SMPC first-half 2026 profit edges up 2% to P8.6B

Consunji-led integrated energy company Semirara Mining and Power Corporation (SMPC) posted a 2% increase in consolidated net income in the first half of 2026, supposedly driven by stronger earnings from its power business that offset weaker coal operations.

In a disclosure to the Philippine Stock Exchange on Wednesday, SMPC reported a net income of P8.6 billion for the January to June 2026 period, up from P8.4 billion a year earlier.

The company said improved performance in its power business helped cushion the decline in coal earnings during the period.

In the second quarter alone, SMPC's net income rose 17% to P4.8 billion, from P4.1 billion in the same period last year.

SMPC said its power segment contributed P4.6 billion, or 96% of consolidated second-quarter earnings, supported by improved plant availability, record power generation, and higher electricity selling prices.

Total power sales climbed 9% to a record 1,563 gigawatt-hours (GWh) from 1,435 GWh, driven by stronger performance across the company's power plants.

Spot market sales accounted for 53% of total electricity sold, while the remaining 47% was sold through bilateral contracts, SMPC said.

The company added that its average selling price increased by 29% to P5.81 per kilowatt-hour (kWh) from P4.51 per kWh, reflecting higher spot market prices during the quarter.

As of June 30, 2026, SMPC said 52% of its 860-megawatt (MW) dependable capacity was under contract, while 339.8 MW remained available for spot market sales after accounting for station service requirements.

Meanwhile, the coal segment contributed P191 million, or 4% of consolidated second-quarter earnings, as lower production and shipments, along with higher fuel costs, offset the recovery in coal selling prices.

Coal production fell 55% to 2.5 million metric tons (MMT) from 5.6 MMT, while shipments declined 13% to 4.0 MMT from 4.6 MMT.

SMPC said mining operations were affected by stripping activities in the new Narra block and limited production at the Acacia mine.

Despite lower volumes, the average selling price of Semirara coal increased 27% to P2,833 per metric ton from P2,223 per metric ton, supported by stronger global coal benchmark prices, the company said. — MCG, GMA News