Semirara income surges 21% to P1.59B

Buoyed by higher coal prices, Semirara Mining Corp., the coal unit of the Consunji-listed flagship holding company DMCI Holdings Inc., reported a 21-percent growth in its net income last year to P1.59 billion from only P1.32 billion the previous year.

In a statement, Semirara said the 2005 net profit translates to P5.469 earnings per share (EPS).

"This solid performance came about as coal prices remained healthy with composite average FOB prices increasing by 12 percent from P1,974 per metric ton to P2,205/MT during the year," Semirara said.

Semirara said revenues rose 10 percent to P5.6 billion or an increase of P487 million from P5.1 billion in 2004.

Production increased to a historic level of 2.9 million metric tons of product coal, up 16 percent over last year’s 2.5 million metric tons as additional production and support equipment were deployed in accordance with its continuing expansion and modernization program.

Sales volume, however, declined slightly by 34,000 metric tons or one percent from 2.513 million MT in 2004 to 2.479 million MT in 2005, largely because of the prolonged maintenance shutdown of Napocor’s Calaca Power Plant 2.

Deliveries to Calaca in 2005 dropped to 1,225,110 MT from a 2004 sales volume of 1,453,480 MT, or a decline of 16 percent.

Semirara also reported that its thrust towards market diversification has paid off as it has increased deliveries to Napocor’s independent power producers like the Sual and Pagbilao Plants and other non-Napocor customers.

Sual and Pagbilao posted higher volumes of 147,000 MT and 61,000 MT respectively, an increase of 75,000 and 26,000 MT over last year’s deliveries.

Likewise, non-Napocor customers increased their purchases by 95,000 MT, further tempering the negative effects of the Calaca shutdown. The cement industry largely accounted for the increased volumes of non-Napocor accounts as Semirara coal continued to gain wider market acceptance in light of the company’s efforts to improve product quality.

In its meeting last March 6, 2006, the company’s board of directors approved the payment of a cash dividend of P1.20 per share for stockholders of record as of March 27, 2006. The declaration is in line with the company’s dividend policy of declaring cash dividends amounting to a minimum of 20 percent of annual audited net profits after taxes.