SMPC profit drops 37% on weaker coal, power prices

Semirara Mining and Power Corp. (SMPC) reported a 37% drop in consolidated net income to PHP 9.9 billion for the first nine months of 2025, citing lower coal and electricity prices as the main driver.

The figure is down from PHP 15.7 billion in the same period last year, as softening market conditions squeezed margins across both mining and power segments.

Third-quarter net income fell even more sharply, plunging 53% to PHP 1.5 billion from PHP 3.1 billion a year earlier, the company said in a disclosure.

SMPC attributed the quarterly decline to reduced selling prices and higher production-related costs that eroded profitability.

From January to September, benchmark global coal indices fell — the Newcastle Index (NEWC) declined 22% to USD 104.5, while the Indonesian Coal Index 4 (ICI4) dropped 16% to USD 45.9.

Locally, spot electricity prices in the Luzon–Visayas grid also weakened, falling 33% to PHP 3.73 per kilowatt-hour (kWh) from PHP 5.59 per kWh a year ago.

Despite the challenging pricing environment, SMPC increased coal output by 15% to a record 15.1 million metric tons (MMT), driven by improved mine access at its Narra site.

Coal shipments rose 5% to 12.9 MMT, although the average coal selling price declined 19% to PHP 2,325 per metric ton from PHP 2,864 per metric ton.

Power sales grew 12% to 4,186 gigawatt-hours (GWh), but average electricity prices dipped 10% to PHP 4.46 per kWh amid the lower price landscape.

As of September 2025, 40% of SMPC’s 860-megawatt dependable capacity was under bilateral contracts, with the remainder sold through the spot market.

“SMPC remains focused on maintaining operational reliability, managing costs, and preserving financial flexibility as it navigates current market conditions,” said President, COO, and Chief Sustainability Officer Maria Cristina C. Gotianun.