SEMIRARA Mining and Power Corp. (SMPC) expects higher earnings for the second half聽of its subsidiary SEM-Calaca Power Corp. (SCPC) this year聽due to enhanced plant efficiency and stable coal prices, according to its chief operating officer.
鈥淲e鈥檙e looking at better income,鈥 SMPC President and Chief Operating Officer Maria Cristina C. Gotianun told reporters last week.
She said the聽SCPC聽Unit 2 in Batangas started running at 300 megawatts (MW) in May after its 77-day maintenance outage.
However, there are still a few planned outages in other power plant units, which the company has to conduct every year, she said.
She also said that SCPC鈥檚 income is expected to be 鈥渂etter than the first half,鈥 as the restoration of SCPC Unit 2 is anticipated to offset the outages of other units.
Additionally, she is hopeful for improved electricity prices at the Wholesale Electricity Spot Market (WESM), the trading floor for electricity.
鈥淚t really depends on the WESM prices, so let us see how it will compensate,鈥 she said.
SCPC and Southwest Luzon Power Generation Corp. generate baseload power for the national grid. Both supply electricity through bilateral contract quantity and WESM.
Ms. Gotianun said that the coal business usually contributes largely to the company鈥檚 income compared to the power segment.
鈥淐oal price has stabilized,鈥 she said.
For the second quarter, SMPC reported a 41% decline in its second-quarter income to P6 billion from P10.2 billion previously due to weak coal and electricity prices.
This brought the company鈥檚 earnings for the first half to P12.6 billion, lower by 34% from last year鈥檚 P19.2 billion. 鈥 Sheldeen Joy Talavera
