Economy · August 6, 2022

SMPC’s profit in the second quarter more than doubled

Mining and Power Corp, led by CONSUNJI. (SMPC) reported a 171% increase in net profit in the second quarter to £ 10.8bn from £ 4bn a year ago.

The consistently high coal sales prices and higher spot electricity sales volume have helped boost the company’s numbers, SMPC said.

Contributions from the coal segment grew 195% from P3 billion to P9 billion while SEM-Calaca Power Corp. (SCPC) represented £ 1 billion, up 81% from £ 581 million. Southwest Luzon Power Generation Corporation (SLPGC) contributed £ 742 million, an increase of 107% from £ 359 million.

SMPC said total coal shipments from April to June fell 24% to 3.7 million tons (MMT) from 4.9 MMT as China imposed a Covid-19 blockade and shifted to coal. Russian. Additionally, export sales dropped 44% to 1.8 MMT from 3.2 MMT while domestic sales grew 12% to 1.9 MMT from 1.7 MMT.

“As expected, we had weaker quarter-over-quarter performance due to blockages in China, but compared to last year we have done very well,” said Maria Cristina C. Gotianun, president and COO of SMPC. “We believe the second half will be anemic due to market volatility and unfavorable weather conditions.”

However, SMPC reported a 126% increase in average selling prices from P2.393 to P5.399, the highest for a given quarter.

Heavy rains and increased stripping activities held back coal production, dropping 21% to 3.4 MMT from 4.3 MMT. This, coupled with lower sales volume, increased high-quality coal stocks by 50 percent from 1 MMT to 1.5 MMT.

In the energy sector, overall gross production in the second quarter was mostly stable at 984 gigawatt hours (GWh) as the SCPC 2 unit was in a forced outage due to a faulty generator stator.

Total electricity sales fell 9% from 987 GWh to 900 GWh, 56% of which was sold to the spot market. The remaining 393 GWh were sold through bilateral contracts.

The high non-contracted capacity enabled SMPC to increase spot electricity sales by 188% from 176 GWh to 507 GWh. Average spot sales prices remained high at P6.91 compared to P6.87 last year.

Total spot purchases decreased 60% to P245 million from P617 million due to increased plant availability, which improved 8% to 65% from 60%.