to March fell to 508 GWh from 642 GWh during the same period last year.
SCPC’s Unit 1 is on a six-month Life Extension Program (LEP) since December 30, 2018. LEP is a cost-effective strategy to maintain and upgrade operations of existing facilities beyond its traditional lifetime, at the same time to limit environmental complications and financial risks.
SCPC’s Unit 2 will also undergo LEP as soon as Unit 1 becomes commercially available. In Q1 this year, the plant’s outages and deration were due to boiler tube leaks and repair of condenser.
Mostly due to boiler issues, SLPGC’s Unit 3 was also down for a total of 29 days in Q1.
Meanwhile, SLPGC’s Unit 4 was placed on maintenance shutdown after experiencing tube leaks in mid-January. This, advancing the supposed planned maintenance shutdown for the middle of the year to Q1. There are no other planned outages for the unit for the rest of the year.
The power segment incurred a total loss of PhP95 million for purchases of replacement power totaling to 216 GWh in Q1.
Attached are the highlights of the standalone and consolidated performance of the operating business units.
