Semirara posts slightly higher net income of P829M in 9 months

Semirara Mining Corp., the coal unit of the Consunji-listed flagship holding company DMCI Holdings Inc., reported a net income of P828.83 million for the nine months ending September this year, slightly higher than the P793.4 million posted in the same period last year.

The modest earnings was attributed to the prolonged shutdown of Calaca Plant 2 in Batangas.

Revenues reached P3.77 billion for the period under review, 3.6 percent higher than the previous year’s P3.64 billion.

Semirara said revenues comprised P3.72 billion of coal sales and P55.01 million proceeds from coal handling services at the Calaca plants. Gross profit, on the other hand, fell 17 percent to P1.12 billion, largely due to lower sales volume.

Operating expenses also dropped to P194.83 million from P215.4 million.

Historically, the company has been largely dependent on a single client, the National Power Corp.

In recent years, however, it has reformed its marketing strategy to include market diversification. The company has successfully sold its coal to more power plants, cement plants and other industrial users over the past few years. This move has effectively softened the adverse effects of the prolonged preventive maintenance shutdown of Calaca Plant 2, its traditional major customer.

On July 7, 2005, Semirara’s board of directors approved a shares buy-back program with a maximum limit of 40 million shares. As of Sept. 30, the corporation bought back 3.14 million shares costing P89.17 million at an average price of P28.36 per share. These shares are now held in treasury.