SEMIRARA Mining and Power Corp. (SMPC) saw first-quarter net income drop by 28 percent to P6.54 billion, from P9.03 billion in 2023, as weaker market prices weighed on higher coal shipments and energy sales.

In a filing, the firm said total revenues also fell, by 11 percent to P18.43 billion from P20.71 billion, as global coal indices declined due to weak demand from developed countries, driven by changes in energy policies, a shift toward renewable sources, and slowing economic activities.

It noted that the Newcastle index — the main price reference for coal contracts in Asia —plummeted by 49 percent in the quarter to an average of $126 per metric ton from $247.80 per MT last year.

In the Luzon-Visayas electricity market, meanwhile, average spot prices fell by 27 percent to P4.61 from P6.28 last year on lower fuel costs and increased supply.

"While we faced some pricing challenges this quarter, our robust export sales and improved plant performance demonstrate the resilience and adaptability of our operations," SMPC President and COO Maria Cristina Gotianun said.

Coal revenues in the first three months slipped 8 percent to P14.30 billion, from P15.49 billion last year, as the average selling price (ASP) for its coal shrank by 33 percent to P2,978 per MT from P4,427.

Coal shipments, however, expanded by 37 percent to 4.8 million MT from 3.5 million MT on strong demand from China and the domestic market.

In the power segment, revenues dropped 25 percent to P5.73 billion from P7.66 billion as the average selling price for electricity declined 28 percent to P4.47 per kilowatt-hour (KWh) from P6.17 per KWh a year earlier.

On the other hand, gross generation increased by 7 percent to 1,408 gigawatt-hours (GWh) from 1,316 GWh last year, while electricity sales rose 3 percent to 1,281 GWh from 1,241 GWh.

SMPC said it would prioritize the operational efficiency of its coal segment this year to meet the production target of 15.5 million MT to 16 million MT and sustain exploration activities at the Acacia mine for future operations.

In the power segment, it plans to bring the second unit of its SEM-Calaca Power Corp. power plant back online by the end of this month, while sustaining coal blending efficiencies and maintaining contracted capacity of up to 360 megawatts (MW).

SMPC shares on Monday fell by P0.65, or 1.98 percent, to close at P32.10 each.