Semirara expects another banner year

MANILA, Philippines - Consunji-led Semirara Mining Corp. expects to post another banner year with P7 billion in profits on the back of the stronger performance of its power generation business.

The improved operations of the power generation unit will offset low commodity prices that affected Semirara’s coal business, the company’s top executive said.

Semirara vice-chairman and CEO Isidro A. Consunji said the company targets P7 billion in earnings this year.

“A little less than P3 billion in the coal mining, power generation roughly P4 billion, so around P7 billion,” Consunji said on the sidelines of a property forum organized by BDO and The Asset magazine.

Last year, Semirara’s profits rose six percent to P6.36 billion from P6 billion the previous year. Specifically, the coal business contributed P3.81 billion in net income while the power unit accounted for P2.55 billion.

Consunji said the the income mix has been reversed, with bulk of the earnings now coming from the power unit.

He said coal prices were dampened this year as its coal mining operations was affected by an accident in its project site.

In February, a section of the Panian pit west wall gave way, prompting Semirara to stop its commercial operations until March.

For parent firm DMCI Holdings Inc., Consunji said the investment firm expects to book profits of P9.5 billion from P9.79 billion last year.

Also, DMCI Project Developers Inc., which operates under the brand name DMCI Homes, will post a flat performance for this year.

“We will not focus on selling more. We are targeting flat sales of P20 billion a year,” Consunji said. “Focus is on improving our internal organization, improving the product and our business processes.”

DMCI Holdings is still also awaiting the results of the arbitration filed by Maynilad Water Services Inc. regarding the water distributor’s petition for rate increase.

“We have positive outlook on the arbitration. I just don’t know how long that will take,” Consunji said.

Last month, the Metropolitan Waterworks and Sewerage System denied the petitions filed by Manila Water Co. Inc. and Maynilad to increase water distribution rates for the next five years.