Earnings at Consunji-led Semirara Mining and Power Corporation (SMPC) fell 33% to P13.1 billion, mainly due to weak coal and power prices, lower shipments and higher production costs.
In the fourth quarter alone, the company reported consolidated net income of P3.2 billion, down 19% from the same period a year earlier.
“While prices were soft this year, our operations still achieved record coal production and power sales,” SMPC President and Chief Operating Officer Maria Christina C. Gotianun said in a statement Wednesday.
In 2025, coal production reached a record-high 19.9 million metric tonnes (MMT), driven by better access to coal seams at the Narra mine and government approval to increase annual production capacity to 20 MMT.
The company exported 15.4 MMT, up 7% from last year, mainly due to timing of export shipments and soft demand for some low-calorie coal during the period.
The average selling price of Semirara coal fell 19% year-on-year to P2,302 per metric ton, reflecting lower global coal benchmarks and a higher share of low-calorie shipments.
This decline was reflected in a 22% decline in the average Newcastle Index to $105.60, as well as a 15% decline in the Indonesian Coal Index 4 to $46.10.
“We are also working to broaden our markets while keeping our mines and power plants running well,” Ms Gotianun said.
Meanwhile, energy sales rose 7% to a record-high of 5,296 gigawatt-hours, supported by improvements in plant reliability.
However, the average electricity selling price fell 8% to P4.38 per kilowatt-hour (kilowatt), reflecting the wide supply margin in the wholesale electricity spot market (WESM).
According to SMPC, average WESM prices fell 27% to P3.73 per kWh due to improvement in supply.
By the end of 2025, 42% of the company's 860-megawatt (MW) dependable capacity was contracted, with 422.3 MW available for sale in the spot market as per station service requirements.
SMPC is the largest coal producer in the Philippines, accounting for 97% of domestic production.
However, the operation of its main revenue-generating asset on Semirara island in Antique province faces uncertainty as its coal operating contract is scheduled for auction this year.
Semirara Island, located in the province of Antique, covers an area of approximately 55 square kilometers and can produce at least 16 MMT of coal annually.
SMPC has held the coal operating contract for the area for approximately 50 years, allowing it to explore, develop and mine coal.
The contract is due to expire in July 2027, but the government has opted to bid it out this year along with other confirmed mineable reserves.
In preparation, SMPC said it is finalizing its mine plan with the aim of completing the remaining term of its current contract.
The company's shares closed unchanged at P28.40 each on the local stock exchange on Wednesday. — Sheldin Joy Talavera